The Concept of Franchise at Arabiata
Arabiata grants the franchise and the right to improve restaurants by using its trademark and operation system inside and outside Egypt. The type of the granted license varies according to the area of franchise as follows:
- Outside the Arab Republic of Egypt
Arabiata grants the franchise in the form of an agreement under which the investor is granted the franchise of improving and operating Arabiata restaurants in a specific area (country) with a specific number of branches for a specific period. Arabiata shall provide the necessary technical support and franchise services for the company during the agreement period.
- Inside the Arab Republic of Egypt
Arabiata grants the franchise in the form of a management agreement under which Arabiata shall be responsible for the restaurant management and the restaurants that have been fully franchised during the agreement period, provided that the investor shall be responsible for securing the franchised location and fully equipping the same according to Arabiata specific standards.
- The Required Features of the Franchise Applicant
In Arabiata, we insist on keeping our restaurants the best image of professionalism in performance and providing the highest value for our customers, so we desire that the franchise owner shall be on the same level of determination and enthusiasm, and shall have innovation, leadership skills and penetrating vision in the business field.
To obtain the franchise of developing and operating Arabiata restaurant you should have the following:
The Required Operation experiences:
- To have experience and awareness in the field of food and beverages service, the oriental and Egyptian restaurants are preferable in addition to general knowledge of food manufacturing as well.
- To have an administrative infrastructure including the appropriate administrative structure to support and develop the granted franchise.
- To have the technical experience and awareness of the local market, purchasing habits, demographics of consumers, and labor distribution within the market to be developed.
- To have the ability to provide the sufficient capital required for building and developing the project.
- To have additional units of the franchise.
- To have the ability to develop at least two branches per year (Outside Egypt).
The Required Documents:
- Filling the franchise form (Pre-qualification Request).
- Fulfilling the required study about the franchise target market.
- Submitting the approved financial statements and auditing which support practicing franchise.
- The auditing reports and company financial analyses for the period of three precedent years.
- The balance sheet, profit and loss account and cash flows of units under operation (if any).
- A feasibility study of the project and a detailed business plan for the next five years.
- A satisfactory envision about the financial performance and results of the first opened restaurant.
Franchise (Questions & Answers)
Here are some questions arising from Arabiata franchise applicants, and the answers may cover most of the needed information to assess this investment opportunity. In case of any other unanswered questions in the topic below, contact Arabiata management immediately or its representatives who welcome answering your inquiries.
(Questions & Answers)
Where will Arabiata franchise be granted? (Geographical areas)
Arabiata franchise is now available to be granted in the Arabian Gulf, North Africa, East Asia, Europe, America, in addition to the franchise granted to the Egyptian market branches.
What is the type of Arabiata Franchise and what is the available duration of the contract?
Arabiata franchise is in the form of an agreement to develop a specific area, and the period of the contract is 10 renewable years for the franchise outside Egypt. Arabiata also grants licenses to open separate locations in some areas according to the plan of geographical dispersion inside Egypt.
Is it possible to open only one branch?
Arabiata does not currently grant license to open only one branch outside Egypt, but grants a development agreement of a specific area with a minimum number of branches, while the franchise shall be granted for only one branch in the Egyptian market in specific areas.
Will Arabiata franchise be appropriate for the target market?
To get a successful Arabiata franchise, it shall fulfill customers needs in the target market, and we will work together to achieve the same by God willing.
What is the required initial investment?
The required initial investment to open Arabiata branch shall depend on the selected location and many other factors, but the required average capital to open a standard model of Arabiata restaurant is about $ 450,000 to 600,000.
Is it possible to finance the franchise applicant?
Arabiata does not currently finance the franchise applicant.
How much will be the equity, franchise fees and any other fees I am supposed to pay to Arabiata?
The development fees required varies from one area to another according to the size of the area and the number of restaurants planned to be opened within the agreement period. The fees will be determined as soon as you apply for the pre-qualification request where the required franchise area is indicated. The general structure of franchise fees is as follows:
Development Fees shall be paid once at the beginning of the contract against the Arabiata restaurants exclusive development right during the contract period.
Franchise fees shall be paid at the opening of each of the restaurants mentioned in the development agreement in the franchise area during the contract period.
Sales Monthly Rate (Royalty) against using the trademark. Arabiata will collect a percentage of the marketing share from the franchised restaurants in some areas according to the advertising and promotional policy of the company in all franchise areas – this will be discussed in detail in the interview.
What is the franchising form granted in Egypt?
In granting franchise in Egypt, Arabiata depends on maintaining the right of full management of the project like any of Arabiata’s branches in Egypt, as well as supervising the location during construction and finishing, and at the same time maintaining the investor’s or its representatives’ right of close follow up.
What type of expected support after signing the franchise agreement with Arabiata?
Arabiata will fully manage the franchised restaurant after the investor provides and prepares a suitable location according to the specifications determined by Arabiata through the management and franchise agreement.
Arabiata will provide full technical assistance and franchise services including the following:
- Assisting in evaluating locations and selecting the most suitable.
- Assisting in producing engineering and architectural drawings for the location through providing standard models for Arabiata restaurants decoration and through approving the final drawings of the location.
- Continuous support in the development process.
- Detailed description of products, menus, served food and beverages recipes.
- Suitable menus for the target market and all restaurants to be opened.
- Closely following up the restaurants operation system as well as continuous support.
- Marketing programs and continuous marketing support.
- Training programs for all functional levels in the restaurants.
- Initial training programs in an approved restaurant in Cairo for both the operation manager and the first line manager of the restaurant to be opened (the Franchised party shall bear the cost of accommodation, travel and transportation expenses).
- Restaurants supervision will continue after opening, along with making periodic visits and operational reports, assessing quality level and suggesting corrective procedures in case of any breach in the restaurants operation system.
How to start and what are the procedures to be followed?
Please review the specifications and qualifications of “franchise applicant” , simply fill in the franchise application form . Arabiata franchise development representatives will review your pre-qualification request and decide the next step according to the information you provided and the geographical scope of the requested franchise area.
Arabiata Franchising Steps
Submitting the required documents
Submitting the pre-qualification request, statement of the financial position, target market research and completing the franchise application form either through our e-mail: firstname.lastname@example.org or send the form to our office in Cairo on the address: Serag Mall, entrance (5), 10th floor, Makram Ebeid St., Nasr City. We may ask you for some additional information and the information you provided in the market research of the target area, as well as your financial position and that of your partners (if any).
We will evaluate your financial position, credit worthiness and the available information about your company or business. As soon as you get the preliminary approval, you will be informed that your application has been accepted.
Detailed induction presentation
An induction presentation of Arabiata in our head office and a tour in our locations in Egypt will be made. Our franchise administration representatives will arrange the interview appointment in our Cairo office.
During this visit, you will receive a detailed presentation of Arabiata restaurants operation system and get a chance to visit Arabiata’s different locations.
Accepting the franchise application and attending an induction presentation.
In this step, you will have the full impression about Arabiata, which will help you in making your decision. When the franchise application is accepted, a draft contract of the target territory franchise will be prepared.
At the execution of the agreement, we will hold a presentation meeting to discuss the standards and specifications of selecting Arabiata’s locations. We will also discuss issues related to feasibility survey, constructions and financial affairs.
The suggested locations will be offered to a specialized committee of Arabiata to determine their appropriateness. According to the committee’s decision, you will be informed of the location approval in case it meets all the requirements.
A detailed training program will be arranged about the operation system and working in Arabiata restaurants to the investor, operational manager who will be responsible for Arabiata restaurants and the first line manager of the restaurant to be opened within the franchise area development plan in one of our approved training branches in Cairo, Egypt.
In addition, a training team from Cairo will be sent before every restaurant opening to assist the main working team and ensure the branch’s readiness for operation.
Branch opening and operation.