|
Thank you for your interest in our Kalácsoda® franchise network. I would like to provide some details about the concept of Kalácsoda® franchise network. As far as I know Kalácsoda® is the only concept producing chimney cake which works as a franchise network all over the world.
 Kalácsoda® is a registered trade-name in Hungary with its logo. We have been dealing with chimney cake since 2003. We have so far 12 mobile units settled on certain places, and we also started to develop the Kalácsoda® franchise network both in Hungary and abroad in 2007. Each unit of Kalácsoda® has uniform image. We are carrying on negotiations with serious connections from different countries.
The success of Kalácsoda® franchise network lies in the simplicity and reliability of the product with excellent quality, its well-tried recipe, and in that it utilities little capital investment. Our most important guiding principle is to provide all of our customers with high quality products. Our products are always freshly baked, and they are not put into circulation on the next day.
Definition of franchise: such a cooperation compact, in which the franchisor authorizes a valuable name (generally a registered trademark), as well as the belonging proven methods of his business to the franchisee for an obligatory fee.
A form of business organization in which a firm which already has a successful product or service (the franchisor) enters into a continuing contractual relationship with other businesses (franchisees) operating under the franchisor's trade name and usually with the franchisor's guidance, in exchange for a fee.
Definition of master franchise: Arrangement under which a franchiser grants a franchisee the right to appoint sub-franchisees within a specified geographical area.
Options
Master franchise
Our international expansion is planned only by the corporation with master franchisee partners. Their task is to build the network with respecting the content of the franchise contract and the manual. The amount of the entrance fee depends on the country. The entrance fee includes the rights for applying the name of the concept and building the network in the specified country, and the exclusivity as well. The master franchisee is expected to expand the network every year – see details below.
The master franchisee is expected to open a pilot shop of excellent quality, in which the training of the further franchisees’ technical staff will take place. It is of vital importance for the pilot shop to be a model indeed. The pilot unit can not be a mobile unit. Though, the master franchisee may have own mobile units as well.
Our suggestion for the franchisees is to open their units in malls, walking streets, and busy places like these. Mobile units should be used in weekly and country fairs, and different events, and such places where the temporary presence is reasonable. There is no need for building guest area as eating the chimney cake is rather a kind of moving activity.
The master franchisee should possess an own shop or a minimum 5-year-long lease contract for opening its own unit. The location and execution of the pilot unit should be approved by the Hungarian Kalácsoda® headquarter.
- Master entrance fee: differing according to the country, specific quotation
- Amount of initial investment: it does not contain the cost for leasing or buying and equipping the shop, only the cost of equipment required for operation provided by us (worth €5000)
- Duration of contract: 5 years, renewable for free of charge
- Royalty: 5% after each and every shop opened, min. €200/month
- franchisee’ fee: Our suggestion for the franchisee’ fee (paid for the master franchisee by franchisees) is €10000-15000. 30% of it must be paid for the Hungarian networks headquarter by master franchisee. 30% of the royality paid for the master franchisee by the franchisees also must be paid for the Hungarian headquarter and 70% will remain at the master franchisee. If the master franchisee is going to open an own shop, this entrance fee will not get to paying. However, the monthly royalty is obligatory after his own units: 5% after each and every shop opened, minimum €200/month has to be paid for the headquarter of the Hungarian centre.
- Minimum size of pilot unit: 25 m2, in accordance with the requirements of local authorities
- Size of mobile unit: 3.6m x 2.0m
- Marketing training for the master franchisee: 5 days
- Training for technical staff of 2 or 3 persons: 5 days, but it can be longer if required
Our suggestion for the master franchisee is to get acquainted the basic of how to make the chimney cake. Place of training: Debrecen, Hungary. Entrance fee contains only the cost of trainings, but not the costs of travel and accommodation during the training.
- Obligation of minimum number of units to open:
- 1st year: 2
- 2nd year: 3
- 3rd year: 4
- 4th year: 4
- 5th year: 4
If the master contract is automatically renewed after the first 5 year for further 5 years, 4 units should be opened every year. |
