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FRANCHISE FAQs
1. General
Questions
2. Location of
Silk Road Restaurant
3. Commercial Terms
4. Operations &
Audit
5. Sales & Marketing
6. Chefs & Service Staff
7. Start-up Support
| 1. General
Questions |
What are the benefits in joining the SILK
ROAD RESTAURANTS franchise?
- A mix of restaurant
and/or noodle bar concepts
- A proven authentic,
high quality, value-for-money mainland
Chinese cuisine
- A strong corporate
identity and brand name
- Transfer of comprehensive
restaurant management know-how in operating
the outlets
- Training for both
chefs and service staff
- Access to recipe
creativity and sourcing expertise
- Benefits from
on-going operational system improvements
and menu developments
- Advice and materials
in advertising and promotions
Must a franchisee have
prior experience in the food & beverage
business?
Not necessary. The
set-up and operational know-how will be
taught to the franchisees.
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| 2. Location
of Silk Road Restaurant |
Is there an exclusive
territory for each SILK ROAD RESTAURANTS franchisee?
Yes, each SILK ROAD
RESTAURANTS franchisee will be given the exclusive
rights to operate within a defined zone.
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| 3. Commercial
Terms |
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How much does the SILK
ROAD RESTAURANTS franchise cost? What are
the Principal Commercial Terms?
| Franchise Type |
Area Franchise |
| Stores to Open |
Territory dependent |
| Franchise Tenure |
10 years |
| Initial Franchise
Fee |
US$100,000 - US$200,000 |
| Royalty |
5% - 7% of total
revenue |
| Capital Requirements |
US$500,000 - US$1,000,000 |
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What is the Initial Franchise Fee for?
The Initial Franchise Fee
is payable for the right to operate the
Silk Road Restaurants business in the exclusive
territory for the designated period of tenure.
Are there performance
targets imposed on franchisees?
There will be performance
targets set each year, through consultation
between the franchisee and franchisor. Such
targets will be realistic and achievable.
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| 4. Operations
& Audit |
How will the franchisor
help me run the outlets? What operations
support will be provided?
Franchisees will be given
assistance at each phase of the outletıs
development:
- Start-up - training
on operations & advice on the set-up of
the outlets
- Annual business
review - franchisor staff will visit franchisee
outlets to analyse the outletsı performance
as well as advice on how to improve business
- Ad-hoc assistance
- the franchisor is also available to
assist franchisees facing issues that
require their assistance, through phone,
fax, e-mail or mail
What sort of training
in operations will be given?
- Service - Service
sequence and procedures and product knowledge
- Kitchen - Food
handling, preparation procedures, storage,
hygiene training, product knowledge and
recipes
- Account & Audit
Formats of accounting reports will be
provided
Where do I obtain the
ingredients and sauces required for food
preparation?
The franchisor will supply
the sauces and condiments according to orders/quantity
placed by the Area Franchisee. The other
ingredients (such as meats and vegetables)
will be sourced for locally by the area
franchisee, according to the standards as
stipulated by the franchisor. The selected
suppliers must be approved by the franchisor.
Will I have to keep my
records and accounts in accordance with
the SILK ROAD RESTAURANTS standard?
Yes, records will have to be kept in accordance
to the format as provided by the franchisor.
Keeping accurate records will enable the
franchisor to better assist in operations
support and diagnose operational issues
when called upon to help.
What happens when the initial tenure ends?
The extension of the
franchise tenure will be negotiated at that
point in time, based on the prevailing terms
and conditions. The philosophy of the SILK
ROAD RESTAURANTS franchise is to create
a win-win partnership with committed franchisees
over a long-term period.
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| 5. Sales
& Marketing |
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Do I have to pay
a separate A&P fee to the franchisor?
The franchisor will
study with the franchisee on the requirement
for the best strategy for brand marketing
of the area concern. As the need arises,
franchisee may be required to set aside
certain amount for A&P.
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| 6. Chefs
& Service Staff |
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Will the franchisor help recruit qualified
chefs for my outlets?
Yes. All expenses will be borne by the franchisee
and all work permit application will be
handled by the franchisee.
Will the franchisor
help to train my chefs?
Yes. Training will
be conducted based on "Train-The-Trainer"
programme.
What sort of R&D
can the franchisor commit to undertake on
an on-going basis?
The franchisor will
from time to time innovate on new dishes
and cuisines to be featured on a promotional
basis or incorporated into the menu.
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| 7. Start-up
Support |
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What do you mean by start-up
support? What can I expect from the franchisor?
- Advice on the
location and set up of the outlets
- Start-up training
for staff
- Advice on operating
the outlets (pricing of courses, A&P strategies,
staffing requirements, etc)
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