| 1. What is the cost of opening a The Great Canadian Bagel store? |
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Franchisees of The Great Canadian Bagel can operate either "Full Production" or "Non-Production" stores. While we no longer construct new full production stores. They are available via purchasing one from our current franchise base. See list of stores for sale. |
A Non-Production store typically
involves a total development cost ranging between $85,000 and $175,000. A large portion of the
cost may be financed, though we recommend cash equity of at least 50%. "Non-Production" stores lack the equipment needed to prepare the bagel dough (usually due to space restrictions) and instead purchase their bagels "par-baked" from our supplier. These bagels are made using the same recipe and high-quality ingredients used in our Full-Production stores, and are virtually identical to bagels made from scratch on-site. |
| 2. Will The Great Canadian Bagel select the location
and build the store for me? The Great Canadian Bagel is actively seeking prime locations. In certain instances, you may choose to open a store in a location selected by yourself, though the location must be evaluated and approved by The Great Canadian Bagel. Construction of the store will be co-ordinated by The Great Canadian Bagel. Alternatively, there are occasions when existing Franchisees may choose to sell their store. Click here for more information on purchasing an existing location. |
| 3. Who holds the lease? I have little experience in negotiating leases. Will The Great Canadian Bagel offer assistance in this area? |
| This varies from location to location. In some cases the Franchisee holds the lease directly, while in other cases the premises are leased by one of the Franchisor's companies and sublet to the Franchisee. The Great Canadian Bagel will fully negotiate or aid in lease negotiation for Franchisees. |
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| 4. How do I get building plans? The Great Canadian Bagel assist in developing the building plans for your location, including any necessary architectural and/or engineering drawings. However this cost of all drawing are part of the original store capital cost. 5. What hours will the store be open? Again, this varies by location. In a typical plaza or street-front location, the store may be open from 6 am to 7 pm weekdays, and 7 am to 6 pm on weekends, for a total of approximately 87 hours per week. Baking usually begins a half hour prior to opening the store. Locations in office buildings may have much shorter hours, closing prior to 6 pm and operating only 5 or 6 days per week. |
| 6. Is the Franchisee required to purchase any supplies or ingredients directly from The Great Canadian Bagel? |
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No. Quality specifications and authorized sources of equipment, supplies, and ingredients are provided to each Franchisee. |
| 7. Must a Franchisee have prior
experience in food retailing or baking? No. Though related experience is helpful, The Great Canadian Bagel will provide comprehensive training and operating assistance. The desire and effort of the Franchisee can be more important than baking or retailing experience. |
| 8. Is it difficult to bake bagels? Not at all. Through extensive formulation, testing and application in our stores, The Great Canadian Bagel has developed a simple, systemized approach to baking bagels. In our "non-production" stores, this is made even simpler through the supply of "par-baked" product to the stores. Franchisees will be taught to bake and prepare all products using The Great Canadian Bagel's proven recipes. |
| 9. Does The Great Canadian Bagel require Franchisees
to be actively involved in operating the store? Yes. The Great Canadian Bagel business requires and responds to the personal input and attention of the owner. It is essential that the Franchisee become personally involved in all facets of the business. You can expect to work many long hours, particularly at the beginning. You should be willing and capable of performing all sales, production and other functions required on a daily basis. The demands on you personally can be minimized by your ability to attract, motivate and retain capable employees. |
| 10. Can a Great Canadian Bagel Franchisee own more
than one The Great Canadian Bagel franchise? Possibly. A Franchisee who has demonstrated success in organizing and operating a profitable The Great Canadian Bagel store may be eligible for new franchise opportunities in the future. |
| 11. What training and Store Opening Assistance is provided to Franchisees? |
| The Great Canadian Bagel will provide an extensive training program covering all aspects of store operations, including baking procedures, operating policies, equipment maintenance, selling and merchandising, management |
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| control, etc. This program is currently
three weeks in duration and held at our Mississauga office and designated training stores.
The program is mandatory for Franchisees. Training is also made available for any key employees.
For new stores, training is included as part of the initial Franchise Fee. There is no
additional cost for training of Franchisees or their staff. In resale situations a training
fee is charged to the incoming Franchisee in lieu of an initial Franchise Fee. Franchisees
are responsible for any travel and accommodation costs incurred during training. In addition, The Great Canadian Bagel will provide on-site pre-opening assistance and training to the Franchisee and their staff, and will continue to provide on-site training and assistance throughout the initial week of operation. |
| 12. What is the royalty fee? A royalty of 6% of gross sales is paid on a monthly basis. |
| 13. Is there an advertising fee? There is a provision in the franchise contract for Franchisees to contribute up to a maximum of 3% of sales to a marketing co-operative (at present the fund is collecting 1.5% of sales). This fund is administered by the Franchisor in conjunction with a "Franchise Advisory Board" consisting of Franchisees from across the country. The Franchisor contributes an equivalent amount of company store sales. |
| 14. What is the initial Franchise Fee? The initial Franchise Fee is $30,000 for full production stores and $20,000 for non-production stores, and is payable upon execution of the Franchise Agreement. Franchisees are entitled to a $5,000 reduction in the Franchise Fee for any second or subsequent locations. |
| 15. What level of income can a Franchisee expect to
earn? A proper understanding of the financial aspects of owning a The Great Canadian Bagel store is a critically important part of the investigation process for prospective Franchisees. Because we believe it is very important, we do not wish to "gloss over" this information. In an effort to provide the most thorough information possible, a detailed "Financial Information Summary" is provided to prospective Franchisees who have completed the interview stage of the qualifying process. This package of information provides details on development costs, and operating revenue & expenses, together with a format to allow prospective Franchisees to develop site-specific cash flow projections based upon their situation. Naturally, there are many factors involved in determining the level of revenues and expenses of an individual store. The Franchisee's management skills, time commitment, locational factors, overhead costs, etc., will all have an influence. |
| WHERE DO WE GO FROM HERE? 1. If you are interested in proceeding further, download our Application Form, fill it out, and forward it to our office. (Note: You'll need Adobe Acrobat Reader to view this form, which can be obtained free of charge from Adobe's website.) Provided there is mutual interest we will arrange for a personal meeting. The initial meeting may be followed up by additional meetings with Support Office personnel. In the event that there are no franchises available at the time, your application will be kept on file for future consideration. Click here for more information on purchasing an existing location. |
| 2. Prospective Franchisees will be
supplied with a copy of our Financial Information Summary. Prospective Franchisees are
encouraged to visit several existing locations and contact existing Franchisees.
We will be happy to provide names and contact numbers. 3. Next, we would supply a copy of our Franchise Agreement and Disclosure |
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| Document, as applicable, for review by your solicitor. 4. In the event that a specific location has not yet been determined we will work together to secure one at the best rate and terms possible. 5. Once the Franchise Agreement is executed and the lease finalized, we set up a mutually convenient time for training and store takeover. |