Introduction
This guide is designed to clarify the roles and responsibilities of both Crave Cookies as the franchisor and you as the franchisee. The success of your store is squarely in your hands, and this document will serve as a comprehensive blueprint for navigating your business to profitability.
Section 1: Franchisor Responsibilities
A. Product Development
We provide an evolving lineup of award-winning cookies, with new recipes and seasonal offerings regularly added to the menu. Though the franchise agreement doesn't obligate us to create new recipes, our consistent practice is to innovate.
B. Staffing Guidelines
We supply suggested staffing levels that aim to maintain labor costs under 29% of gross sales. This includes guidelines for hiring, but all employment decisions are solely your responsibility.
C. Operational Support
Consulting services are available by phone or electronic communication to resolve operating problems or offer business improvement advice. In-person support is available for a fee, but only for stores that have shown a willingness and readiness to act on our advice.
D. Pricing Strategy
We have the right to determine the prices of menu items to ensure uniformity across the franchise network.
E. Administrative Procedures
Guidelines for administrative tasks like bookkeeping, accounting, and inventory control will be provided, and at times, made mandatory.
F. Marketing Fund
We manage the Marketing Fund, which requires your contribution of either 2% of your sales or a flat $100 daily. This should not be considered as your only marketing effort.
G. Website Maintenance
We manage the central website, including individual pages for each franchise location.
Section 2: Franchisee Responsibilities
A. Brand Adherence
Maintaining the quality of our product and the customer experience is non-negotiable. Brand guidelines must be strictly followed.
B. Operational Implementation
The success of your store relies on the effective implementation of the guidelines we provide. You are responsible for ordering, inventory management, and all operational aspects of your store.
C. Staffing & Labor Costs
We provide a model for staffing, but you are responsible for hiring, managing, and retaining staff. Labor costs must be managed to stay under 29% of gross sales. Failure to do so jeopardizes your profitability.
D. Cost of Goods Sold (COGS)
Managing your COGS effectively by following our ordering guidelines is crucial. If your COGS and labor exceed 30%, your store will not be profitable.
E. Driving Sales & Customer Retention
You are solely responsible for driving sales. This involves local marketing efforts, community engagement, and exceptional customer service.
F. Store Success & Profitability
Your profitability is directly correlated with your ability to implement our guidelines effectively. Consulting services from the franchisor are only made available to those who have shown the capacity and willingness to implement changes.
G. Additional Consultation
Consultation and advice from us are available upon request but only extended to franchisees who have proven that they will act upon the guidance provided.
H. Quality Control
It's critical to maintain the quality of our products, which is solely your responsibility as a franchisee. We do monitor weekly prep pictures for general oversight, but day-to-day quality control is entirely within your purview. We strongly recommend implementing multiple stop-gaps in your processes to ensure that the cookies you serve match Crave's high standards for taste, texture, and visual appeal.
Cookies should be baked properly and should visually mirror the cookies displayed in our advertising. When we create brand imagery, we pull cookies directly from the warmer. We don't employ any special photography tricks or lighting enhancements; what you see is what we serve. Failure to maintain these quality control measures jeopardizes not just your store's reputation but the brand as a whole.
Section 3: Additional Resources Provided by the Franchisor
Although not contractually obligated, we offer several additional resources:
Ordering Guides: Comprehensive guides detailing necessary inventory to help you manage your Cost of Goods Sold (COGS).
Post-Purchase Consumer Surveys: To gather insights about store visits and improve customer experience.
Marketing Collateral and Creative Assets: Regularly updated high-quality videography and photography of each cookie, ad copy, and other promotional materials.
Customer Service Desk: A centralized desk to manage complaints and inquiries made through social media platforms.
Online Ordering Platform: Simplifies the ordering process for customers and streamlines inventory management for you.
Mobile App: Enhances customer engagement and provides an additional sales channel.
Vendor Relationships and Discounts: Access to brand-only discounts on essential items for day-to-day operations.
Weekly Menu Updates: Tailored new menu boards for each location.
Updated Point of Sale: Weekly updates to reflect the current lineup of cookies.
Advertising and Promotional Materials: New materials weekly to promote the current menu offering.
Influencer Outreach and Brand Partnerships: Relationships that boost our brand and offer high-profile exposure for your location.
Financial Analysis: Detailed financial analysis of profit and loss statements, only for franchisees who have demonstrated an ability and willingness to implement our advice.
Conclusion
It's crucial to understand that the success of your franchise is entirely your responsibility. We offer guidelines, models, and consultation, but the onus is on you to implement these effectively. Stores that fail to manage COGS and labor costs under the recommended 30% threshold will not be profitable. Your ability to drive sales, customer retention, and maintain product quality is the key to your success.
By fully understanding and acting upon these roles and responsibilities, you position yourself for success within the Crave Cookies franchise system.
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