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

 

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



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


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


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

 

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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