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| HOW DO I BECOME A WARD'S FRANCHISEE? | ||||||||||||||||||||||||||||||||
| I. STARTING OUT | ||||||||||||||||||||||||||||||||
| Read the enclosed WARD'S literature. If you are interested in further pursuing a WARD'S franchise opportunity, call our office. We will schedule a personal meeting with you to discuss further questions and qualifications. | ||||||||||||||||||||||||||||||||
| II. INFORM YOURSELF AND QUALIFY YOURSELF | ||||||||||||||||||||||||||||||||
| Meet with a WARD'S representative for a question and answer session. At this time, WARD'S will begin to make assessments as to your qualifications. During the assessment process, you will be required to complete and return personal information and financial statement forms. If qualified, WARD'S will later give to you a copy of the U.F.O.C. and Franchise Agreement documents. These documents should be reviewed by yourself, your attorney, and your accountant to help you make your final decision. | ||||||||||||||||||||||||||||||||
| III. LEGAL | ||||||||||||||||||||||||||||||||
| If you choose to become a WARD'S franchisee, no sooner than ten (10) days after receiving your U.F.O.C. and Franchise Agreement documents, you will sign the appropriate documents and pay all the required fees. | ||||||||||||||||||||||||||||||||
| IV. SITE | ||||||||||||||||||||||||||||||||
| With WARD'S assistance and approval your location site will be selected. WARD'S will assist you in negotiations and in signing a construction agreement. An experience member of the WARD'S development team will be available during construction and will work closely with your contractor to ensure compliance with WARD'S image standards. | ||||||||||||||||||||||||||||||||
| V. EDUCATION AND TRAINING | ||||||||||||||||||||||||||||||||
| Complete the WARD'S management training program. | ||||||||||||||||||||||||||||||||
| VI. CONSTRUCTION AND EQUIPMENT DELIVERY | ||||||||||||||||||||||||||||||||
| Contractor commences building and site work upon receiving permits. Arrange equipment delivery to your site. | ||||||||||||||||||||||||||||||||
| VII. PEOPLE AND UNIT PREPARATION | ||||||||||||||||||||||||||||||||
| Hire store employees upon equipment delivery. New employees will be given an orientation to WARD'S by an Operation Representative. | ||||||||||||||||||||||||||||||||
| VIII. OPENING | ||||||||||||||||||||||||||||||||
| Open your unit. Arrange for your Grand Opening advertising to occur within 30 days after start of unit operations. | ||||||||||||||||||||||||||||||||
| FRANCHISE SERVICES top | ||||||||||||||||||||||||||||||||
| Ward's Food Systems, Inc. offers a source of continuing support to the Franchisee. Each store is assigned a Franchise Consultant. The role of the Franchise Consultant is two-fold. The primary function is to provide consultation services in all areas of your restaurant, including, but not limited to, food and labor costs, inventory and cash control, customer service, store marketing, capital equipment purchases, and training. | ||||||||||||||||||||||||||||||||
| The secondary function of the Franchise Consultant is that of compliance. In this role the Franchise Consultant makes certain that the approved menu is being served, and that all menu items are prepared, assembled, and presented in the prescribed manner. The Franchise Consultant also insures that the physical properties are properly maintained. | ||||||||||||||||||||||||||||||||
| The Franchise Consultant communicates with your store manager on a weekly basis and periodically meets with your store manager to provide necessary instructions on policy and procedures. If requested by the store manager or owner, the Consultant gives instructions to the crew members during store visits. Individual meetings are also conducted with owners to discuss the state of their franchise operations. The Franchise Consultant makes evaluations of the store's facilities and operations on a periodic basis, filing a report with the store manager and owner. If the owner or store manager needs the help of the Franchise Consultant at an unscheduled time, the Consultant will be available to solve immediate problems. | ||||||||||||||||||||||||||||||||
| SITE SELECTION top | ||||||||||||||||||||||||||||||||
| The right location is very important to the success of your new restaurant. WARD'S will offer you assistance through counseling and advice when purchasing your building sire. A company representative will help you conduct a complete study of the location. Special attention will be paid to traffic flow, population density, accessibility, and other important variables that influence the success of the business. The cost of choice commercial property can vary widely depending on the size of the city and the location of the desired site. The minimum dimensions of the WARD'S traditional store site are approximately 125 frontage feet and 200 feet in depth. | ||||||||||||||||||||||||||||||||
| Some franchisees may choose to lease the land and building instead of erecting a building themselves. This may be done upon WARD'S approval of the site and provided that you can satisfy the security requirements of the lessor. For qualifying properties, Ward's Food Systems, Inc. may consider purchasing and constructing the building and leasing to the franchisee. | ||||||||||||||||||||||||||||||||
| TRAINING, RESEARCH AND DEVELOPMENT top | ||||||||||||||||||||||||||||||||
| TRAINING: | ||||||||||||||||||||||||||||||||
Your training, and that which you give your employees, is essential to serving your customers successfully. Ward's Food Systems, Inc. provides a comprehensive training program for new owners and managers. The basic management training program is mandatory for each new unit. The formal training program is held at varying locations. This exposes the trainees to multiple situations and different volumes of operating capacity. There is no cost for the program; however owners and managers are responsible for their own travel, lodging and food expenses. | ||||||||||||||||||||||||||||||||
| A comprehensive Operations Manual is provided for each new restaurant. The Operations Manual contains specific operations, procedures and general management information concerning the Ward's system. | ||||||||||||||||||||||||||||||||
| Each new restaurant receives help with the pre-opening training of employees from a Ward's Food Systems, Inc. representative. This helps to insure a smooth store operation. | ||||||||||||||||||||||||||||||||
| RESEARCH AND DEVELOPMENT: | ||||||||||||||||||||||||||||||||
Ward's Food Systems, Inc. is continuously searching for new products, equipment, and ideas, as well as keeping abreast of changes and standards in the food industry. | ||||||||||||||||||||||||||||||||
| Developing more efficient procedures and evaluating menu recipes and food presentation helps to reduce operating costs, enabling Ward's Franchisees to better serve their customers with quality products. | ||||||||||||||||||||||||||||||||
| FRANCHISEE'S ESTIMATED INITIAL INVESTMENT top | ||||||||||||||||||||||||||||||||
| TRADITIONAL | ||||||||||||||||||||||||||||||||
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| NOTES TO ESTIMATED INITIAL INVESTMENT | ||||||||||||||||||||||||||||||||
| TRADITIONAL | ||||||||||||||||||||||||||||||||
| 1. A part of the purchase price of the signs and equipment may be financed by the Franchisee on the terms determined by his financial strength. | ||||||||||||||||||||||||||||||||
| 2. This sum is to cover salaries and living expenses while attending the WARD'S training program. | ||||||||||||||||||||||||||||||||
| 3. The Franchisee will have to acquire the real estate from which to operate his store by either purchase or lease. The cost of a new building will be approximately $300,000.00 - $350,000.00, plus site work. The land cost will vary with the area in which the store is constructed. Normally, the minimum size building site is 125 feet by 200 feet. If the site is leased, the rental will be approximately 1% of the total cost of land and construction or remodeling. These figures are strictly estimates and are provided for information only. Costs will vary depending upon your location. | ||||||||||||||||||||||||||||||||
| 4. Balance of your nonrecurring expenses, working capitol and miscellaneous are the following: | ||||||||||||||||||||||||||||||||
| A. Utility deposits and electrical bond | ||||||||||||||||||||||||||||||||
| B. Permits and licenses | ||||||||||||||||||||||||||||||||
| C. First month's rent and real estate taxes | ||||||||||||||||||||||||||||||||
| D. Help wanted ads | ||||||||||||||||||||||||||||||||
| E. Store insurance deposit | ||||||||||||||||||||||||||||||||
| F. Uniforms | ||||||||||||||||||||||||||||||||
| G. Opening registers cash and store bank | ||||||||||||||||||||||||||||||||
| * Investment information will vary depending on location, size of facility, and equipment choices. | ||||||||||||||||||||||||||||||||
| ** Both Traditional and Non-Traditional locations are required to pay a reoccurring 5% monthly royalty fee and a 1% advertising fee. All fees are computed on net sales. | ||||||||||||||||||||||||||||||||
| FRANCHISEE'S ESTIMATED INITIAL INVESTMENT | ||||||||||||||||||||||||||||||||
| NON-TRADITIONAL | ||||||||||||||||||||||||||||||||
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| NOTES TO ESTIMATED INITIAL INVESTMENT - NON-TRADITIONAL | ||||||||||||||||||||||||||||||||
| 1. Ward's provides the services of a Franchise Consultant and an opening training crew to assist the Franchisee's staff. | ||||||||||||||||||||||||||||||||
| 2. This sum is to cover salaries and living expenses while attending the WARD'S training program. | ||||||||||||||||||||||||||||||||
| 3. Balance of your nonrecurring expenses, working capital and miscellaneous are the following: | ||||||||||||||||||||||||||||||||
| A. Utility deposits and electrical bond | ||||||||||||||||||||||||||||||||
| B. Permits and licenses | ||||||||||||||||||||||||||||||||
| C. First month's rent and real estates taxes. | ||||||||||||||||||||||||||||||||
| D. Help wanted ads. | ||||||||||||||||||||||||||||||||
| E. Store insurance deposit | ||||||||||||||||||||||||||||||||
| F. Uniforms | ||||||||||||||||||||||||||||||||
| G. Opening registers cash and store bank | ||||||||||||||||||||||||||||||||
| COMMONLY ASKED QUESTIONS AND ANSWERS top | ||||||||||||||||||||||||||||||||
| Q. How much in liquid funds is needed to purchase my Ward's Franchise? | ||||||||||||||||||||||||||||||||
| A. Generally, you will need 10% - 30% of your investment in cash, with balances financed over a 5 to 10 year period. | ||||||||||||||||||||||||||||||||
| Q. What is the term of the Franchise Contract? | ||||||||||||||||||||||||||||||||
| A. For Traditional stores the initial term of the contract is 20 years, with renewal options available. Non-Traditional stores have a term of 10 years, with renewal options available. | ||||||||||||||||||||||||||||||||
| Q. What is the difference between a Traditional location and a Non-Traditional location? | ||||||||||||||||||||||||||||||||
| A. A Traditional location operates as a free standing location. A Non-Traditional location operates in conjunction with another business establishment, usually a convenience store or gas station. Non-Traditional contracts are usually purchased in bulk for multiple locations. | ||||||||||||||||||||||||||||||||
| Q. Why is there a difference in the term length of the Franchise Contract for Traditional and Non-Traditional locations? | ||||||||||||||||||||||||||||||||
| A. This is due to the life expectancy of the locations. The life expectancy for a Traditional free standing store is 20 years. A Non-Traditional location has a life expectancy of 10 years due to the outside factors that influence its operation. | ||||||||||||||||||||||||||||||||
| Q. Do you provide help in selecting a site? | ||||||||||||||||||||||||||||||||
| A. Yes. Ward's Food Systems, Inc. will help you evaluate potential locations. After a thorough evaluation, a site recommendation will be made. If multiple locations are approved then you will be given a choice between locations. However, your location must be approved by Ward's Food Systems, Inc. | ||||||||||||||||||||||||||||||||
| Q. Do you supply plans or recommendations for construction? | ||||||||||||||||||||||||||||||||
| A. Yes, standard building plans are available through Ward's Food Systems, Inc. These plans will have to be approved by local government. However, no changes may be made without the written consent of Ward's Food Systems, Inc. | ||||||||||||||||||||||||||||||||
| Q. How long will it take to get into business? | ||||||||||||||||||||||||||||||||
| A. Depending on the location you choose, it should take from 3 to 6 months. | ||||||||||||||||||||||||||||||||
| Q. Do you specify an equipment manufacturer? | ||||||||||||||||||||||||||||||||
| A. Yes, we have a list of approved manufactures, from which you can purchase the equipment and supplies. | ||||||||||||||||||||||||||||||||
| Q. Do I purchase my food and supplies from Ward's Food Systems, Inc. or from an independent distributor? | ||||||||||||||||||||||||||||||||
| A. From an independent distributor. You are furnished with a list of independent distributors who are authorized to sell approved products. | ||||||||||||||||||||||||||||||||
| Q. Do you have a predetermined menu to which I must adhere? | ||||||||||||||||||||||||||||||||
| A. Yes, Ward's Food Systems, Inc. has a mandatory menu program. | ||||||||||||||||||||||||||||||||
| Q. Is there a standardized Ward's uniform? | ||||||||||||||||||||||||||||||||
| A. Yes, Ward's Food Systems, Inc. has a mandatory uniform and dress requirement. | ||||||||||||||||||||||||||||||||
| Q. Are the Franchise or Royalty fees negotiable? | ||||||||||||||||||||||||||||||||
| A. No. All fees are non-negotiable. | ||||||||||||||||||||||||||||||||
| Q. Do you provide assistance when I open my restaurant? | ||||||||||||||||||||||||||||||||
| A. Yes. Before opening for business, Ward's Food Systems, Inc. representatives will assist you in training your crew. We provide a special opening crew to assist in the store opening. Your franchise consultant will then make periodic contact with you regarding the continued operation of your restaurant. | ||||||||||||||||||||||||||||||||
| Q. What if I sell my restaurant? | ||||||||||||||||||||||||||||||||
| A. A franchise restaurant may be bough and sold in regular business transactions, only with the prior written approval of Ward's Food Systems, Inc. | ||||||||||||||||||||||||||||||||
| Q. What if there are questions not answered here or special circumstances that I want to discuss? | ||||||||||||||||||||||||||||||||
A. Just write or call: Ward's Food Systems, Inc. 5293 Old Hwy 11 Hattiesburg, MS 39402 1-800-748-9273 |
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| WHAT TO DO NEXT top | ||||||||||||||||||||||||||||||||
The first order of business is to arrange for a personal interview at the offices of Ward's Food Systems, Inc. After your initial interview, you will request and complete the confidential financial information packet and return it to Ward's Food Systems, Inc. Upon review of data obtained during your initial interview and through your financial packet, Ward's Food Systems, Inc. will make the final decision on your acceptability as a franchisee. You will then be provided with a copy of the Uniform Franchise Offering Circular. Federal Trade Commission regulations and certain state statues require that you have sufficient time to read this circular before you sign any contract or pay any sum of money toward a franchise. | ||||||||||||||||||||||||||||||||
| Good luck to you in acquiring your WARD'S FRANCHISE. Thank you for considering our system for your future investment. | ||||||||||||||||||||||||||||||||
