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International Franchise

The Spaghetti House International Franchise

THE SPAGHETTI HOUSE is eager to expand its international market primarily through the network of franchising in South East Asia region outside Hong Kong where all local outlets are solely operated and managed by CAFE DE CORAL GROUP. Current franchising activities are in the form of integrating international franchise concept with our very successful restaurant concept and experience to various parts of the world.

Success Factors Basic Franchise Terms Most Frequently Asked Questions Franchise Support Proforma Profit & Loss Statement Application & Inquiries

Success Factors

In expanding steadily in both local and overseas markets, THE SPAGHETTI HOUSE has developed its own formula to success. To be a franchisee of THE SPAGHETTI HOUSE, you can immediately share our success secrets of:

  1. Comprehensive On-going Management Backup;
  2. A Proven Operating System and Business Format;
  3. Ample Choices of Menu Items supplemented with Seasonal Menus and Effective Marketing Tools;
  4. State-of-the-art Design and Concept.
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Basic Franchise Terms

The basic term for a Franchise Agreement is normally 5 to 10 years and is subject to renewal for qualified franchisee. Franchisee then develops a specific territory by opening agreed number of restaurants during the term. THE SPAGHETTI HOUSE franchise fee may vary in different locality; however, it will be based on the following basic terms:

Master Franchise Fee

Initial fee for granting a territorial development rights with the entitlement for sub franchising.

Shop Opening Fee

Fee for shop opening consultancy and support as the franchisee sets up each new outlet.

Royalty Ties

A certain percentage on gross sales and receipts at a monthly basis.
* The final terms are to be evaluated with prospective franchisees.

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Most Frequently Asked Questions

Q1:
How much do I need to invest in the initial setup of THE SPAGHETTI HOUSE, and how do I know that the franchise is a good investment?
A:
Initial investment amount may vary from country to country due to influential factors such as local price index and material accessibility. Franchisee should always be remembered that the critical factor in the success of any business is largely depending on their own commitment and dedication on the business. The potential success of a franchise business has no difference from any other business,as that a franchisee can benefit from the past experience of the franchisor. Our record has showed a very high percentage in return on investment as to indicate THE SPAGHETTI HOUSE is one of the best franchise investments in the industry.
Q2:
What form of training will I receive from THE SPAGHETTI HOUSE?
A:
THE SPAGHETTI HOUSE restaurant experts will provide practical and professional training in one of our restaurant outlets which covers all aspects of operating THE SPAGHETTI HOUSE from kitchen operations to frontline services. Franchisee and their staff (normally the General Manager and Head Chef) must spend a minimum of four to six weeks to gain the first hand experience and training. THE SPAGHETTI HOUSE consultants will also assist you in setting up and constructing your restaurant.
Q3:
What form of continuing support will I receive?
A:
Our experienced staff of THE SPAGHETTI HOUSE will be available to assist in your business operations. THE SPAGHETTI HOUSE representatives will also make periodic visits to your restaurant to keep updated on new management tips.
Q4:
How about territorial protection?
A:
THE SPAGHETTI HOUSE will specify the territory of operations for the franchisee with an aim to protect the interest of the franchisee and to avoid cross-traffic conflicts.
Q5:
What qualifications do I need to have to become successful with THE SPAGHETTI HOUSE franchise?
A:
In our experience, franchisees have full dedication to success with demonstrated experience in food-associated business operations and substantial financial strength are benefited utmost from THE SPAGHETTI HOUSE franchise. Applicants who have less experience but with extensive local connection with related business experts will also be considered.
Q6:
What should I do next?
A:
The first step is to return the Franchise Application Form to us. However, this does not oblige you or THE SPAGHETTI HOUSE in any fashion but to determine mutual compatibility. Upon receipt and review, we will contact you to arrange a meeting and fully discuss everything in details and the structure of the franchise terms.
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Franchise Support

  • Administration and System Setup in areas of Sales & Profit Optimization, Cost Control, Staff Management & Scheduling, Operations and Quality Control;
  • Marketing and Product Development Support on new product launch, local menu and product design, marketing planning and point of sales materials;
  • Design and Construction Support with professional advice on procurement of restaurant facilities and equipments, real estate analysis, restaurant layout and design;
  • Hands-on Training Programs for both restaurant operations and management.

Raw Material Procurement

Material supplies are available directly from our Central Food Processing Plant or with our assistance on Local Sourcing according to THE SPAGHETTI HOUSE's purchasing specification at comparative price.

Project Development

Transfer of complete know-how in interior design, floor plans, kitchen equipments, facilities layout, patented wall murals and fixtures, as well as finishing specifications construction for a full-size restaurant with on-site project management support during fitting-out period.

Operations

Regular shop visits conducted by THE SPAGHETTI HOUSE's professional consultants with direct assistance provided in all aspects regarding restaurant operations which includes setting up service manuals, operating system, productivity system, sales and marketing system and enterprise resource system to cater different territories with diverse cultural and practical concerns.

Training

Intensive in-store training in Hong Kong and on site is carried out by THE SPAGHETTI HOUSE's consultants in all aspects from kitchen to floor sections of restaurant operations. With hands-on 'Train the Trainer' scheme presented, franchisee will also be able to conduct ongoing training to their staff to sustain high service and product quality standard.

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Proforma Profit & Loss Statement

   
      %  
 

Sales

  
100.0
  
  Cost of Sales    
 
  		• Food & Beverage
    18.0
    		  
      Gross Profit
    82.0
    		  
      Less: Expenses  
     
  		• Labour
    20.0
    		  
     
  		• Utilities
    6.0
    		  
     
  		• Rental
    18.0
    		  
     
  		• Depreciation
    5.0
    		  
     
  		• Advertising & Promotion
    2.0
    		  
     
  		• Others (Insurance, Legal Fee, Franchise Fee, Operating Costs)
    10.0
    		  
     

     
    		 
      Total Expenses
    61.0
    		  
      Operating Incomes before Royalty Fee *
    		 
      * to be negotiated
    21.0
    		  
           

     

    This proforma breakdown on Profit & Loss percentage is for illustration purpose only. Actual outlet performance varies widely from country to country. Each outlet should be evaluated carefully by the franchisee candidate. THE SPAGHETTI HOUSE makes no representation or assurance that any performance measures are to be obtained.

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    Application & Inquiries

    THE SPAGHETTI HOUSE is currently accepting application from interested parties to become our franchise partners. To return a completed Franchise Application Form or for inquiries, please refer to the following contact:

    Address: Café Coral Centre No. 5-13 Wo Shui Street, Fotan, Shatin N.T., Hong Kong
     
    Tel : (852) 2601 7828
    		 
    Fax : (852) 2607 5365
    		 
    E-mail : franchise@spaghettihouse.com
    		 
    Website: www.spaghettihouse.com
     
    		www.cafedecoral.com
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