Adda Franchise Document

7/28/2019 Adda Franchise Document

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A M P M F o o d s ( P ) L t d . Page 2

Contents

Foreword ..................................................................................................................................................3

About the company ...................................................................................................................................4

What is ADDA all about? ............................................................................................................................6

1) The name ADDA and the concept ...................................................................................................6

2) The choice of menu ...........................................................................................................................6

3) The GREEN MENU............................................................................................................................7

Modes of franchisee ..................................................................................................................................8

1) Stand-in Model ..................................................................................................................................8

2) Park-in Model ....................................................................................................................................9

3) Dine-in Model ....................................................................................................................................9

What we offer? ....................................................................................................................................... 11

1) Administrative Set-up ...................................................................................................................... 11

2) Marketing Set-up ............................................................................................................................. 11

3) Financial Set-up ............................................................................................................................... 12

Why buy ADDA franchise ......................................................................................................................... 13

The advantages of a franchise business to a franchisee ......................... .......................... ........................ 14

1) Receiving specialist training ............................................................................................................. 14

2) Using an established brand name .................................................................................................... 14

3) Reducing business risks.................................................................................................................... 14

4) Benefiting from research and support .......................... .......................... ......................... ................ 14

5) Introducing New Products or Services ........................... .......................... ......................... ................ 14

6) Geographical Area ........................................................................................................................... 15

7) Advertising and promotional support .............................................................................................. 15

8) Proven business format ................................................................................................................... 15

9) Bulk Purchasing ............................................................................................................................... 15

10) Instant recognition ........................................................................................................................ 15

Financial Analysis .................................................................................................................................... 16

Conclusion ............................................................................................................................................... 17

Questionnaire ......................................................................................................................................... 18


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Foreword

Modern civilization has advanced by leaps and bounds. The current scenario

demands for advancement and improvement in every sphere of life. The increasing

saturation in the jobs and companies has changed the conventional pursuit to turn

towards self-employment. According to a recent survey, an increase of 45% has been

found in the number of people going for business, in the last decade. But, one more

fact lies that more than 40% of the businesses fail due to several reasons viz. lack of a

good plan, improper management, inefficient customer interaction, poor market

image etc. In such a case, a need arises of a proper mentor to guide and support for

proper functioning and be with you with a continuous guidance and assistance. The

biggest vertical which comes in the way of establishment is the tough competition by

other brands. This problem increases with the saturation in the business, where

there is a huge range of competitors which results in numerous choices and creates

tough competition in the market. This is where the concept of Franchising works. It

can be seen in developed countries where there is high saturation in business

prospects and aspects, franchising concept is very common. If we take the example of

the U.S., more than half of the businesses run on franchise model. India, being adeveloping country is also facing the same kind of problem, as due to uneven

distribution, a few domains are fully developed while others are developing. Food

industry is a developed industry in India and well known too for the popularity and

potential. In the same domain, we offer you a concept, a business proposal based on

franchise model, which is a gateway to turn your dreams to reality, of being an

entrepreneur and a prestigious business person.


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About the company

Any entitys prospect is largely decided by its foundation; the stronger it is the

better the capabilities and skills to fight with the odds. ADDA also has found its root

in AMPM Foods (P) Ltd. company which is a veteran in the food and restaurant

industry. ADDA is entirely owned and run under the umbrella of AMPM Foods (P)

Ltd. It has vast experience in running varieties of food chains, restaurants and

canteens. AMPM Foods (P) Ltd. has been working in food and hospitality industry

since more than 5 years and has gained its expertise through different business

scenarios. AMPM Foods has run one of the well renowned restaurants in Lucknow

and nearby places. The success and experience achieved in the above restaurants

helped AMPM Food industry to receive offer to establish canteens in one of the most

prestigious daily newspapers, Times of Indias offices. AMPM Foods has been running

its canteen in most of the offices of Times of India. In result of all its work and

professionalism, AMPM Foods has received many accolades.

Riding onto their success, AMPM Foods decided to open their own retail food

chain with the brand name of ADDA. The retail store ADDA has been successfully

running on Kapoorthala, Lucknow since last 2 years. Additional information on

ADDA has been provided in next heading.

AMPM Foods (P) Ltd. has always been actively participating in promotional and

sponsorship activities for the expansion of its brand name. It has sponsored various

dance competitions and other cultural activities for the consistent flourishing of its

brand image. These activities are done every year under the brand name of ADDA.

Apart from all these business activities AMPM Foods (P) Ltd. has extracted time

and resources to serve needy people of our society. AMPM Foods has been active in

so called Corporate Social Responsibility, CSR, for a long time. AMPM Foods is

currently running an Educational Welfare Society which is focused on providing

proper educational guidance, training and materials to the poor and needy children.


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Being one of the only few food sector players engaged in such social activities, AMPM

Foods takes pride in what they are able to add to the society


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What is ADDA all about?

ADDA is a food joint, basically dealing with ready to eat food ranging from

quality snacks such as Burgers, Pizzas, Pasta, Grilled Sandwiches, Maggi to shakes,

coffee, tea and beverages. The concept, as the name sounds very catchy to common

gentry, hence, provides us a unique image in the market. The system can work on a

kiosk, dine-in or take-away model. Since inception, we have enjoyed the status of a

food joint providing hygienic, economical and tasty food and therefore, challenging

the competitors.

We would like to introduce ourselves as one of the upcoming brands in India in

food industry. We have a food menu thats a favorite, not just among the youth but

also the older generations. We have a variety in menu which attracts specific masses

in specific specialty. It is heart-warming to see the way people of all ages from

different walks of life congregate here. We believe in serving our patrons with the

best and consistent quality food. For that, we use the best, freshest and top-of-the-

line ingredients as well as the machinery. We try to create an unforgettable

experience for you through our foods and for that we have the best in kitchen as well

as the wait staff.

Our unique selling point(USP) lies in three things:

1) The name ADDA and the concept

The name itself creates an image in the mind and it takes no longer to be the favorite

place of anyone passing by or living near-by. Our set-up also reflects the same

structure and the place remains full of customers throughout.

2) The choice of menu

The food items we serve are mostly those snacks which are among the favorites of

maximum crowd of todays generation. We offer the best quality, hygiene and taste,


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which keeps our customers attached with us and the bond becomes the same as of

food and stomach

3) The GREEN MENU

The GREEN MENU comprises of a special variety of food items specially focused on

the health conscious class of the society. The GREEN MENU is a resultant of the

exhaustive and tedious research of our R&D team, which finally was able to bestow

us with a menu, which is tasty as well as healthy. The GREEN MENU is prepared

with special ingredients and is very popular among the gyms, hospitals, schools as

well as the common masses.


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Modes of franchisee

We offer our clients flexibility in choice, while deciding, which domain of and in

what budget they want to invest and the mode of franchisee they are interested in.

We have developed three different models of franchise. Each model is special in its

own kind and has its own features and specialty. The different models are targeted

on different set-ups and different crowd. However, there is a difference in costs, but

that is just because of the type of the model which depends on the target class of

people, locality, market scenario etc.

We offer franchise in three models:

1) Stand-in Model2) Park-in Model3) Dine-in Model

1) Stand-in Model

This is the most basic and the most compact model. It is basically a kiosk set-up.

It has the smallest of all set-ups having a diversified variety of food products. The

other features of this franchise are given as follows:

Space Required: 80-120 sq ft. Total Investment Range: Rs. 3 lacs (approx.) Ideal locations:

1. Hi-Street/Crossroads2. Residential Colonies3. Markets4. Schools/Colleges5. Malls/Multiplexes6. Airports/Metro Stations/Railway Stations


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2) Park-in Model

This is the secondary phase model, an ideal set up for an outdoor seating plan. It is an

open-air food joint model providing variety of fast foods. The ambience creates a

high impact and makes the place a perfect one to hang out. The other features of this

franchise are given as follows:

Space Required: 120-200 sq ft. Total Investment Range: INR 5 lacs (approx.) Green Menu Ideal locations:

1. Markets2. Highways/Crossroads3. Schools/Colleges4. Corporate Offices/ IT Parks.5. Hospitals/Food-Court6. Airports/Metro Stations/Railway Stations/Bus Terminals

3) Dine-in Model

The dine-in model is the most advanced model having maximum features. The

concept is based on dine-in set up. It consists of a covered area with a full fledged

dine-in model. It covers the maximum variety in menu. The other features of this

menu are given as follows:

Space Required: 220-500 sq ft Total Investment Range: INR 7 lacs (approx.) Green Menu Ideal Locations:

1. Markets and Malls2. Hi-streets3. Office and college Canteens


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Structure of different franchisee models

EQUIPMENTS Dine-In Park-In Stand-In

Pizza oven 30000 20000 8000

Deep frier 20000 10000 8000

Griller 20000 10000 9000

Momo streamer 5000 3000 1500

Hot Plate 15000 8000 4000

Blender 15000 12000 6000

Electric sub meter 1500 1500 1500

Dustbin 6500 5000 1000

Trays 6000 4000 1000

Disposables 20000 12000 5000

Freeze 30000 17000 FOC

Deep freezer 36000 24000 12000

TEA & COFFE MACHINE FOC FOC FOC

Design & Furniture 250000 150000 50000

Software & Hardware 60000 50000 40000

BRAND FEES 150000 150000 150000

UTENSILS 10000 8500 3000

WATER DISPENSOR 25000 15000 N/a

TOTAL 700000 500000 300000


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What we offer?

We offer a business proposal, which has a potential to make dreams come true

for a true entrepreneur. ADDA, being a brand, with progressive growth provides an

opportunity to grow and develop sound business skills and of course, promises big

profits.

Being a franchisee of ADDA, provides a privilege to be part of a brand, as well as

gives a high stature in the society. Our vision is to be a world renowned business

point and to raise our brand value to a higher level.

We offer following services under definite domains:

1) Administrative Set-up

Brand Recognition Software/Hardware Equipments Interior/Exterior designs & set up Transportation Manpower resource Management Employee uniforms Training & Assessment

2) Marketing Set-up

Advertisement

Social media marketing Providing Schemes and Offers Conducting occasionally events Membership Management


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3) Financial Set-up

Accounts management Inventory management Auditing(Analysis of monthly sales and set the target for the next month)


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Why buy ADDA franchise

Franchising is a business which has a substantial risk minimization from other

businesses. All the studies ever carried out show the success rate of sole trade

business start-up conclude to the same thing. Starting a new business is very

dangerous. Most of the studies show 90% fail within three years. The primary reason

for this failure rate is so high because the owners have to go through the learning

curve of operating that specific type of business. However, the market is not very

tolerant for these inexperienced entrepreneurs to learn how to operate a new

business. If you can't survive in the market place you will lose your money, credit,

home, reputation and in some cases your family. Thousand of business men

experience this every year. Unless you have considerable experience in the specific

type of business that you are considering going into, it is very probable that you fail.

Business format franchising is the nearest you will come to a guarantee of success in

today's market. All of the studies done have found the franchise new business start-

ups rarely fail and when you do it is because the franchisee did not obey by the

franchisors system. The learning curve of trying and failing and eventually leading to

trying and succeeding has already been achieved by the franchisor in the form ofsecrets of success for the specific business. In business format franchising all that has

been learned by going through the learning curve is transferred to the franchisee.

This is fundamentally why you buy a franchise, to minimize risk and give yourself the

best possible chance to succeed. Another reason why to buy a franchise is that a

franchise investment can be thoroughly researched before any significant

expenditure is made. With a sole trade business you are always operating in the dark

and no matter how much research you do it is very difficult to handle many aspects.

With a franchise business the franchisee is provided with a wealth of information

about the business by the franchisor. i.e. prepare best personality traits for the

business. But for the true answer to all your key questions will come from existing

franchisees. i.e. Do you feel you were properly trained.


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The advantages of a franchise business to a franchisee

1) Receiving specialist training

Franchisees receive initial and continued specialized training programmes

which enables new and inexperienced franchisees to become competent operators

within their chosen business. This benefits both the franchisee and franchisor.

2) Using an established brand name-

Many franchisors have established themselves as a brand name, such as

McDonald's and Prontaprint. A franchise with such a company immediately providesyou with a nationally held reputation on which to build your business.

3) Reducing business risks

The reduction of business risk is quite outstanding compared to a sole

proprietor as the success rate is currently eight out of ten compared to an eight out

of ten failure rate for independent businesses. A franchise business is one of the

safest ways to run your business but it is not completely risk-free.

4) Benefiting from research and support

Franchisors are large enough to have their own specialist departments, for

example marketing, accounting and research. Franchisees will have access to all of

these resources. Franchisees will also receive help, advice and support on how to run

and develop their business.

5) Introducing New Products or Services

The costs associated with research and development leading to the introduction

of new products or services are carried out by the franchisor. This allows franchisees

the use of trademarks, copyrights, patents and trade secrets. These all factors

increase the credibility of the franchisee in developing their own business.


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6) Geographical Area

Franchisees are given a geographical area knowing there won't be another

franchise by the same firm within the area. A detailed research is also carried out

putting in mind all the demographic and social constrains and proper improvisation

is done accordingly.

7) Advertising and promotional support

The franchisees will benefit from this especially as advertising will take place

both locally and nationally by the franchisor. The franchisee may have to pay a small

percentage to the franchisor for these services.

8) Proven business format

The franchise business is proven to be success as it is presumably well

established and well known. There is also tried and tested product or services and a

set of established guidelines which avoid major problems in the start-up period.

9) Bulk Purchasing

Better terms will be agreed through the franchisor as mainly all the businesses

of the same franchise are purchasing from a central point which leads to significant

discounts being negotiated by the franchisor and franchisee.

10) Instant recognition

The design of the premises looks the same throughout the world so it will be

recognized by tourists very easily. Ex- McDonald's, Subway etc.

Also the franchiser works on promotion of the name which is also beneficial to the

franchisee.


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Financial Analysis

MODES OF FRANCHISE STAND IN PARK IN DINE IN

80-120 120-180 180+

Capital Investment 3,00,000 5,00,000 7,00,000

Sales/Day 4,000 7,000 10,000

Monthly sales 1,20,000 2,10,000 3,00,000

Running expenditure (-) 48,000 84,000 1,20,000

Rent (-) 10,000 15,000 20,000

Electricity (-) 3,000 5,000 9,000

Salary (-) 10,000 15,000 25,000

Internet (-) 1,000 1,000 1,000

Dry stock (-) 2,500 4,500 6,000

TOTAL EXPENDITURE (-) 74,500 1,24,500 1,81,000

Monthly Profit 45,500 85,500 1,19,000

Annual Profit 5,46,000 10,26,000 14,28,000

Promotional Charges (-) 40,000 75,000 1,00,000

GROSS PROFIT ANNUAL 5,06,000 9,51,000 13,28,000

BREAK EVEN POINT 30 Weeks 27 Weeks 24 Weeks


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Conclusion

Overall, analysis says that food industry is a continuous growing sector in the

country promising a reliable model and high returns. It requires a very simple

approach, if systemized properly. The franchising concept is within itself a low risk

and high gain oriented model and is a very common business in developed countries.

With the saturation of the scope in developing countries like India, it is likely to grow

at a phenomenal rate.

ADDA offers a sophisticated and well proved business models franchise, which

is worth considering. It is the perfect business model to invest in to sustain in the

long run. The upcoming market scenario supports the franchise model and is very

willing to welcome it. It is the most promising business in near future. We respect the

bond between the franchiser and franchisee. We believe in uphill struggle and

anticipate the same to strive towards perfection in order to achieve and enjoy mutual

benefits and grow in the market.


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Questionnaire

Just to know you a little better, we will like you to devote some amount of time filling this

form. This is just to comprehend your needs and mix them up with our resources to give you

services which are most apt for you. We appreciate your time in filling up the form!

1) Have you previously owned any business? Yes No

Note- If answer is yes, then go through question 2, 3, 4, and 5. If answer is no, jump to question

number 6

2) If yes, please name your business and related industry_________________________________

3) What was the scale of your business (No. of offices, warehouses) _______________________

4) What was the number of employees? 1-3 4-6 7-10 More than 10

5) Annual turnover ____________

6) Would you be running ADDA as a part time of business or this will be your sole business?

(Mention specific reasons, if any)

______________________________________________________________________________

7) How do you rate retail food industry in India?

Going down Little successful Scope for improvement Highly Vibrant

8) What according to you is the biggest plus point for food and restaurant industry?

Low investment Interesting business High potential Any other __________

9) What is your investment range?

2-4 lacs 5-7 lacs 8-10 lacs More than 10 lacs

10) How can you help ADDA strengthen its brand?

______________________________________________________________________________

11) Give us some point as how you will be promoting your store?

______________________________________________________________________________


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12) What is the most important quality of ADDA that attracts you?

Low Investment Novel Concept Promising Returns Low Liability

All of these Any Other ____________________________________ (Please specify)

(Kindly, fill the above questionnaire and mail it to us at [email protected])

Documents

Adda Franchise Document