Franchising is a modern and safe system of business cooperation between a Franchisor and one or several Franchisees. Each party is independent from the others under a legal and economic viewpoint.
They sign an agreement so that:
the Franchisor grants to the Franchisee the use of a business formula which includes the entitlement to exploit the Franchisor's know-how (a set of techniques and knowledge), and distinguishing signs (brand and signs) together with other services and forms of assistance in order to support the Franchisee to operate the Franchised company with the same fashion as the Franchising company;
the Franchisee is committed to appropriate the business and image policy of the Franchisor in the mutual interest of the parties, as well as to comply to freely agreed contract clauses.
They sign an agreement so that:
the Franchisor grants to the Franchisee the use of a business formula which includes the entitlement to exploit the Franchisor's know-how (a set of techniques and knowledge), and distinguishing signs (brand and signs) together with other services and forms of assistance in order to support the Franchisee to operate the Franchised company with the same fashion as the Franchising company;
the Franchisee is committed to appropriate the business and image policy of the Franchisor in the mutual interest of the parties, as well as to comply to freely agreed contract clauses.
The Franchisee is the owner of his business activity and implements the Franchisor's strategies. He is committed to comply with the operational standards so that he can get the best advantage from belonging to a network that operates under the same brand all over the Country.
The Seven key-points of T-Bone Station
Experience
The multi-annual experience made by TBS in the restaurant sector is a fundamental element to choose our brand. Our background and our results showed that TBS is a winning experience.
The Seven key-points of T-Bone Station
Experience
The multi-annual experience made by TBS in the restaurant sector is a fundamental element to choose our brand. Our background and our results showed that TBS is a winning experience.
Competitive Advantages
The TBS franchising package helps to get an advantage against competitors that would not otherwise be possible by a single business: brand value, know-how, products and services that make up a unique and original system.
Testing
The TBS system has been tested on pilot sales points for quite a long period of time. However, it is important to know that this is an ongoing testing in order to make progress. Know-how, procedures and management techniques are constantly upgraded and updated..
The TBS franchising package helps to get an advantage against competitors that would not otherwise be possible by a single business: brand value, know-how, products and services that make up a unique and original system.
Testing
The TBS system has been tested on pilot sales points for quite a long period of time. However, it is important to know that this is an ongoing testing in order to make progress. Know-how, procedures and management techniques are constantly upgraded and updated..
The Control System
The TBS data control system consists of a management reporting system that outputs cost and revenue analysis in a short deadline.
Support Services
Training, supports, supervision at kick off and in later periods are constant TBS elements that contribute to develop the business chain. Additionally they help improving the Franchisee business results.
Margins
TBS products and service provide economic advantages that are sufficient not only to one business entity (Franchisee) but to two both parties (Franchisor&Franchisee)
The TBS data control system consists of a management reporting system that outputs cost and revenue analysis in a short deadline.
Support Services
Training, supports, supervision at kick off and in later periods are constant TBS elements that contribute to develop the business chain. Additionally they help improving the Franchisee business results.
Margins
TBS products and service provide economic advantages that are sufficient not only to one business entity (Franchisee) but to two both parties (Franchisor&Franchisee)
Availability and Information
Before entering into the agreement, TBS provides the following information: information about the company, information on the property of the brands and patents, address of the operating commercial network, a copy of the financial statements, a copy of the Franchising contract with all the enclosures, an hypothesis of the Franchisee financial report, banking references.
The Franchising Project
The TBS project is implemented through a constant monitoring of business partners. The aim is to open Steakhouse restaurants whose menus are based on high quality steak and original recipes. The restaurant decoration and organisation must be made in compliance to clearly defined aesthetic and technical criteria.
Before entering into the agreement, TBS provides the following information: information about the company, information on the property of the brands and patents, address of the operating commercial network, a copy of the financial statements, a copy of the Franchising contract with all the enclosures, an hypothesis of the Franchisee financial report, banking references.
The Franchising Project
The TBS project is implemented through a constant monitoring of business partners. The aim is to open Steakhouse restaurants whose menus are based on high quality steak and original recipes. The restaurant decoration and organisation must be made in compliance to clearly defined aesthetic and technical criteria.
The services below will be provided to the Franchisee at start up:
• Joint search for the best location
• Design for technical equipment and furniture decoration based on TBS standards
• Presence of TBS representatives on the work site for restaurant set up
• TBS logo, image and colours
• Preparation of the forecast income statement
• Operation handbooks / handing over of all the know-how
TBS has the right to make visits on a regular time basis to verify whether the Franchisee is constantly applying the required standards and procedures.
• Joint search for the best location
• Design for technical equipment and furniture decoration based on TBS standards
• Presence of TBS representatives on the work site for restaurant set up
• TBS logo, image and colours
• Preparation of the forecast income statement
• Operation handbooks / handing over of all the know-how
TBS has the right to make visits on a regular time basis to verify whether the Franchisee is constantly applying the required standards and procedures.
The T-Bone Station franchising is targeted to entrepreneurs who are willing to operate personally their business entity, as well as to investors who provide funding for a business to be operated by third parties.
The entrepreneur who decides to work full time on this project is not required to hold a specific experience in the restaurant sector. However, he is required to be personally committed to the project.
Obviously, after a training period in an already operating TBS restaurant the entrepreneur will be able to effectively kick off the business activity. In addition to invest capital to set up a TBS restaurant, the entrepreneur must be really willing to join the T-Bone Station project because this one requires a large investment in terms of time and energy.
The entrepreneur who decides to work full time on this project is not required to hold a specific experience in the restaurant sector. However, he is required to be personally committed to the project.
Obviously, after a training period in an already operating TBS restaurant the entrepreneur will be able to effectively kick off the business activity. In addition to invest capital to set up a TBS restaurant, the entrepreneur must be really willing to join the T-Bone Station project because this one requires a large investment in terms of time and energy.
The investor who joins the T-Bone Station Project on a different base than a self-employed entrepreneur can be only marginally involved in the project. He can hire a business manager who will be trained for the business management administration techniques in order to make him aware of the business evolution trend.
In any event, the Franchisee must comply with specific requirements:
• Set up a share company or a partnership
• Register at REC
• Get an authorization from the relevant authorities to sell alcoholic beverages and Table A drinks to be displayed
in the restaurant.
In any event, the Franchisee must comply with specific requirements:
• Set up a share company or a partnership
• Register at REC
• Get an authorization from the relevant authorities to sell alcoholic beverages and Table A drinks to be displayed
in the restaurant.
The Type of Premises
The location of the business activity must necessarily hold specific characteristics as:
• Local capital towns
• Roads or squares in down-town crowded areas
• Presence of offices or shopping areas
• The type of premises must have a high level image and must comply to specific technical requirements as:
- The surface of the premises must range from 250 sq. m. to 400 sq. m.
- The minimum height of the premises must range from 2.7 m. to 3.0 m.
- The premises must be equipped with smokestack or be pre-arranged for smokestacks
The location of the business activity must necessarily hold specific characteristics as:
• Local capital towns
• Roads or squares in down-town crowded areas
• Presence of offices or shopping areas
• The type of premises must have a high level image and must comply to specific technical requirements as:
- The surface of the premises must range from 250 sq. m. to 400 sq. m.
- The minimum height of the premises must range from 2.7 m. to 3.0 m.
- The premises must be equipped with smokestack or be pre-arranged for smokestacks
- Minimum 45 Kw Electric power supply
- Minimum 60,000 Kcal gas supply
- Connection to water supply grid and adequate sewage disposal system
The Investment
Obviously, investment must take into account the situation of the premises and of facilities. A typical premise can have an overall Euro 1,300 – 1,500 turnkey cost per sq. m. Renovation and equipment must be financed by direct capital investment. The furniture and equipment costs can be leased; approx. a 60% share of investment must be funded by the entrepreneur and 40% by a leasing contract.
- Minimum 60,000 Kcal gas supply
- Connection to water supply grid and adequate sewage disposal system
The Investment
Obviously, investment must take into account the situation of the premises and of facilities. A typical premise can have an overall Euro 1,300 – 1,500 turnkey cost per sq. m. Renovation and equipment must be financed by direct capital investment. The furniture and equipment costs can be leased; approx. a 60% share of investment must be funded by the entrepreneur and 40% by a leasing contract.
In addition to the Real Estate investment, at contract signature, the Franchisee is required to pay a Euro 25,000 entrance fee to T-Bone Station as a support provided by TBS during design and pre-kick off phase. The other payments due by the Franchisor are linked to business performance and computed on net turn over.
It is possible to estimate a Euro 600,000 to 1.2 m. turn over and performance on the grounds of the statements above, of a wise choice for the location - made with the support of TBS representatives and in line with the strong appeal of the brand - the size and the location of the TBS sales point.
It is possible to estimate a Euro 600,000 to 1.2 m. turn over and performance on the grounds of the statements above, of a wise choice for the location - made with the support of TBS representatives and in line with the strong appeal of the brand - the size and the location of the TBS sales point.
The Franchisor Services
TBS will provide the Franchisee with the services below:
• Handing over of the right for using the T-BONE STATION brands and sign on a territorial based exclusivity
• Support for the choice of the location
• Exclusive module of the premise
• Provision of turn-key equipment and furniture
• Possibility to use special agreements with leasing companies for instrumental assets and for funding
premises renovation
• Operational support at sales point opening
TBS will provide the Franchisee with the services below:
• Handing over of the right for using the T-BONE STATION brands and sign on a territorial based exclusivity
• Support for the choice of the location
• Exclusive module of the premise
• Provision of turn-key equipment and furniture
• Possibility to use special agreements with leasing companies for instrumental assets and for funding
premises renovation
• Operational support at sales point opening
• Franchisee testing and training directly made by the Franchisor in the T-BONE STATION restaurants
• Training on a regular time basis
• Staff selection and labour contracts
• T-Bone Station know-how and operational handbooks that contain: recipes, machinery technical specifications,
food preparation and preservation process, promotional and marketing activity, etc...
• Exclusive F&B suppliers package
• Participation to the advertisement campaign for the sales point inauguration
• Institutional advertisement and participation to local and national events
• Assistance and support for market share preservation campaigns
• Web space for Franchisees on the T-BONE STATION web site
• Training on a regular time basis
• Staff selection and labour contracts
• T-Bone Station know-how and operational handbooks that contain: recipes, machinery technical specifications,
food preparation and preservation process, promotional and marketing activity, etc...
• Exclusive F&B suppliers package
• Participation to the advertisement campaign for the sales point inauguration
• Institutional advertisement and participation to local and national events
• Assistance and support for market share preservation campaigns
• Web space for Franchisees on the T-BONE STATION web site
Rules For The Franchisee
Throughout the contract duration, the Franchisee is committed to comply with the rules below:
• Non disclosure, and the most absolute secret about TBS procedures and know-how (non disclosure agreement)
• Use of TBS brands and image only and exclusively for the activity being part of the Franchising,
unless there is a specific authorisation from TBS
• Be committed to acquire and promote the T-BONE STATION philosophy
• Participate to training and refresh courses held by TBS
• Operate the activity with a number of staff adequate to the operational flow and in compliance to the standard
level of service
Throughout the contract duration, the Franchisee is committed to comply with the rules below:
• Non disclosure, and the most absolute secret about TBS procedures and know-how (non disclosure agreement)
• Use of TBS brands and image only and exclusively for the activity being part of the Franchising,
unless there is a specific authorisation from TBS
• Be committed to acquire and promote the T-BONE STATION philosophy
• Participate to training and refresh courses held by TBS
• Operate the activity with a number of staff adequate to the operational flow and in compliance to the standard
level of service
• Comply to collective labour contracts that regulate the various job positions and support to labour safety regulation
• Not promote through the contract duration and for one year after the contract expiration any activity that may be in competition with TBS
• Serve food and beverage indicated by the Franchisor after they have been processed as reported in the operational manuals procedures
• Provide that the qualitative level of service and supply are constantly in line with standards proposed by TBS
• Ask for written formal approval from the mother company for any modification made to the T-BONE STATION formula proposed by the Franchisee, as the menu, the image and everything concerning the sales point of the network
• Send reports on the activity implemented, monthly revenues, sales statistics, on a regular time base etc...
• Pay royalties on a regular time base (quarterly)
• Not promote through the contract duration and for one year after the contract expiration any activity that may be in competition with TBS
• Serve food and beverage indicated by the Franchisor after they have been processed as reported in the operational manuals procedures
• Provide that the qualitative level of service and supply are constantly in line with standards proposed by TBS
• Ask for written formal approval from the mother company for any modification made to the T-BONE STATION formula proposed by the Franchisee, as the menu, the image and everything concerning the sales point of the network
• Send reports on the activity implemented, monthly revenues, sales statistics, on a regular time base etc...
• Pay royalties on a regular time base (quarterly)
General Information
Main Contractual and Financial Conditions
• Contract duration: 5 + 5 years
• Exclusive sales area
Forbiddance of direct and/or indirect competition
The Franchisee must be committed to provide to be delivered any permission, authorisation and licence needed to operate the business.
Main Contractual and Financial Conditions
• Contract duration: 5 + 5 years
• Exclusive sales area
Forbiddance of direct and/or indirect competition
The Franchisee must be committed to provide to be delivered any permission, authorisation and licence needed to operate the business.
Financial information
• Entrance fee: Euro 25,000.00
• Royalties 5% of annual turn over, net of VAT
• 1% local advertisement contribution on the turn over net of VAT
Products and Supply Conditions
Only TBS official food and beverage suppliers’ products can be sold. The Franchisee will have particular discounts on the products to be supplied.
• Entrance fee: Euro 25,000.00
• Royalties 5% of annual turn over, net of VAT
• 1% local advertisement contribution on the turn over net of VAT
Products and Supply Conditions
Only TBS official food and beverage suppliers’ products can be sold. The Franchisee will have particular discounts on the products to be supplied.
Information on Decoration
T-BONE STATION will make it available to the Franchisee the T-BONE STATION premises design, the architect and the companies that will supply T-BONE STATION exclusive equipment and furniture; as an alternative, the Franchisee can submit a supplier who can provide the same type of materials required. However, such purchase must be specifically authorized
• The minimum surface of the premise must be equal to 250 sq. m.
• Timing to set up a T-BONE STATION restaurant is about 120 days
T-BONE STATION will make it available to the Franchisee the T-BONE STATION premises design, the architect and the companies that will supply T-BONE STATION exclusive equipment and furniture; as an alternative, the Franchisee can submit a supplier who can provide the same type of materials required. However, such purchase must be specifically authorized
• The minimum surface of the premise must be equal to 250 sq. m.
• Timing to set up a T-BONE STATION restaurant is about 120 days
Operational Details
The Franchisee has the obligation to keep the restaurant open the highest number of days authorised by Law both for lunch and dinner.
If, during an inspection by TBS representatives, significant deviations from TBS standards were detected, the Franchisee may be imposed the immediate discontinuation of activity in order to provide for immediate correction and to protect TBS reputation.
The Franchisee guarantees that the price list will be decided with the mother company and any subsequent modification will be submitted for approval. This is to keep a streamlined group business policy.
The Franchisee has the obligation to keep the restaurant open the highest number of days authorised by Law both for lunch and dinner.
If, during an inspection by TBS representatives, significant deviations from TBS standards were detected, the Franchisee may be imposed the immediate discontinuation of activity in order to provide for immediate correction and to protect TBS reputation.
The Franchisee guarantees that the price list will be decided with the mother company and any subsequent modification will be submitted for approval. This is to keep a streamlined group business policy.
