Garlic Jim's Famous Gourmet Pizza Owner's Manual Confidential Owner's Manual Copyright 2015 GJ Franchise Systems, Inc 1 CONFIDENTIAL – DO NOT DISSEMINATE Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Table of Contents Page 2 Chapter 1: Welcome, Philosophy & 20 Steps to Opening Day Page 3 Chapter 2: Getting Ready – General Business Tasks Page 12 Chapter 3: Real Estate Process & Forms Page 21 Chapter 4: Construction & Equipment Page 54 Chapter 5: Marketing – Pre-Opening & Post-Opening Page 59 Chapter 6: The Nine Weeks to Open Guide Page 66 Chapter 7: Food Distribution Page 112 Chapter 8: Reporting & Recordkeeping Page 114 Chapter 9: Training & Continuing Education Page 118 Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 2 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Chapter 1: Welcome, Philosophy & 20 Steps to Opening Day CEO Welcome Letter Mission Statement Company Philosophy Business Philosophy The 20 Steps to Opening Day Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 3 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Dear New Franchisee: Hello and welcome to the Garlic Jim’s family! You’ve just purchased your franchise and I’m sure you’re excited to get going and get your store opened as soon as possible. This book is your first resource to getting that done. The Owner’s Manual will give you some of Garlic Jim’s business philosophy, detail the 20 steps to opening, provide you with names and contacts for specialists you’ll work with, and lay the foundation for other Garlic Jim’s material and training such as our comprehensive Policy and Procedures Manual, the Garlic Jim’s University of Pizzaology ™, Garlic Jim’s franchise resource webpage and more. We have worked hard to develop a system that guides you through this unfamiliar and sometimes bumpy road of opening a restaurant. Our system is meant to accomplish several goals; help to get your store opened as soon as possible, make sure the costs are as low as possible, ensure you are trained and ready for business, and do everything we can to make the phone ring from minute one! Your best chances for success are by following the guidance in this book, listening to and asking questions of your franchise consultant, and by immersing yourself in the training process. Learn all you can, work hard and utilize our proven successful system and you too will find success as those before you have. Again, thank you for choosing Garlic Jim’s and welcome aboard. Now the fun starts! Dwayne Northrop Dwayne Northrop Founder Garlic Jim's Famous Gourmet Pizza Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 4 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Garlic Jim’s Famous Gourmet Pizza Mission Statement Garlic Jim’s is dedicated to making every day takeout meals extraordinary. Our ultimate goal is to hear every customer say “WOW!” We will strive for this goal by coaching our team members to provide nothing but the highest quality of pizza products, exceptional customer service, and timely, safe delivery. Garlic Jim’s Famous Gourmet Pizza Company Philosophy At Garlic Jim’s we believe in open and honest communications between owners, management and all team members. We believe that a well-trained, motivated crew with management that listens and communicates well will hold themselves to the highest standards. Team members will feel a sense of pride and be accountable to Garlic Jim’s customers - not just their managers. Our employees are our biggest asset. These team members will help us grow to be the best pizza chain in the world! Gourmet . . . Right Away!sm Gourmet…. Right Away! is not only a catchy slogan. It is what we believe will make us stand apart from the other pizza companies in the market. It is important to remember and truly know what this slogan means all the time. GOURMET: When we use the word "gourmet", we are not just throwing around a term that sounds good. We also do not mean that “gourmet” is simply referring to exotic toppings on a tasteless crust. In fact, when Garlic Jim’s uses the word “gourmet”, we are referring to the very basics of our pizza. Our dough is prepared every day and made with the best combination of ingredients to provide our customers a crust that is worthy to be eaten by itself. Our sauce is always from fresh pack. This provides the actual red color and authentic tomato taste that many competitors simply do not have. Next is the cheese: Garlic Jim’s uses only FRESH 100% WHOLE MILK MOZZARELLA! Lastly, all of our toppings are premium and top of the line. Put these all together and this makes for a truly gourmet pizza. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 5 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 RIGHT AWAY: The “right away” in our slogan symbolizes the emphasis that we put on our customer service policies. Our stores are designed to produce gourmet pizza quickly, providing our carry-out customers and our delivery drivers pizzas within minutes of receiving an order. Garlic Jim’s drivers are trained that safety on the road is their number one priority while delivering pizza to our customers in the most efficient manner possible. This “right away” motto should be kept in mind while realizing that EVERY customer is the most important customer. Garlic Jim’s Famous Gourmet Pizza Business Philosophy At Garlic Jim’s Famous Gourmet Pizza, we have set a goal to become the recognized leader in the gourmet pizza delivery category. We desire to establish ourselves as the best pizza you can have delivered to your home or office - bar none. We see a huge market opportunity in the highly competitive 40+ billion dollar pizza industry in two distinct areas: overall pizza quality and customer service. We intend to fully capitalize on these opportunities by consistently delivering the best tasting and most unique pizzas and related products in a timely manner. We have fashioned our recipes and our store operations with this goal in mind. In an effort to make the best pizza money can buy, we started with the best ingredients. The foundation of a Garlic Jim’s Famous Gourmet Pizza is the dough, the sauce and the cheese. Our fresh, never frozen dough is made with such ingredients as buttermilk, parmesan cheese and garlic. These are ingredients not found in the dough recipes of our national competitors. Our fully prepared pizza sauce is fresh packed: never frozen or made from tomato paste. You can see and taste the difference. We use only fresh 100% whole milk mozzarella cheese that has never been frozen. No other national pizza chain can make these claims. In addition to our gourmet foundation, we offer unique toppings such as pesto sauce, marinated artichoke hearts and sun-dried tomatoes. Our menu offering is a distinct point of difference that appeals to a wide variety of consumers not adequately served by our competitors. It is hard to beat a Garlic Jim’s Famous Gourmet Pizza! Making a great pizza is not enough. We must consistently deliver the highest quality customer service in the business. It is our mission to make it a joy for our customers to do business with us. Every interaction we have with our customers is an opportunity to ‘WOW’ them. Every Garlic Jim’s store is constructed with this in mind. We build in plenty of order-taking stations so customers are not on hold for long periods of time. We build beautiful lobbies so our customers feel comfortable and right at home. We arrange the equipment in our kitchens in order to maximize efficiency and minimize make times. From beginning to end, providing an overall customer experience is what we do. Make a great pizza, deliver it on time, ‘wow’ the customer, repeat. These are the primary responsibilities of a Garlic Jim’s Famous Gourmet Pizza franchise store owner. Franchisees must remain focused on the highest priority topics in order maximize the profitability of their stores. With Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 6 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 that said, Garlic Jim’s provides a wealth of services to assist franchise store owners. We believe Franchisees will be most successful if they are focused on marketing their stores, making great pizzas and servicing their customers. Our systems are intended to minimize much of the “back of the house” work so that Franchisees can stay focused on what’s important: making a great pizza, delivering it on time, ‘WOW’ing the customer. Successful Franchisees will let the system work for them so they are focused on driving their business. By design, Garlic Jim’s stores utilize an approved network of food distributors to provide one-stop shopping for each of our stores. “Mom and Pop” pizzeria owners only dream of having everything from food, paper products, equipment, uniforms, cleaning supplies and more delivered to their store every three days. Even more important than convenience, Garlic Jim’s is able to leverage the buying power of the entire system, driving down the costs of food while maintaining product consistency among stores. This is a huge benefit only available to Garlic Jim’s Franchisees. The pizza industry is an advertising driven business. Coupons, direct mail, and grass roots marketing are essential to driving customers to Garlic Jims stores. Garlic Jim’s Multimedia is a web based service offering templates, custom artwork, and design for all print and related material that is required as part of an ongoing advertising campaign. Door hangers, menus, magnets, box toppers, lunch fliers and many other basic marketing tools can be ordered directly from Garlic Jim’s Multimedia. The premise is to get out and do the marketing rather than to precious time learning how to become the designer and printer. Garlic Jim’s has now introduced an entirely new, game-changing concept to the pizza industry: ‘Gourmet Your Way’. We now offer instant Neapolitan pizzas with toppings chosen by the customer from our selection of amazing, fresh ingredients. This concept is the perfect complement to the ‘Gourmet, Right Away’ approach to pizza that’s been a part of Garlic Jim’s since the beginning. Garlic Jim’s now offers outstanding gourmet pizzas, available when the customer wants, with their favorite toppings. This new concept was designed especially for Garlic Jim’s peak busy times (lunch and dinner) but is available in-stores all day. Garlic Jim’s is showing our customers that pizza can be fast and easy – like many other lunch time offerings. Garlic Jim’s wants pizza to be available to people who are in a hurry and our 5 minute Neapolitan pizzas do just that! In summary, Garlic Jim’s will become the next great pizza chain. We will achieve our goal because we will stay focused on what is important to our customers. Great food and great service! Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 7 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Garlic Jim’s Company History The founders of Garlic Jim’s have decades of experience in the pizza and retail industry. Garlic Jim’s was founded because a group of experienced, talented people joined forces and realized that no national chain was delivering quality, gourmet pizza in a timely manner. They quickly realized that if they pooled together their experiences and talents and focused on “gourmet right away” that great things could happen. Experience, proven methods, great talent and a good dose of creativity were the ingredients behind the formation of Garlic Jim’s Famous Gourmet Pizza. Garlic Jim’s Customer Promise At Garlic Jim’s we want to produce loyal, satisfied pizza customers. If any Garlic Jim’s pizza does not live up to the promise of a “happy pizza experience” we will do what is necessary to remedy this. “To treat every single customer as if they are the most important person in the world at the moment.” Our objective is that all of us as a team will live by this goal 100% of the time at Garlic Jim’s. Company Structure GJ Franchise Systems Inc. is the holder of all of Garlic Jim's trademarks, systems, and intellectual property. Garlic Jim's sells franchises and licenses the name to different products and services nationally. Company Goals The ultimate goal of Garlic Jim’s Famous Gourmet pizza is to create the best pizza delivery and carry out experience possible for our customers. This is the most important goal because all of our other goals will only happen if we achieve this goal. These other goals include providing a profitable business venture for our Franchisees, our Sub Franchisees and our stockholders, providing good pay and great working conditions to employees, and providing personal and business opportunities for employees and Franchisees, owners and vendors by continuous and profitable growth. Market Position Garlic Jim’s position or niche is simple, but powerful. We aim to provide high-quality pizza that can also be serviced in the same quick, clean and friendly manner that pizza chains with lower quality pizza are doing. This concept has not been mastered by any large pizza chain as of yet, and Garlic Jim’s intends to do this and do it well. The typical pizza consumer is becoming more and more sophisticated when it comes to the quality of product. We want to find this consumer and offer them a better option than they have ever had! And Garlic Jim’s new ‘Gourmet Your Way’ concept is further enhancing our market position with instant Neapolitan pizzas. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 8 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 The 20 Steps to Opening Day Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 9 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 STEP DESCRIPTION Step1 Date The Owner’s Meeting You can check this off right now as you should have gone to the owner’s meeting if you are reading this manual! Step 2 Real Estate Orientation You will be walked through the upcoming RE process of finding and securing retail space. Please read about this step in Chapter 3. Step 3 Site Selection Working with our agent you will search and find the perfect location for your store. Please read about this step in Chapter 3. Step 4 Letter of Intent (LOI) & Site Approval Garlic Jim’s standard LOI details the general business points for your RE lease. Garlic Jim’s approves any sites before entering the LOI process. Please read about this step in Chapter 3. Step 5 Lease Review Our attorney will review your lease to ensure it meets the LOI terms and Garlic Jim’s standards. Please read about this step in Chapter 3. Step 6 Map Trade Area We will drive your delivery area and map the boundaries. Step 7 Signed Lease Now that you’ve secured real estate it’s time to step it into high gear! Please read about this step in Chapter 3. Step 8 Business Setup Checklist These are the general business tasks that you will need to complete before your opening date. Please read about this step in Chapter 2. Step 9 Architectural Drawings Garlic Jim’s assists your contractor by providing initial drawings to ready for any needed permits. Please read about this step in Chapter 4. Step 10 Order Store Equipment Working with your drawings and Garlic Jim’s, you’ll choose and order your store’s equipment. Please read about this step in Chapter 5. Step 11 Submit For Permit Drawings including equipment cut sheets are hand delivered to secure construction permits. Please read about this step in Chapter 4 Step 12 Select Your Contractor Get bids from multiple contractors on our approved vendor list, make a choice and sign a contract. Please read about this step in Chapter 4. Step 13 Training Scheduled The official training program is 4 weeks long and should be completed by at least Pre-Open week 6. Please read about this step in Chapter 9. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 10 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Step 14 Commence Construction Permits in hand, construction contract signed, Garlic Jim’s approval given, construction begins! Please read about step in Chapter 4. Step 15 Marketing Package Order / Start Nine Weeks To Open Plan After confirming the information for your marketing package, you are on your way to starting your grass roots advertising campaign. This campaign is an integral piece of the Grand Opening plan. Please read about this step in Chapter 9. Step 16 Training Team Approval Once you’ve completed your franchisee training your trainer will approve you to operate a store. Please read about this step in Chapter 9. Step 17 Development Department Construction Sign Off Construction is complete, all equipment is installed, and an occupancy permit has been issued Please read about this step in Section 7. Step 18 Key/Code and First Order You will receive your first food order with everything you need to sample before opening day. Please read about this step in Chapters 5 & 7. Step 19 Operations Department Approval to Open This final sign-off is required before you are approved to open as a Garlic Jim’s franchise. Please read about this step in Chapter 7. Step 20 Grand Opening Day! There has been lots of hard work up to this point - now for the payoff! Please read about this step in Chapter 7. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 11 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Chapter 2: Getting Ready – General Business Tasks Organizing Your Business Incorporating Licenses Banking Accounting Payroll Insurance Business Setup Checklist “Step 7” Financing / Funding Accounts Receivable and ACH Policy Get a Phone Number Vendors Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 12 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Organizing Your Business Incorporating You most likely signed your franchise agreement as an individual, but will want to form some sort of corporation to do business. There are several types of companies and organizational forms, each with different tax and liability implications. Garlic Jim’s does not dispense legal or tax advice on these topics; you will need to do your own due diligence on this issue. The most common forms of incorporations in the Garlic Jim’s system are: □ Limited Liability Company (LLC) □ Sub Chapter S Corporation (S Corp.) □ Limited Partnership (LP) □ Corporation (C Corp.) Please seek advice of an attorney and/or accountant before making a decision. Licenses All business must be registered with the federal government and the state which you plan on incorporating. Additionally local counties or cities may require a business license to operate the store or even operate your office, if your official address is different than the store. If you use an attorney or an agency to handle your incorporation papers they should handle both the state and federal governments’ documents. They may be able to help you research local requirements. Or you can simply go to the county or city government and inform them you wish to open a business in their county/city and they will help you. Garlic Jim’s will need to see your Federal Tax ID number and your state business license before you are approved to open your store. Banking Choosing the right bank – You may have a previous relationship with a particular bank that may offer the convenience or special features you desire. Some things to consider when making the decision are: □ Proximity to your store – safety and security procedures are easier to follow if the bank that you deposit at is very close to your store. Using a larger bank with lots of locations is usually a safe bet. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 13 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 □ Your accounting structure – will you be doing the books yourself? If so, features like “on-line banking” and “electronic statements” or “on-line bill pay” may be very important; once again pointing toward a larger bank brand. Although, if you are using an accounting service that for instance requires dropping off your check register and bank statements at their office once a month then the on-line features may not be as high of a priority; making a smaller local bank or a credit union an option. □ Other business needs such as lines of credit or credit cards in the name of the business. Smaller banks are sometimes more likely to extend credit to a new business, although larger banks sometimes run promotions like; “sign up for a new business checking account and get a $5k business Visa card in your company’s name…”. You will need to have your bank account set up and funded early in the process as checks will need to be written to landlords, architects, attorneys etc. long before your store opens. Accounting One of the most important and overlooked aspects of being a business owner is properly handling the accounting/tax/government reporting part of the business. The tax rules are strict, and the government reporting can be confusing. We strongly recommend that you not only find a good CPA for advice and preparation of end-of-year taxes, but you also use a bookkeeping service for your monthly reconciliations, taxes, and reporting. If you choose to do your books yourself there are several software packages that will make the job much easier. Garlic Jim’s offers no training in programs such as QuickBooks or Peachtree, although we can provide you with a “chart of accounts” that can help you get your company profile set up successfully in your computer. Garlic Jim’s requires reporting of financial statements to our accounting and operations departments. The frequency of the reports and the level of accountant review vary from region to region and from time to time. Please ask your franchise consultant for the most up to date reporting requirements. Your financial statement is an important management tool that our operations team can help you to understand and manage. We review your financials then meet with you to discuss areas of improvement, where more money can be saved or made. The better your accounting, the better job we can do identifying potential profit makers. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 14 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Payroll Again we strongly recommend that you use a service such as ADP to process your payroll and payroll taxes. Although other vendors have the ability to process payroll from your desktop, we’ve found that the difficulties with keeping up on items such as employment tax law, garnishments from employees paychecks, filing of taxes, W-2 production and distribution are complicated and time consuming chores that are best performed by a service. Remember, you purchased a pizza franchise, not an accounting job. Garlic Jim’s works on a weekly schedule for store operations and the processing of royalties and food payments. The week starts on Monday and ends on Sunday. Your POS system has the ability to report your payroll in several formats, but the most common and easiest is to use a bi-weekly payroll that starts on a Monday, ends two Sundays later, and the paychecks are distributed the following Friday. Insurance There are two basic insurance plans you’ll be required to carry. The first is standard business and liability insurance on the building and the equipment inside. You’ll need to bind this policy at the time of signing the real-estate lease. Having shopped and chosen an agent prior to that point will help to ensure there are no delays in the opening process. The second is “non-owned auto” insurance. This is a specialty insurance that protects you from liability if an employee driving their own car gets in an accident. There are only a few companies that bind this insurance, and many insurance agents can’t sell you this type of policy. In the “vendor” section you’ll find the contact for an agent that has helped the vast majority of Garlic Jim’s franchisees. This non-owned auto insurance is essential. Garlic Jim’s will not allow you to open until this policy has been bound. Garlic Jim’s will periodically and randomly require proof that the policy is paid up and in force. Any lapse of this policy will result in immediate default of your franchise agreement. Business Setup Checklist (Step 7) The Garlic Jim’s Business Setup Checklist (pictured below) must be completed and signed off by our finance department prior to signing a real-estate lease. The purpose of this checklist is to ensure you are prepared to proceed with opening a store. The checklist has information on it concerning your incorporation status, bank account information, accounting structure, insurance information, financing / funding status, and store phone number. Additional information that is required at the same time is a completed ACH documentation and the “Store Info Sheet”. (All these forms are available online at the Garlic Jim’s resource page). Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 15 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 New Store Business Set-Up Checklist Company Name: ___________________________ Store Address: ___________________________ ___________________________ ___________________________ ___________________________ Store Phone #: Store Fax #: Federal Tax ID Number: ___________________________ UBI Number: ___________________________ Contact Information: Store Owner: Billing Address: Cell #: Email: A/P Contact: ___________________________ ___________________________ ___________________________ ___________________________ ___________________________ ___________________________ External Store Financing (if applicable): Entity Name (bank, leasing co.) Amount Financed ______________________ ______________________ Additional Entity (bank, leasing co.) ______________________ Amount Financed ______________________ Please email to Accounting at Garlic Jim’s corporate office when completed: [email protected] To be completed by Garlic Jim’s: Store Number Store Name ______________ ______________ Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 16 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Financing / Funding Each franchisee finances their store differently. Some use cash. Others use the SBA or a conventional loan. Others lease equipment and/or tenant improvements. However you choose to finance your project is up to you. Each option will impact your balance sheet and your cash flow differently. For instance, if you build the store using cash you will have a strong balance sheet showing large assets. Your profit and loss statement will not show any payments, potentially showing the greatest profit on paper, and therefore the greatest tax liability. If you borrow the money (SBA or conventional loan) your balance sheet will show a large debt and your profit and loss statement will show a small interest payment (the principle portion will go directly to the balance sheet to reduce debt) reducing your profit on paper some, thereby reducing your tax liability. If you lease some or all of your build out your balance sheet will not show the asset or the liability but your profit and loss statement will show a large lease payment, making it that much harder to show a profit. Interest/lease rates vary wildly and the requirements for each and possible collateralization vary from deal to deal and vendor to vendor. You may use anyone you wish to finance your project. We have listed in the vendor section at the end of this section, several companies who have helped other franchisees get financed. The time to start looking for financing is now. You will need to have a financing plan and a preapproval/source of funding prior to signing your lease (part of Step 7 – Business Setup Checklist). If you are securing business financing, you will need to have a package of information to provide to the lender. Preparing that package now will help save time and will allow you to concentrate on marketing prior to opening. Some of items that should be gathered and created include: □ □ □ □ Personal information / personal financial statement 2 years tax returns Business plan Site information / demographics Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 17 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Accounts Receivable and ACH Policy All payments to Garlic Jim’s for royalties, advertising, uniforms and multi-media products will be automatically deducted using the ACH (automated clearinghouse) service. Franchisees will be required to complete and sign an ACH acceptance form. With the form the Franchisee will be required to provide business checking information and a voided check from their business checking account. All sensitive bank account information is held in a secure environment at Garlic Jim’s corporate office at all times. The Garlic Jim’s corporate office will download on End of Week (EOW) report no later than 5pm each Monday. This report will include itemized totals of royalty, advertising, and equipment amounts owed to Garlic Jim’s. The Garlic Jim’s accounts receivable (A/R) department will email an invoice with the amounts to be deducted via ACH. The amount will be deducted from the Franchisee’s bank account via ACH that Tuesday. In the event that there is a discrepancy between the EOW report and data complied by Garlic Jim’s A/R department, the A/R department will contact the store prior to the ACH withdrawal on Tuesday. If the Franchisee does not or is not able to respond before Tuesday, Garlic Jim’s will ACH the amount it calculated. Any discrepancy resolution will be applied to the ACH transmission the following week in the form of a credit or an additional balance due. Any discrepancy resolution will occur before the ACH transmission the following week. Under no circumstances is the ACH process to be disrupted or is a bank to be contacted in regards to discrepancies in the amount of withdrawals. All correspondence, credits, and dispute resolution will be handled through Garlic Jim’s A/R. Insufficient Funds If any ACH payment is rejected due to insufficient funds, a NSF charge of $50 will be applied to the balance and a second withdrawal attempt will be made. If the second attempt is also denied for any reason Garlic Jim’s will notify the Franchisee in writing that all open balances including royalties, advertising, uniforms and multi-media must be paid-off in the form of a cashier’s check and this check must be received by Garlic Jim’s A/R before that Sunday. Going forward, the Franchisee will be required to pay all open balances including royalties, advertising, uniforms and multi-media with a cashier’s check or credit card on file by each Sunday. When a store has demonstrated 13 consecutive weeks without additional late-payment issues they will be returned to the ACH program. Garlic Jim’s may also request that Franchisees placed on cashier’s check or credit card status provide evidence of payment of taxes and payment of rent to ensure the Franchisee is capable of continuing to operate. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 18 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Direct Debit Authorization Form I/We hereby authorize GJ Franchise Systems, Inc., to initiate debit entries (and to initiate, if necessary, credit entries and adjustments for any debit entry in error) to my/our account indicated below, and authorize Chase Bank (“Bank”), to credit and/or debit the same to such account. This authority is to remain in full force and effect until GJ Franchise Systems, Inc. has received written notification from me (or either of us) of its termination in such time and in such manner as to afford GJ Franchise Systems, Inc. and Chase Bank a reasonable opportunity to act on it. Date: Name (print) Bank Name ___________________________________ Signature CHECK ONE: I am not currently participating in the Direct Deposit Program [ ] ADD – Direct Debit to the account shown.* I am currently participating in the Direct Debit Program [ ] CHANGE – Change Bank and/or account number.* [ ] CANCEL – Stop my participation in the program. *Due to the time required for Company and Bank processing, allow one or two pay periods for processing. TAPE Y0UR VOIDED CHECK BELOW IMPORTANT! CHECK TYPE OF ACCOUNT: [ ] CHECKING, [ ] SAVINGS Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 19 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Get a Phone Number For Garlic Jim’s, one of the most important business set up items will be your store’s phone number. You need to identify the company that will provide you with a phone number and arrange for the number early in the store building process. The recommended time to do this is as soon as you sign a lease for real estate. The preferred phone number will end with the numbers - JIMS (5467). These numbers will help identify and form a great association in the minds of your customers. ‘JIMS’ on each marketing piece that a potential customer sees will reinforce the name and the number and create awareness for Garlic Jim’s Famous Gourmet Pizza. Each phone company will have their own procedure for obtaining the number you desire. Usually, the number must be requested and a search will be done for availability. Depending on the company, a premium may be charged for the reserving of a special order number. The premium is normally within a range that will make payment of it worthwhile. The marketing uniformity outweighs the price. The most important thought is to not delay – request the number as soon as you have signed your lease, to ensure the best chance to obtain your desired number. You will need to setup for the other phone lines the store will need also, a total of five lines ringing into a hunt or rollover (allowing you to publish one phone number and allow multiple lines to ring simultaneously) and a data/fax line with DSL. It is usually wise to order your main line with the ‘Jim’s’ number when you sign the lease and order the rest of the lines later, closer to projected opening date. This can be done by having your mainline ring into a voice mailbox until you order the remaining lines. Approved Vendors Garlic Jim’s has approved vendors for your food and equipment. For example, in the Northwest region Garlic Jim’s uses Cheeseman as our distributor and Jake’s Finer foods in the Southern region. This allows you and your management to focus on raising your sales and managing your controllable costs without wasting time sourcing food and equipment for the best prices and service. For equipment, Garlic Jim’s will provide spec sheets and can recommend vendor sources for new or used equipment. Garlic Jim’s has from time to time assisted with acquiring used equipment from the secondary market to assist franchisees with lower build-out costs. This assistance can be provided for an additional fee. Ask your Franchise Consultant or Area Director for further details. See the Equipment section for further details. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 20 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Chapter 3: Real Estate Process & Forms Garlic Jim’s Real Estate Process “Step 2” Garlic Jim’s Real Estate Manual 2015 Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 21 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Garlic Jim’s Famous Gourmet Pizza Real Estate Process Once you, the Franchisee have selected your trade area, the search for the location in which to place your Garlic Jim’s Famous Gourmet Pizza store begins. The retail commercial real estate business is highly fluid. Many factors determine the availability of commercial real estate within a trade area. The search and negotiation of real estate is often the most testing and time consuming portion of the new store open process for franchisees. Garlic Jim’s Famous Gourmet Pizza does not in any way control the real estate market. We are at the mercy of the free real estate market at this point. Almost every factor of a commercial real estate deal is negotiable. Garlic Jim’s and its approved real estate team will assist and advise franchisees during the quest for a location, but every franchisee should be aware that this search, negotiation, and procurement can take many months or years to achieve. The motives of Garlic Jim’s and its franchisees are dually aligned, in that the company and the franchisee want to secure a location and get stores opened for business. Entrepreneurs, new to the commercial real estate and development process will soon realize that commercial landlords may not share our same resolve to reach an agreement and execute a lease in a timely fashion. Once a franchisee is committed to a location within their trade area, Garlic Jim’s and its real estate partners will work diligently and utilize every available resource to secure the location on behalf of the franchisee. Included in the next several pages of this section of the owner’s manual is a step by step account of the real estate process. Because of the limited inventory of commercial real estate options available to franchisees, we must work quickly and be able to make sound decisions in order to take advantage of opportunities. Evaluate the Trade Area: Although it’s assumed that the franchisee has evaluated their trade area prior to purchasing a franchise agreement and committing to that trade area, a thorough street level evaluation will need to be conducted by both the franchisee and the Garlic Jim’s development team. Franchisees will be educated by Garlic Jim’s as to the site selection analysis that will need to be done by the franchisee in order to make sound and educated decisions. Franchisees will need to have a working knowledge of every strip mall and commercial center within their trade area and be able to speak with intimate knowledge on each. Garlic Jim’s as well as most of our competitors desire exclusivity clauses in commercial real estate leases which prevent similar pizza concepts from gaining a location in which a viable pizza concept is already in business. This allows us to narrow our search, and out-position our competition with regards to our target demographic as neither our customers nor our competitors are moving targets. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 22 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 During the evaluation process franchisees should as part of their due diligence responsibilities do the following: Acquire a map of the area and locate all the commercial centers within the trade area. Identify and locate all pizza competitors within the trade area and identify them on the map. Be aware of the target customers located within their trade area and the commercial centers relative to those customers. Understand traffic patterns at key times and how they relate to potential deliveries. Identify and locate any and all commercial real estate availability within the trade area. Actively communicate all potential site availabilities to the approved real estate agent. General Garlic Jim’s Site Location Considerations: Although we all desire the perfect location to place our stores, this may not always be realistic. Because we are primarily a delivery business the actual store location of our stores becomes secondary to the marketing, in-store operations, customer service and delivery effectiveness of our teams. This gives Garlic Jim’s franchisees a distinct advantage over other concepts which are dependant upon foot and drive-by traffic to generate business. Additionally, the convenience of delivery may afford more store location options to franchisees within their trade area. During the site location and evaluation process some of the factors that should be considered are listed below: Is the potential site located as close to the center of the trade area as possible? Does the location allow for easy ingress and egress (entrance and exit)? Does the site allow for good street visibility? Is the center active with customers and full with quality tenants? Is the center well kept? Is the center located in an area lending itself to maximum delivery potential to the target customer? Will we out-position our competition? That is, will we have a delivery service advantage to any significant number of potential customers over that which our competitors now serve? These are the initial questions that will be asked as we begin the site search. Once all of the available commercial real estate sites have been identified, the Franchisee and Garlic Jim’s development team will begin to prioritize the sites (if more than one desirable site is currently available). Once each site has been prioritized, the Letter of Intent process will begin. Letter of Intent (LOI) Once the trade area has been thoroughly evaluated and the most desirable locations have been identified, the letter of intent process will begin. A letter of intent starts the commercial real estate negotiation between the Garlic Jim’s franchisee and the commercial landlord and broker. The letter of intent is a non-binding letter of interest meant to communicate the specific use and needs of Garlic Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 23 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Jim’s. This opens a dialogue between the Garlic Jim’s approved real estate agent and the landlord’s designated listing broker. The Garlic Jim’s approved real estate agents representing the franchisee will be familiar with the fair market rates as well as the needs and requirements of the Garlic Jim’s use. Garlic Jim’s has invested many hours in educating its approved brokers regarding our needs providing them valuable insight needed for a successful negotiation. With that said, only Garlic Jim’s approved brokers will negotiate real estate transactions on behalf of Garlic Jim’s Franchisees. The letter of intent and subsequent negotiation will clarify the main business points of the transaction prior to the draft of a lease. It is common to negotiate the basic business terms of the deal such as size, use, rate and term prior to a more intensive lease negotiation. If the two parties can agree to do business under the terms agreed upon during the LOI negotiation then it is assumed they will be able to execute a legally binding lease. Garlic Jim’s LOI’s contain, but are not limited to the following information: Use: Will the LL accept our pizza delivery and carryout use, or are they hindered by exclusivity clauses with other tenants prohibiting additional pizza purveyors? Rate: What is the asking rate for the space versus what we are willing to pay? Space: Is the space large enough to accommodate our store design, or conversely too large making the economics of the deal undesirable? For a delivery/carryout model, Garlic Jim’s looks for spaces between 1,100 to 1,500 square feet with a minimum of 18 feet in width. Ideal size is 20 wide x 60 deep for a total of 1,200 square feet. For the instant service model, Garlic Jim’s looks for spaces from 1,600 to 2,500 square feet. Term: Can we possess the space for a minimum of 10 years amortizing our tenant improvement and equipment costs over that time? Tenant Improvement Allowance: Some LL’s will provide strong tenants with financial incentives to keep their rates higher and attract strong concepts to their centers. Shell: In what condition is the space in? Can our electrical, HVAC, and natural gas requirements be met by the utilities provided by the center? Are existing bathrooms in place? Rent Abatement: Garlic Jim’s requests at least 3 months of free rent, so that the franchisee is not paying rent during the construction process while not achieving revenue. Possession Date: When will the franchisee have access to the space? Miscellaneous: Idiosyncrasies of each site such as parking and signage can also be identified and discussed during the LOI process. The burden of financial wherewithal will be placed on the franchisee at this time. The franchisee may be requested to provide a personal or corporate financial statement, a statement of cash on hand and several years tax returns at this time. The franchisee will also be expected to personally guarantee any agreeable lease. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 24 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Lease Review and Signing: Once a mutually acceptable LOI has been agreed upon by the franchisee, Garlic Jim’s, and the LL, then LL will produce a draft lease. A commercial lease is a legally binding contract and will be treated as such. The LL will send the draft lease to the real estate agent representing Garlic Jim’s and its franchisee. The real estate agent will then forward the lease to the chosen approved Commercial Real Estate Attorney. The Franchisee will be expected to pay a lease review fee prior to the legal review of the document. The approved real estate attorney will then review the lease on behalf of Garlic Jim’s and its franchisee and communicate any potential terms for additional discussion and await instruction from Garlic Jim’s. The attorney will at this time attach the Garlic Jim’s lease addendum to the lease for the LL’s review. The LL will often have their attorney review the lease and addendum. Once all the terms of the lease have been deemed agreeable by the LL and Garlic Jim’s, and the Franchisee has reviewed the lease, the lease will be considered approved for signature. As you can see, the site location and real estate procurement portion of the store opening process is highly intricate and involved. Locating, negotiating and securing viable commercial real estate can be laborious and frustrating. Once a mutually acceptable lease has been executed the process really starts to move. At the point of lease execution Garlic Jim’s and its franchisee take control of the process and timeline. We are no longer subject to the time lines of the LL. This begins the construction and grand opening phase of a new store open. Contact Information -Garlic Jim’s Real Estate and Development Team: Kevin Woolley – VP of Development GJ Franchise Systems Inc. 3922 148th St. SE Suite 107 Mill Creek WA 98012 425-948-7603 phone 425-948-7945 fax [email protected] Jonathan Pearlstein – Lease Negotiator RE Consult, Inc. PO Box 448 North Bend, WA 98045 425-444-7899 phone 425-888-6479 fax [email protected] Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 25 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 W ELCOM E! GARLIC JIM ’S FAM OUS GOURM ET PIZZA - REAL ESTATE M ANUAL 2 0 1 5 Congr atulations on pur chasing your Gar lic Jim’s Famous Gour met Pizza fr anchise. You have joined a team of pr ofessionals that str ives to pr ovide advice and r esults that are as outstanding as our pizza. The Real Estate M anual is the fir st step on the jour ney to opening your Gar lic Jim’s Famous Gour met Pizza. This manual is intended as a guide, it has been created to help you under stand all of the steps involved in deciding what r eal estate is r ight for your Gar lic Jim’s Famous Gour met Pizza and how to secur e such a site. W e have pr ovided examples of all of the for ms you should see in finding and securing your site. This manual has been br oken into the following sections for quick r eference: - - - A. Franchise Real Estate Process B. Finding Your Site o Site Requirements C. Negotiating Your Site o Standard Letter of Intent o Standard Garlic Jim’s Construction Shell o Standard Garlic Jim’s Corporate Addendum o Sign Exhibit o M enu Exhibit D. Evaluating Your Site o Site Approval Form o Site Acceptance Form E. Garlic Jim’s Approval of Your Site and Lease Execution A - FRANCHISE REAL ESTATE PROCESS Her e is a br ief outline of the Gar lic Jim’s Famous Gour met Pizza’s Real Estate Pr ocedur es that will need to be followed in or der to find your site, have your site appr oved by Gar lic Jim’s Famous Gour met Pizza and secur e a lease for that site. Please read this thor oughly and make sur e you under stand each aspect of the Real Estate Pr ocess. If you have any questions please contact t he development team at Gar lic Jim’s Famous Gour met Pizza. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 26 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 TW O STEP PROCESS 1 . Site Appr oval Pr ocess 2 . Lease Appr oval Pr ocess 1 . SITE APPROVAL PROCESS A. Site must be submitted to the Gar lic Jim’s Famous Gour met Pizza’s appr oved r eal estate br oker for pr esentation to Gar lic Jim’s Famous Gourmet Pizza for final site appr oval. a. Site must be within your selected tr ade area and r egister ed with Gar lic Jim’s Famous Gour met Pizza. b. A Site Appr oval For m must be completed online by the fr anchisee and submitted to Gar lic Jim’s Famous Gour met Pizza. B. The lease cannot be signed by a fr anchisee as a Gar lic Jim’s Famous Gour met Pizza fr anchisee until a site has r eceived final appr oval by Gar lic Jim’s Famous Gour met Pizza. Final approval will be franchisee’s receipt of a fully executed Site Approval Form. 2 . LEASE APPROVAL PROCESS Pr ior to lease execution, Gar lic Jim’s Famous Gour met Pizza must appr ove the lease. W hen the landlor d completes the final draft lease then it will be sent to the fr anchisee for signatur e. Gar lic Jim’s Famous Gour met Pizza will notify the fr anchisee in wr iting that the final lease has been appr oved for execution. Do not sign the lease prior to final written approval by Garlic Jim’s Famous Gourmet Pizza. Final approval will be the franchisee’s receipt of a fully executed Site Acceptance Form. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 27 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 GARLIC JIM ’S FAM OUS GOURM ET PIZZA’S REAL ESTATE PROCEDURE It is the Fr anchisee’s r esponsibility to accept and author ize all final offer s, analyze and r esear ch all pr oposed locations, complete the r equir ed Site Appr oval For m and Site Acceptance For m, make all independent business analysis of the location and Letter of Intent and Lease terms and r eview and appr ove all aspects of lease negotiation. Real Estate Team o Garlic Jim’s Famous Gourmet Pizza’s Real Estate Department Responsibilities: Fr anchisee placement and site appr oval. o Garlic Jim’s Famous Gourmet Pizza’s approved real estate broker Responsibilities: Exclusive agents to find sites and coor dinate r eal estate pr ocess. Initiate Letter of Intent . Cr eate and maintain online r eal estate database for each tr ansaction. Coor dinate negotiation of business ter ms in Letter of Intent with fr anchisee, the landlor d and Gar lic Jim’s Famous Gour met Pizza. Assist Fr anchisee in completing online real estate Sit e Appr oval For m. o You, the Franchisee Finding your location with the suppor t of the r eal estate team. Appr ove Letter of Intent . Complete Online Final Site Appr oval. Appr ove the lease. * * * PLEASE DO NOT CONTACT THE BROKER, DEVELOPER OR LANDLORD DIRECTLY. ALL CALLS SHOULD BE DIRECTED TO THE GARLIC JIM ’S FAM OUS GOURM ET PIZZA APPROVED REAL ESTATE BROKER W HO W ILL THEN INTERACT W ITH THE LANDLORD’S REPRESENTATIVE * * * Site Selection o Designate Trade Area Designate a tr ade area to concentr ate site sear ch. o Identify Location Check with Gar lic Jim’s Famous Gour met Pizza’s appr oved r eal estate br oker for available qualified inventor y in your tr ade ar ea. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 28 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Gar lic Jim’s Famous Gour met Pizza’s appr oved r eal estate br oker will contact ar ea br oker s and let them know Gar lic Jim’s Famous Gour met Pizza needs qualified sites in the ar ea. Dr ive ar ea and call Gar lic Jim’s Famous Gour met Pizza’s appr oved r eal estate br oker with any potential sites that meet Gar lic Jim’s Famous Gour met Pizza’s site cr iter ia. Evaluate site and compar e to site cr iteria. Letter of Intent - A Letter of Intent is an offer by the tenant to lease space based upon the business elements contained within the Letter of Intent. The letter of intent is intended solely as a pr eliminar y expr ession of gener al intentions and is to be used for discussion pur poses only. The par ties intend that neither shall have any contr actual obligations to the other with respect to the matters r efer r ed to unless and until a definitive agr eement has been fully executed and deliver ed by the par ties. The par ties agr ee that a letter of intent is not intended to create any agr eement or obligation by either par ty to negotiate a definitive lease agr eement and imposes no duty whatsoever on either par ty to continue negotiations, including without limitation any obligation to negotiate in good faith or in any way other than at ar m's length. Pr ior to deliver y of a definitive executed agr eement, and without any liability to the other par ty, either par ty may (1 ) pr opose differ ent ter ms fr om those summar ized, (2 ) enter into negotiations with other par ties, and/ or (3 ) unilater ally ter minate all negotiations with the other par ty her eto. o The Letter of Intent will be submitted by Gar lic Jim’s Famous Gour met Pizza’s appr oved r eal estate br oker to the Landlor d on behalf of Gar lic Jim’s Famous Gour met Pizza, to be assigned to a Fr anchisee. o Gar lic Jim’s Famous Gour met Pizza’s appr oved r eal estate br oker will coor dinate the negotiation of business ter ms under the dir ection of Gar lic Jim’s Famous Gour met Pizza’s Real Estate Depar tment and the fr anchisee, then pr esent to the Fr anchisee for acceptance. o The Fr anchisee will sign and r etur n Letter of Intent for pr esentation to Landlor d. Applying for Financing o Contact Gar lic Jim’s Famous Gour met Pizza - Development Depar tment for suppor t. Site Approval Form (completed online) and Site Acceptance Form o Complete online Site Approval Form for final site appr oval. In the event you do not have access to the Inter net then a har d copy will be pr ovided for you to complete. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 29 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 o In the states of W ashington and Or egon the Site Approval Form does not need to be submitted but should be used by the fr anchisee to evaluate his or her location pr ior to completing and submitting the Site Acceptance Form. Leasing Process o Lease Negotiations You will r eceive a Lease Review Letter outlining the next steps in the r eal estate pr ocess. Fr anchisee will be r equir ed to send $ 2 ,0 0 0 to the appr oved lease negotiator for lease review. W hile the lease negotiator will make extensive comments to assure that the lease meets Gar lic Jim’s Famous Gour met Pizza’s cor por ate standar ds for appr oval, the final lease often will not contain many of the ver y tenant -or iented points. The goal is to confirm that the lease cor responds to the business points in your signed Letter of Intent, and to make the lease acceptable to Gar lic Jim’s Famous Gour met Pizza. IT IS IM PORTANT THAT YOU CAREFULLY REVIEW THE LEASE. Also, while the lease negotiator strives to achieve r evisions that will make the lease meet Gar lic Jim’s Famous Gour met Pizza’s standar ds for appr oval, they str ongly encour age you to take any fur ther steps you feel necessar y to assur e that the lease is satisfactor y to you. Fr anchisee will r eceive lease with comments fr om lease negotiator s at the same time it is sent to the landlor d. Car efully r eview the entir e lease and make sur e business ter ms cor r espond to Letter of Intent you signed. This is ultimately your r esponsibility to make sur e the ter ms match. Lease negotiator will r espond to Landlor d incor por ating all comments Lease negotiator will continue negotiation between fr anchisee and Landlor d until lease meets Gar lic Jim’s Famous Gour met Pizza’s standar ds and the business ter ms specified in the letter of intent. Lease Execution o Fr anchisee will r eceive three or four “execution copies” of lease. o Sign and notarize wher e indicated. o Send all copies signed, notar ized and with any security deposits and r ent deposits due per the ter ms of the lease to the addr ess indicated on the lease; please send via tr aceable cour ier . Please remember, you must be in receipt of a Site Acceptance Form signed by Garlic Jim’s Famous Gourmet Pizza before you are authorized to sign the lease as a Garlic Jim’s Famous Gourmet Pizza franchisee. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 30 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 B – FINDING YOUR SITE Finding your sit e is one of the most impor tant steps you will take in becoming a successful fr anchisee. You have pr obably hear d the old adage, “location, location, location” and it is even tr uer with commer cial r eal estate. This decision will have the most impact on how your store could potentially per for m; mar keting and r unning an efficient oper ation are also integr al aspects of being successful. Ultimately you ar e the one r esponsible for finding and submitting your site. Gar lic Jim’s Famous Gour met Pizza will assist you in making this ver y impor tant decision. Gar lic Jim’s Famous Gour met Pizza has evaluated r eal estate br oker s in your mar ket and has appr oved a r eal estate br oker who has the knowledge and exper tise in your mar ket. The Real Estate Team will consist of you, the appr oved Gar lic Jim’s Famous Gour met Pizza’s r eal estate broker and Gar lic Jim’s cor por ate development team. After your fr anchise agr eement has been executed, you will be contacted by the Gar lic Jim’s development team or appr oved br oker to set up an appointment for your Real Estate Or ientation. The Real Estate Or ientation will intr oduce you to the Gar lic Jim’s Famous Gour met Pizza’s r eal estate broker who will explain how the real estate pr ocess wor ks, discuss r eal estate availability in your tr ade ar ea, and answer any questions you might have concer ning r eal estate, leasing or the real estate pr ocess. To help in finding and evaluating your site, we have pr ovided a list of what we feel are the most impor tant Site Criter ia. M ost successful sites will meet a major ity of these cr iter ia. Site Requirements Her e is a list of impor tant criter ia to look for and evaluate when choosing your location. Having all or many of these site char acteristics does not guar antee a successful stor e but finding a location that meets as many of these char acteristics should gr eatly impr ove your oppor tunity for success. DEM OGRAPHICS (these could vary according to geographic region) Households – 1 5 ,0 0 0 within 2 ½ miles of your location Income - $ 6 0 ,0 0 0 aver age household income within 2 ½ miles of your location Age – 3 7 year s old or less as an aver age age within 2 ½ miles of your location Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 31 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 VISIBILITY Although Gar lic Jim’s Famous Gour met Pizza is pr imarily a deliver y business it is still impor tant that the consumer is exposed to your sign, your stor efr ont and the br and as often as possible. ACCESS Gar lic Jim’s Famous Gour met Pizza is pr imar ily a deliver y business so it is ver y impor tant that your deliver y vehicles can get in and out of your par king ar ea in a timely manner. PARKING Gar lic Jim’s Famous Gour met Pizza is pr imar ily a deliver y business so it is ver y impor tant that your deliver y vehicles can par k close to your storefr ont. It is also impor tant that ther e ar e enough par king spaces to accommodate par king for peak deliver y hour s. M ARKET Gar lic Jim’s Famous Gour met Pizza is looking for neighbor hood center s, as close to the “r oof tops” as possible. Gr ocer y anchor ed neighbor hood center s ar e ver y attr active locations due to their pr oximity to the “r oof tops.” C - NEGOTIATING YOUR SITE The Gar lic Jim’s Famous Gour met Pizza’s appr oved r eal estate br oker has been pr ovided with the following appr oved templates: Garlic Jim’s Famous Gourmet Pizza’s Standard Letter of Intent (U.S. M arket) A Letter of Intent is an offer by the tenant to lease space based upon the business elements contained within the Letter of Intent. The Letter of Intent is intended solely as a pr eliminary expr ession of general intentions and is to be used for discussion pur poses only. The par ties intend that neither shall have any contr actual obligations to the other with r espect to the matter s r efer r ed to unless and until a definitive agr eement has been fully executed and deliver ed by the par ties. The par ties agr ee that a letter of intent is not intended to create any agr eement or obligation by either par ty to negotiate a definitive lease agr eement and imposes no duty whatsoever on either par ty to continue negotiations, including without limitation any obligation to negotiate in good faith or in any way other than at ar m's Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 32 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 length. Pr ior to deliver y of a definitive executed agr eement, and without any liability to the other par ty, either par ty may (1 ) pr opose differ ent ter ms fr om those summar ized, (2 ) enter into negotiations with other par ties, and/ or (3 ) unilater ally ter minate all negotiations with the other par ty hereto. Garlic Jim’s Famous Gourmet Pizza’s Standard Construction Shell This Exhibit contains a “wish list” of all the impr ovements desir able to constr uct a Gar lic Jim’s Famous Gour met Pizza store at the lowest possible cost. It is not typical to have the landlor d agr ee to constr uct the space to all of these r equirements. This would be a “best case scenar io.” Garlic Jim’s Famous Gourmet Pizza’s Standard Corporate Addendum Gar lic Jim’s Famous Gour met Pizza will not appr ove any lease without this Addendum being attached to or incor por ated into a lease. Gar lic Jim’s Famous Gour met Pizza M AY appr ove a lease with minor modifications to this Addendum however it will be at the discr etion of Gar lic Jim’s Famous Gourmet Pizza. Garlic Jim’s Famous Gourmet Pizza’s Standard Sign Exhibit This is the design for a standar d sign that would be attached over the stor efr ont. Please note, size and dimensions will var y accor ding to many var iables, e.g. local building codes, size of the space, etc. Garlic Jim’s Famous Gourmet Pizza’s Standard M enu This is a typical menu fr om the state of W ashington. M enu items and pr ices may var y fr om stor e to stor e so please use this as a r efer ence only. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 33 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 SAM PLE LETTER OF INTENT Date Via Email XXXXXXXXXXXXX Re: Garlic Jim’s Famous Gourmet Pizza at XXXXXXXXXXXXXX Dear XXXX: Thank you for providing information on the above referenced property. We are pleased to present on behalf of GJ Franchise Systems, Inc. the following terms and conditions for the lease of the above referenced premises. 1. LESSEE: A duly authorized franchisee of GJ Franchise Systems Inc. to be named. The trade name shall be Garlic Jim’s Famous Gourmet Pizza. 2. PREMISES: xxxx square feet of space xxxxxxxxxx in the above referenced location, minimum 20’ width. Landlord to provide all available “as built” drawings and/or building plans as soon as possible after mutual execution of this letter. 3. POSSESSION DATE: Possession shall take place upon the later of (1) Landlord’s delivery of the Premises with all Landlords’ Work completed or (2) upon Lessee receipt of necessary permits. (SEE PERMIT CONTINGENCY BELOW) Landlord’s Work shall be deemed complete upon Landlord delivering written notification to Lessee. The parties shall coordinate an on-site visit with Lessee’s and Landlord’s representatives, at which time if all work has been completed Lessee will give written acceptance of the Premises to the Landlord. 4. LEASE TERM: Ten (10) years. The Lease Term Commencement Date shall be ninety (90) days following the Possession Date, as defined above. 5. RENT COMMENCEMENT: Upon the Lease Term Commencement Date as defined above. 6. RENT: $xx.xx per square foot of interior Premises with annual CPI increases, not to exceed three percent (3%) per year. Lessee agrees to pay its proportional share of NNN’s for the leased premises, Landlord to provide written verification of current or projected NNNs prior to Lease negotiations. Lessee agrees Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 34 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 to carry liability insurance in the amount of One Million and No Dollars ($1,000,000.00) and will insure the leasehold improvements and trade fixtures at their full replacement cost(s). Furthermore, with the exception of taxes, NNN’s shall not increase more than five percent (5%) in any one year period. Lessor agrees that Lessee shall not be responsible for any costs in correcting defects in design or construction of the leased premises. 7. RENT ABATEMENT Landlord shall grant Tenant rent abatement of three (3) months rent to be credited to the first, second and twelfth months rent due. 8. PERMITTED USES: Lessee shall have the right to sell certain food items and beverage products sold by Garlic Jim’s Franchising Corporation restaurants. SEE ATTACHED MENU EXHIBIT 9. SIGNAGE: Lessee shall be allowed to place on the façade and window areas its standard signage and logo per Franchisor’s standard signage criteria. Lessee shall have the right, from time to time, to place professionally made banners in the windows advertising certain “specials” throughout the year. A mutually executed lease shall be contingent until final approval of all signage allowed by the appropriate governmental permitting agencies. SEE ATTACHED SIGN EXHIBIT 10. HOURS OF OPERATION: Store hours will be in compliance with Garlic Jim’s Franchise Company national and regional requirements, which reflect consideration of the local market, industry standard, and operating hours of other Garlic Jim’s and competitor’s stores in the market. Typically these hours will be 11 a.m. to 11 p.m. 11. EXCLUSIVITY: Lessee shall have the exclusive right to engage in the sale of pizza as more specifically defined in the attached Garlic Jim’s Franchising Corporation Franchisor Addendum. 12. LANDLORD'S WORK & TENANT IMPROVEMENT ALLOWANCE: Landlord shall provide work as outline in attached “Schedule A.” Lessor agrees to build a second ADA restroom in the leased premises at the sole expense of Lessor, if needed per code. In addition, Landlord shall provide Lessee with an allowance of $xx.xx psf to be used by Lessee for interior improvements, payable one half upon issuance of tenant improvement permits, 1/2 upon Lessee’s opening for business, Certificate of Occupancy and proof of lien releases. Lessor warrants that the leased space is correctly zoned for Lessee’s proposed use and the building is in compliance with all applicable laws and regulations. Lessee shall at its’ sole Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 35 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 expense obtain all necessary governmental permits, with the exception of any special use permits which shall be the responsibility of Lessor. Lessor shall hold Lessee harmless from all costs involving hazardous materials, unless Lessee induced. Lessor shall provide to Lessee with mutual execution of this lease and made a part of the lease a copy of all Landlord improvements. Lessee has enclosed along with this offer to lease their standard list of Lessor and Lessee responsibilities. (SEE ATTACHMENT) 13. TENANT'S WORK: Tenant shall complete the interior to accommodate Tenant's fixture period and other work necessary for Tenant's use, conforming to Garlic Jim’s Franchising Corporation requirements. Tenant shall provide a space plan and finish plan/schedule for Landlord's review and approval which approval shall not be unreasonably withheld, delayed or conditioned, within twenty-one (21) days following Landlord's delivery of “as-built” drawings for the Premises. 14. PERMIT CONTINGENCY: The Lease shall be subject to the Lessee’s ability to obtain all necessary permits and approvals for its use of the Premises. Lessee shall submit for permits within twenty-one (21) days after the later of (1) mutual execution of the Lease, and (2) Landlord’s delivery to Lessee of “as-built” drawings for the Premises. Following submission of permits, Lessee shall diligently pursue the receipt of such permits. 15. OTHER CONTINGENCIES: Prior to Lease execution Landlord shall confirm that (a) the space is properly zoned for Lessee’s use, (b) any traffic, water, sewer or use mitigation fees have been paid by Landlord, and (c) that Lessee’s use will not require the installation of a sprinkler or fire suppression system. Lessee shall have the right to conduct a site survey of the property prior to lease execution to verify dimensions, capacity of utilities, and review existing conditions of the Premises. If Landlord does not deliver space within 180 days of lease execution then Lessee shall have the option to terminate the Lease. 16. BROKER COMMISSION: 17. NO RADIUS/RELOCATION CLAUSES: Any radius restrictions or relocation provisions found in the Lease will be deleted. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 36 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 18. FRANCHISOR ADDENDUM TO LEASE: Attached to this offer is the standard Franchisor Lease Addendum. This document is not to be edited without the consent and approval of Garlic Jim’s Franchising Corporation. Any proposed changes shall be clearly denoted and reflected in colored or highlighted text and forwarded to Garlic Jim’s Franchising Corporation for review. This Addendum is only negotiable by Garlic Jim’s Franchising Corporation during Lease negotiations. They have further requested that it be attached as an Addendum rather than being incorporated into a Lease. The foregoing expresses the terms and conditions under which Lessee would agree to lease the Premises from Landlord, and this letter shall not be binding upon Landlord and Lessee until a lease has been mutually executed between the parties. In the event this is acceptable, please have Landlord acknowledge acceptance by signing where indicated below, returning a copy to the undersigned, and preparing your standard lease contract for submission to Lessee for review. We would appreciate a written response or letter of acceptance on or before close of business xxxxx xx, 20xx. Very truly yours, Lessee: Lessor: By: By: ___________________ __________________ Title: __________________ Title: __________________ Date: _____________ Date: _____________ Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 37 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 SAM PLE CONSTRUCTION SHELL EXHIBIT SCHEDULE A 1. A complete building shell including structural perimeter walls, roof, insulation and storefront. Walls will be sheet rocked, taped and sanded. 2. Demising walls: Floor to roof. Drywall taped, sanded and ready for paint. 3. Concrete floor: Troweled finish suitable for tile. 4. If sprinkler system is required by code and does not exist, Landlord shall supply adequate sprinkler coverage including mains, branch lines and heads. Sprinkler head layout and height per Tenant’s space plan. Existing sprinkler systems to be altered per Tenant’s layout and by code for Tenant’s use. 5. Minimum 1’’ incoming water service with at least 55 psi with a 4’’ sanitary drain; otherwise 1 ½” incoming water service with a 4’’ sanitary drain line. 6. Electrical Optimal New: If no gas service exists then 400 Amps, 120/208 volt, 3-phase, 4 wire service with 42 space circuit distribution panel located within Tenant’s space in accordance with Tenant’s plans. 200 Amp service will usually be adequate for a standard size store if gas service exists. 7. Gas: Minimum incoming gas line shall be 2”. The supply meter shall be rated for 500,000 BTU duty. 8. Restrooms: Minimum restrooms and fixture amounts as set forth by ADA and local code requirements per Tenant's occupant load and per Tenant’s plans. 9. HVAC: 5 tons distributed through space. 10. Ceiling: Landlord to provide as an additional TI credit. 11. Lighting: Landlord to provide as an additional TI credit. 12. Property to confirm with the Americans with Disabilities Act requirements. 13. Tap Fees: All tap or connection fees for utilities to be paid by Landlord. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 38 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 GJ FRANCHISE SYSTEMS, INC. REQUIRED ADDENDUM This Addendum is attached to and made a part of that certain Lease (the "Lease") by and between ____________ ("Landlord") and _________("Tenant"), for certain premises located at the ___________ Shopping Center in __________. In the event of any contradiction or inconsistency between the terms and provisions of this Addendum and the terms and provisions of the Lease to which it is attached, the terms and provisions of this Addendum shall control and be interpreted in such a manner as to override any provision of the Lease which would prevent the spirit and letter of the terms and provisions of this Addendum from being given full force and effect. All defined terms not specifically defined in this Addendum shall be given the same meaning as the defined terms in the Lease. WHEREAS, Landlord acknowledges that Tenant intends to operate a Garlic Jim’s Famous Gourmet Pizza (“Garlic Jim’s”) restaurant business from the Premises pursuant to a Franchise Agreement (the “Franchise Agreement”) with Garlic Jim’s Franchise Systems, Inc. (“GJFS”) under the trade name “GARLIC JIM’S” or such other system-wide name designated by Franchisor (“Franchised Business”). WHEREAS, Tenant has certain obligations to GJFS relating to the Lease and the Premises arising from and related to the Franchise Agreement, and the provisions of this Addendum are required pursuant to the Franchise Agreement; and WHEREAS, in order to protect GJFS’s interests as set forth in the Franchise Agreement, Landlord and Tenant expressly agree that Franchisor is a third party beneficiary with respect to the provisions set forth in this Addendum. NOW, THEREFORE, the parties agree as follows: 1. ASSIGNMENT PROVISIONS. Tenant shall agree to attorn to any assignee of Landlord provided such assignee will agree not to disturb Tenant’s possession of the Premises. Tenant shall have the right to assign this Lease or sublet the Premises, without charge and without Landlord’s consent being required to GJFS or its parent, subsidiaries or affiliates (GJFS, its parent, subsidiaries and affiliates are each referred to herein as a “GJFS Entity” or “Franchisor”) or to a duly authorized franchisee of Franchisor. In the event of an assignment to a GJFS Entity, the GJFS Entity shall have the right to reassign the Lease, without charge and without Landlord’s consent being required to a duly authorized franchisee of Franchisor and to thereupon be released from any further liability under the Lease. Any options to extend the term of the Lease shall automatically transfer to an assignee in connection with a transfer made pursuant to the foregoing paragraph. 2. GARLIC JIM’S NOTICE AND CURE RIGHTS. Landlord agrees to give Franchisor written notice of any Tenant defaults as a prerequisite to exercising any remedies against Tenant under the Lease. Franchisor shall have Tenant's cure period plus an additional 10 days (but in no event less than thirty (30) days total) to cure (at the Franchisor’s sole option) any such defaults on Tenant's behalf, and to perform (at the Franchisor’s sole option) any other acts on Tenant's behalf as may be necessary to keep the Lease in full force and effect. In the event Franchisor thereafter executes on its security interest in the Lease and Tenant's fixtures and equipment (pursuant to the terms of its Franchise Agreement with Tenant), such action shall not be deemed a default or assignment under the Lease; provided, however, the Franchisor shall thereafter have the right to assign the Lease on Tenant's behalf, without charge and without Landlord's consent being required, to an authorized franchisee. Notice to Franchisor shall be addressed as follows: GJ Franchise Systems, Inc. Garlic Jim's Famous Gourmet Pizza 3922 148th St SE, Suite 107 Mill Creek, WA 98012 Attn: Lease Administrator Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 39 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 3. NO RADIUS/RELOCATION CLAUSES. Any radius restrictions or relocation provisions found in the Lease are hereby deleted. 4. USE CLAUSE. Tenant shall have the right to use the Premises for purposes of a take-out/delivery restaurant selling pizza and beverage products sold by Garlic Jim’s Franchise Systems, Inc. restaurants and any other food products designated by the Franchisor, and retail sales and other ancillary purposes associated therewith. Tenant shall also be allowed to serve samples in the common areas adjacent to the Premises. Landlord acknowledges that Tenant is obligated to comply with Franchisor’s requirements with respect to the equipping, painting, decorating, improvement and maintenance of the Premises, including exterior signage. Initial design of Tenant’s improvements to the Premises shall be subject to Landlord’s review and approval, which approval shall not be unreasonably withheld, delayed, or conditioned. After completion of the initial approved improvements, Tenant may make nonstructural alterations and improvements to the interior of the Premises of $10,000 or less per alteration without Landlord's prior consent, provided the work is performed in a good and workmanlike manner. Tenant may close its business on major, national holidays. 5. EXCLUSIVE. Throughout the Term, as it may be extended under the terms of this Lease, Tenant shall have the exclusive right in the Shopping Center to engage in the sale of pizza; provided, however, that such exclusive shall not apply to any grocery store, or to any restaurant that sells pizza as part of a diverse menu so long as pizza sales do not exceed 10% of the gross sales of such restaurant (excluding alcohol sales). Landlord shall not allow any other party in the Shopping Center to violate the terms or spirit of this exclusivity agreement, and, if a violation occurs, in addition to any other remedies Tenant may have at law or in equity, Tenant shall have the right to terminate this Lease upon thirty (30) days written notice. This restriction applies only during the term of the Lease and any renewals and only within the Shopping Center, and any contiguous space owned, leased or subleased by Landlord or its affiliates within a radius of one (1) mile from the Premises. 6. GARLIC JIM’S SIGNAGE. Landlord hereby grants and approves the following signage: a. Opening Signage. Tenant shall have a license to: (a) erect at least one single or double sided wooden sign in the landscaped Common Area adjoining the most heavily traveled right of way adjacent to the Shopping Center which sign shall say “Coming Soon – Garlic Jim’s” or words similar thereto during the period between the lease execution date and sixty (60) days after the date Tenant opens for business and (b) display “Coming Soon” or “Grand Opening” banners on or near Premises during such period and eight (8) weeks following the opening; and b. Permanent Signage. Landlord agrees to allow Tenant to use the standard GJFS sign package to the maximum size permitted by local governmental authorities. c. Window Signs. Tenant shall be permitted to display signs and promotional items in the windows of the Premises, including permanent neon signs, provided the same are consistent with Garlic Jim’s national standards. d. Pylon/Monument/Directory Sign. Tenant shall be provided with a panel on the Shopping Center pylon/monument/directory sign, and shall be permitted to install a Garlic Jim’s standard sign, including logo, on such panel. 7. TENANT FINANCING. Tenant shall have the right from time to time to grant and assign a mortgage or other security interest in all of Tenant's personal property located within the Premises to its lenders in connection with Tenant's financing arrangements, and any lien of Landlord against Tenant's personal property (whether by statute or under the terms of this Lease) shall be subject and subordinate to such security interest. Landlord shall execute such documents as Tenant's lenders may reasonably request in connection with any such financing. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 40 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 8. LANDLORD WARRANTIES. Landlord represents, covenants and warrants (i) that it has lawful title to the Shopping Center and has full right, power and authority to enter into this Lease; (ii) that the Shopping Center is in compliance with the Americans with Disabilities Act ("ADA"); (iii) that the permitted "use" of the Premises does not currently violate the terms of any of Landlord's insurance policies; (iv) that it currently maintains all risk of physical loss coverage for the full replacement cost of the Shopping Center and shall maintain throughout the term of this Lease general liability insurance coverage for the Shopping Center consistent with that being maintained from time to time by reasonably prudent owners of properties similar to the Shopping Center in the same area; (v) that so long as Tenant pays all monetary obligations due under this Lease and performs all other covenants contained herein, Tenant shall peacefully and quietly have, hold, occupy and enjoy the Premises during the term of this Lease and its use and occupancy thereof shall not be disturbed; and (vi) that the Shopping Center has the proper zoning and a legally adequate number of parking spaces for Tenant’s permitted use. Landlord covenants and agrees that it shall take no action that will interfere with Tenant's intended usage of the Premises. Landlord shall indemnify and hold harmless Tenant and its officers, partners, agents and employees from and against any loss, cost, liability, damage or expense arising out of (x) Landlord's operation of the Shopping Center, (y) Landlord's breach in the performance of any of its obligations under this lease or (z) any violation of law by Landlord or any other act or omission of Landlord or its contractors, agents or employees. The foregoing indemnification shall survive expiration or termination of this Lease. 9. HAZARDOUS MATERIALS. Landlord represents and warrants that the Premises are free of all asbestos, asbestos containing materials and other hazardous or toxic materials (collectively, "Hazardous Materials"). Tenant shall have no obligation to make any repairs, alterations or improvements to the Premises or incur any costs or expenses whatsoever as a result of Hazardous Materials in or about the Shopping Center, Building or the Premises, other than those Hazardous Materials brought onto such areas by Tenant. Landlord shall be solely responsible for any changes to the Premises relating to Hazardous Materials (at Landlord's expense and not as a charge to Tenant's build out allowance), unless those Hazardous Materials were brought onto the Premises by Tenant. Landlord shall indemnify and hold Tenant harmless from and against all liabilities, costs, damages and expenses which Tenant may incur (including reasonable attorneys' fees) as the result of a breach of Landlord's representation and warranty set forth in this paragraph or the presence of Hazardous Materials in or about the Shopping Center, Building or the Premises, unless those Hazardous Materials were brought onto such areas by Tenant. 10. RETURN OF EXECUTED LEASE. Landlord agrees to return a fully executed original lease within 10 days of execution to Tenant, with a copy to: GJ Franchise Systems, Inc. Garlic Jim's Famous Gourmet Pizza 3922 148th St SE, Suite 107 Mill Creek, WA 98012 Attn: Lease Administrator TENANT: ____________________________________, LANDLORD: ____________________________________, By:_________________________________ By:________________________________ Name: Its: Date: ___________________ Name: Its: Date: ___________________ Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 41 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 42 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 43 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 D - Evaluating Your Site How do I evaluate my site? Hopefully, you have found the advice that the Gar lic Jim’s r eal estate team has given to be valuable in helping you find and evaluate your site. In order to make you feel more confident about your site Gar lic Jim’s has pr ovided a Site Appr oval For m that addr esses many of the char acter istics we feel to be impor tant in evaluating your business. W hen evaluating your location you should be awar e of the cr iter ia r eflected in Gar lic Jim’s r eal estate Site Requirements. These ar e the most cr ucial elements when evaluating one site versus another . You do need to be awar e that ther e are many elements that go into a good and sound r eal estate location decision. You must weigh all of the Site Requir ements against other factor s that will go into your secur ing a lease for a site: 1 . The M arket: Real Estate wor ks on the gener al pr incipals of fr ee mar ket economics – supply vs. demand. You should educate your self in the “r ealities” of your tr ade area so that you can better under stand the leasing r ates in your par ticular tr ade area. 2 . The Business Points: These will also typically r eflect the cur r ent status of mar ket economics at wor k in your tr ade ar ea. The har der it is for a landlor d to attr act a tenant the mor e he is typically willing to offer in the way of concessions; whether it is in the for m of lower r ent, rent abatement, more tenant impr ovement dollar s or other for ms of incentives. 3 . Strength of The Signature: Landlor d’s will typically offer better ter ms to a tenant who has a stronger signatur e. To qualify this it simply means the landlor d is typically willing to offer better ter ms for a cor por ate guar anty on a lease or to a tenant who has significant financial net wor th and gr eat cr edit : the less r isk for the landlor d the mor e he is typically willing to do for the tenant. All of these factor s should be consider ed when deciding if you have a good site. It should also be stated that for some landlor ds the law of supply vs. demand is a non-motivator . It is because of the complexity of the r eal estate pr ocess that Gar lic Jim’s Famous Gour met Pizza has an appr oved br oker in your market. This br oker has r eceived tr aining fr om Gar lic Jim’s so that they can best repr esent you in locating a site and helping you to develop a successful negotiating st r ategy in or der to secur e your location. The Site Appr oval For m, along with the Site Acceptance For m, must be fully completed and submitted to Garlic Jim’s Famous Gour met Pizza befor e you can be authorized to sign a lease as a Gar lic Jim’s fr anchisee. The Site Appr oval For m is to be completed online as indicated on the actual Site Appr oval For m. Please make sur e it is complete befor e submitting it to Gar lic Jim’s. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 44 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Site Approval Form Please complete this for m and then enter the data online, keep this har d copy for your files. You may enter this infor mation by going to www.gar licjims.com, click on Gar lic Jim’s Fr anchises M anuals and enter your user name and passwor d which was given to you befor e the owner’s m eeting. Then choose M anuals & For ms. You will be r esponsible for completing this for m, although much of the infor mation will alr eady be input by the br oker . Her e is a descr iption of each section of the Online Database: M ILESTONES: This section will tr ack wher e each r eal estate tr ansaction is dur ing the entire Real Estate Pr ocess. You do not need to complete anything in this section. SITE INFORM ATION: This section will include the r eal time Site Infor mation and Business Points for your site. You do not need to complete anything in this section. CONTACTS: This section will have the contact infor mation for all of those per sons involved in finding, negotiating and developing your site. The only infor mation you can modify is the FRANCHISEE infor mation. The initial infor mation r eflected her e is fr om your or iginal Fr anchise Agr eement. Should any of your contact infor mation change then it is your r esponsibility to update this infor mation by clicking on the notepad and pencil. SITE APPROVAL: This is wher e you get to show us what you’ve found. Please make sur e each question in each section is completed other wise Gar lic Jim’s will not be able to appr ove your site. Your br oker has input much of the infor mation that you will need to complete this for m however it is still your r esponsibility to check it for accur acy and completeness. The br oker will also have many of the attachments you will need to send in to Gar lic Jim’s, e.g. aer ial photo, site plan, etc. If you need another copy of the Site Appr oval For m then you can download it at the bottom of the page. NOTES: This is the section where you can enter notes that you wish to be associated with your site - these notes can be used by the r eal estate team to help dur ing the r eal estate pr ocess. FILES: You may download and view those files associated with your site that you do not alr eady have. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 45 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 The following is the Site Appr oval For m for the Gar lic Jim’s Famous Gour met Pizza site r efer enced below. W e would like appr oval to pr oceed with the development of this location based on the infor mation pr ovided, inspection of the mar ket, tr ade ar ea, and site char acteristics. Fr anchise Number : _______________ Fr anchisee Name:________________________________________________ Addr ess:_______________________________________________________________ City: _________________ State: ___________Zip: _____________ Email: __________________ Home Phone: ______________ Cell Phone: _____________________ Alter nate Phone: ______________________ 1 . Location: Addr ess: _____________ City: County: State: Zip: ______ Cr oss Str eet: Type of Real Estate: FS (Fr ee Standing) EC (End-Cap) (See Below) IL (In-Line) FC (Food Cour t) DISTANCE FROM TW O CLOSEST GARLIC JIM ’S LOCATIONS: Location ____________ distance ____ miles Location ____________ distance ____ miles 2 . Demogr aphic Data: A. Age Data: (aver age age) 1 . 1 mile ______________________ 2 . 2 mile ______________________ 3 . 2 .5 mile ______________________ Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 46 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 B. Household Data: (number of households) 1 . 1 mile ______________________ 2 . 2 mile ______________________ 3 . 2 .5 mile ______________________ C. Income Data: (aver age income) 1 . 1 mile ______________________ 2 . 2 mile ______________________ 3 . 2 .5 mile ______________________ D. Owner Occupied: (percent) 1 . 1 mile ______________________ 2 . 2 mile ______________________ 3 . 2 .5 mile ______________________ 3 . Retail Char acter istics: Type of Real Estate: (See below): NS (Neighbor hood Shopping Center , typically Gr ocer y Anchor ed RS (Regional Shopping Center . Lar ge Box tenants with r egional dr aw) CC (Community Center unanchor ed small str ip center ) LC (Lifestyle Center . High end “tr endy” co-tenants) NA (Non-tr aditional. Does not fit into any of the above categor ies) *Pictures of Site must be submitted with the Site Approval Form 4 . Competitive Data: Dir ect Competitor s: Addr ess: 1. 2. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 47 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 3. 4 .________________________________________________________________ 5 .________________________________________________________________ 5 . Site Infor mation: Pr ojected Deliver y Date: Pr ojected Gar lic Jim’s Constr uction Star t Date: Pr ojected Opening Date: Squar e Footage of Space: _____________________ Sq. Feet Dimensions of Space/ bldg:(w) X (d) ___ = ___ +__ Sq. Feet Pr ior use of Space: Gr ade Elevation of Proper ty r elative to pr imar y street: Same Above Demolition r equir ed: yes no Cur r ent Zoning: ______ Time r equir ed for the city to review plans and issue building per mit: Other issues consider ed impor tant: Below weeks _____ 6 .Tr affic Flow Data: Date of infor mation: Access to the site is: Excellent Good Fair Any restrictions to access such as “No Left Tur ns”? Poor Y N Other issues consider ed impor tant: _____ 7 . Par king: Total Par king Stalls for the Site (entir e center ): Total Par king Stalls for Gar lic Jim’s EXCLUSIVE use: Par king Adequate for Gar lic Jim’s deliver y vehicles dur ing peak hour s use: _____________________________ Other issues consider ed impor tant: ____________________________________ Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 48 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 8 . Accessibility to the Location: Comment on the access to the site fr om all dir ections: _____ Tr affic Contr ol devises at access to site: excellent good fair poor Descr ibe any congestion at or near the inter section and time of day this occur s: _____ ___________________________________________________________ Descr ibe any pr oposed street or highway changes/ impr ovements that might affect accessibility: __________ 9 . Site Visibility: Appr oximate the visibility fr om each direction in which either the building/ space or signage will be seen and r ecognized: Cir cle one of the following: A B C D (see below) A.Visible fr om both str eets at main inter section and consider ed “excellent” visibility B.Good visibility fr om the main access or r ing r oad, inter nal to the shopping center . C.Obstr ucted visibility fr om the secondar y str eet, but clear visibility fr om the pr imary str eet. D.Obstr ucted visibility fr om the pr imar y street, but clear visibility fr om the secondar y str eet. Night visibility is: Excellent Good Fair Poor Other issues consider ed impor tant: ______ __________ ______________________________________________________ _____ _____________________________________________________ Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 49 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 10. Signage: No. of building signs allowed by municipality or Landlor d: W ill Standar d Gar lic Jim’s signage be allowed: Dir ector y, Pole, or M onument sign per mitted: Yes Yes No No Other issues consider ed impor tant: _____ Attachments to be submitted electronically with the Site Approval Form: Once this for m is completed, submit the for m with the following attachments to Garlic Jim’s Famous Gour met Pizza. The necessar y attachments ar e: Site Plan - supplied by your br oker . Fully Executed Let ter of Intent. Signage Plan. Site Photos and Photos of each neighbor hood in tr ade ar ea. Aer ial Photo – Supplied by your br oker . M ap of Tr ade Ar ea – This map must show major competitors, major housing developments, main and secondar y arter ials, major commer cial center s and location of your site. Demogr aphic Repor ts – Supplied by your br oker . Letter of Intent – Supplied by your br oker . Lease Abstr act – Supplied by your br oker . W hen completing the web based Site Appr oval For m you can attach the following types of attachments by simply clicking on the “add files” button, then go to the folder wher e you have each document stor ed, click on the file and it will automatically be attached to your vir tual r ecor d. You can attach the following types of files: M icr osoft W or d Text Files PDF Files JPG Files TIFF Files Digital Pictur es Digital Video Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 50 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 SITE ACCEPTANCE FORM I, ______________________________, have presently located a Garlic Jim’s Famous Gourmet Pizza restaurant site, and feel confident in this location. This site meets all criteria for a Garlic Jim’s Famous Gourmet Pizza restaurant franchise. Please return a copy of this form with your approval as required. I have completed the online Site Approval Form or I have enclosed a hard copy of this form for my location. I further understand that an acceptance of the site and Site Approval Form by Garlic Jim’s Famous Gourmet Pizza, employees, or representative does not mean Garlic Jim’s Famous Gourmet Pizza agrees with and/or approves any or all of the undersigned’s cost estimates, construction estimates, or terms and conditions of the lease or contract to buy the location. Nor does it constitute a recommendation, endorsement, warranty, or guaranty of the suitability of the location, and the undersigned has taken all steps necessary to ascertain that such location is acceptable to the undersigned. (Signature) (Date) DO NOT WRITE BELOW THIS LINE --------------------------------------------------------------------------------------------------------GARLIC JIM’S FAMOUS GOURMET PIZZA., has reviewed your proposed site location and approves or disapproves the site. (Signature) (Date) Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 51 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 E – Garlic Jim’s Approval of Your Site & Lease Execution Once you and the landlor d have signed the Letter of Intent, lease negotiations will begin. You will be sent a letter fr om Gar lic Jim’s or the Gar lic Jim’s appr oved br oker explaining what the next steps ar e involving the leasing pr ocess. Although you will r eceive a letter explaining the specific steps for your market, we have pr ovided the following outline to help you under stand the fundamental elements of the leasing pr ocess. Not all leases will follow this pr ocess but the following outline r epr esents how a typical lease would be cr eated, r eviewed, appr oved distr ibuted and executed. Creation: Once all of the Business Points have been agr eed upon in the Letter of Intent, you and the landlor d will sign the Letter of Intent. Even though in the United States this is a non-binding document and not a legal contr act, the lease negotiating team will not begin r eview of your lease until they are presented with a Letter of Intent that has these signatur es. Once you and the landlor d have signed the Letter of Intent, the landlor d’s r epr esentative will pr epar e a dr aft ver sion of the lease. The landlor d’s r epr esentative will send this to the Gar lic Jim’s approved lease negotiator in your mar ket. You should have r eceived a letter fr om Gar lic Jim’s or the Gar lic Jim’s appr oved br oker explaining what the next steps ar e involving the leasing pr ocess. Please pay special attention to the section telling you wher e you should send your lease negotiation fee because your lease cannot be reviewed until the lease negotiator s have received this. Review: Once the lease negotiator has r eceived their fee they will r eview the lease and make their comments. They will send the lease containing their comments to you and the landlor d simultaneously. They will make extensive comments to assur e that the lease meets Gar lic Jim’s Famous Gour met Pizza’s cor por ate standar ds for appr oval, the final lease often will not contain many of the ver y tenant -or iented points. The goal is to confir m that the lease cor r esponds to the business points in your signed Letter of Intent, and to make the lease acceptable to Gar lic Jim’s Famous Gourmet Pizza. IT IS IM PORTANT THAT YOU CAREFULLY REVIEW THE LEASE. Also, while the lease negotiator strives to achieve r evisions that will make the lease meet Gar lic Jim’s Famous Gour met Pizza’s standar ds for appr oval, they str ongly encour age you to take any fur ther steps you feel necessar y to assur e that the lease is satisfactory to you. The lease negotiator s will contact you to discuss their comments and any you may have which you would like included in the next r ound of negotiations. The lease negotiator will be in constant touch with you dur ing this phase of the leasing pr ocess so that ther e ar e no delays. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 52 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Once you have completed the online Site Appr oval For m and Gar lic Jim’s has received your signed Site Acceptance For m, they will begin a final r eview of your lease to make sur e the cor por ate addendum is attached or incor por ated into the lease and is satisfactor y. If the lease confor ms to Gar lic Jim’s Famous Gour met Pizza’s standar ds and the business ter ms specified in the letter of intent, they will notify you that you ar e author ized to sign the lease as a Gar lic Jim’s Famous Gour met Pizza fr anchisee. Distribution: Once the lease negotiator has been notified that Gar lic Jim’s Famous Gour met Pizza has appr oved the lease, they will ask the landlor d’s r epr esentative to send out execution copies of the lease. These ar e the legal documents that will secure your site. These documents will either be sent dir ectly to you fr om the landlor d or the lease negotiator. Execution: The lease negotiator will notify you in wr iting how you will need to pr oceed at this point. It is typical for you to r eceive thr ee or four copies of the lease, all of which will need to be signed, notar ized and r etur ned to the landlor d. It is impor tant to note that you should be awar e of any Pre-paid Rent or Secur ity Deposits that are due at the time of lease signing. If your lease indicates that these ar e due at this time and you do not include these with the signed leases then the landlor d will not sign the lease and your space could be in jeopar dy. Remember , you can not complete this phase pr ior to signing the Site Acceptance For m. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 53 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Chapter 4: Construction & Equipment Approved Architect “Step 6” Submitting for Building and Health Permits “Step 10” Construction Bids “Step 11” Focus on Marketing Commencement of Construction “Step 13” Equipment Delivery Signage Construction Delays Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 54 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Construction You most likely purchased a Garlic Jim's Famous Gourmet Pizza Franchise because you didn’t want to design your own concept and you wanted to be part of a system. The Garlic Jim's store design is proprietary intellectual property provided only to Franchisees. Our stores are designed with several things in mind: gourmet image, speed & efficiency, functionality and durability. Gourmet Image – The look and feel of our store fronts are meant to differentiate us from our competition. Items such as proprietary exterior and interior neon signage, tile floors, industrial Corian® counter tops, wood veneer wall panels, copper powder coated corner guards, copper powder coated ceiling treatments, interactive flat panel lobby display systems, recessed lighting and soffits set us apart from our “price-point” competitors and communicate to our customers that we are proud of who we are and they can feel comfortable purchasing from us. Our lobbies are designed to reflect the kitchens of the consumers that are purchasing our products. Speed and Efficiency – Producing and delivering a delicious gourmet pizza starts in our kitchens, not with the delivery driver. The equipment we use and the store designs we implement to arrange our kitchen work flows provide you with the ability to take an order, make a pizza, bake a pizza, cut the pizza, box the pizza, and have it available for the driver to deliver in less than ten minutes. Garlic Jim's kitchen designs allow our stores to produce high order volumes for extended time periods. Functionality - Our stores are functional because everything needed to complete a task is right at hand. From labels printing next to ready-to-use pizza boxes to drivers never needing to enter the actual kitchen itself, the Garlic Jim's store design allows every employee to complete their job effectively. Every piece of equipment has its place and serves the common goal of “Gourmet Right Away”. Durability - Garlic Jim's Franchisees could save a few dollars on the construction of their stores by using inferior methods and material during the construction process; however we prefer to look at the bigger picture. In most cases we are signing 10 year commercial leases and our intent is to have beautiful, functional stores for that 10 year time frame with little or no remodeling becoming necessary. This is possible due to the materials we demand and the construction methods we implement. Floor treatments such as tile, FRP covering the kitchen wall and stainless steel corner guards help make the store beautiful, functional and durable. As you can see considerable thought and effort has been put into the overall design and concept of Garlic Jim's Famous Gourmet Pizza. This same thorough attention will be applied to every store. For that reason no material or designed changes can be made without prior written approval from the Garlic Jim's Development Department. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 55 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Architecture, permits, contractors, and actual build-out will all be covered in the “construction phase” of development. “Construction” as a category or phase encompasses several tasks as well as several “steps” on the opening checklist. Approved Architect & Designer: Garlic Jim’s wants to ensure that all prototype revisions and system updates are engineered into your project. For that reason we supply every franchisee with an updated: Basic floor plan for delivery or instant service model Building specs Color board Equipment specs If As-Built information is provided to Garlic Jim's development department we can, upon request, provide a site specific floor plan. If local building code requires architectural and/or mechanical drawings you may be required to hire an architect to complete your drawings. Garlic Jim's has attempted to vet and approve a local architect in each market where we are developing stores. Please see your Franchise Consultant or Area Developer for the updated list of approved architects. Submitting for Building and Health Permits: You should contact your local health department and request a pre-submittal checklist to ensure you are prepared with all the proper documentation prior to submittal. Health codes are managed locally so requirements vary by region. Your general contractor will help you with your building permits. Several of the subcontractors hired by your general contractor will be required to submit for their own permits (electrical, plumbing, etc…). Your Architect, General Contractor and Garlic Jim's area director or corporate construction coordinator are always available to answer any questions you may have as well as address any questions that may arise during plan review. Construction Bids: At Garlic Jim's we are constantly reviewing and refining our processes in order to consistently improve everything we do. Our approved contractor list is no different. Construction companies make this list when they have proven they can build our stores correctly, on time and on budget. In order to keep our build out costs to a minimum we encourage every franchisee to get bids from Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 56 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 multiple contractors in order to evaluate and compare the projected costs of each. While you are welcome to have a new contractor bid on your project provided that they can agree to meet our maximum six week build-out timeline, keep in mind that Garlic Jim’s must approve them before you may begin construction. You are hiring the contractor and they work for you so don’t be afraid to ask questions. Make sure you get your bids in writing as they will need to be forwarded to the corporate office. Verify that your contractor can start your project immediately. Negotiate late delivery penalties and payment schedules. You should also demand that change orders require your prior written consent. Stay Focused on the Right Things: Some franchisees have had a tendency to try to micro-manage the construction process. This is a serious mistake. Stay focused on your marketing, hiring and training plans. You should monitor the construction process via weekly onsite meetings with your construction supervisor. Time spent hanging around the construction site is time that could be spent building brand awareness and sales. The use of an approved contractor that has already built a Garlic Jim’s store will greatly reduce the amount of time spent at the job site. Commencement of Construction: Upon receipt of all your bids from your contractors you will need to make your selection. A written construction schedule will be required before you sign a contract with your construction firm of choice. You will need to submit the following information to the Garlic Jim's corporate office before commencement of construction will be granted: 1. All itemized bids including those from firms that did not win your business. 2. An agreed to construction schedule from your chosen firm. 3. A copy of the signed contract. Exterior & Interior Signage: Signage is another time sensitive component of the construction process, often requiring design engineering to meet site specific requirements or restrictions. In order to assure consistent use of our logo and maximize brand equity you must use one of the sign suppliers from the Approved Vendor List. These vendors have already built signs for Garlic Jim’s stores and are familiar with our criteria as well as local jurisdictional requirements. Keep in mind that signage requires permitting and approval by local agencies and landlords so you will want to begin the process as soon as you execute your lease. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 57 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Construction Delays: It is imperative that significant construction delays be communicated to your franchise consultant so that he can inform other departments within Garlic Jim’s corporate office. Many deliverables are predicated upon the construction schedule; for example the ovens and walk-in cooler cannot be installed until the tile floor in the kitchen has been laid. Your POS computer system cannot be installed until all cabinetry, counter tops, and phone systems are installed. Additionally, many dated and time sensitive advertising mailings will be scheduled on your behalf. Communicating construction delays promptly provides the greatest chance for simple resolutions. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 58 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Chapter 5: Marketing – Pre-Opening & Post-Opening Marketing the Garlic Jim’s Way – Gourmet…Right Away! Marketing Plan Grass Roots Marketing POS Marketing Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 59 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Marketing the Garlic Jim’s Way – Gourmet…Right Away! Garlic Jim’s Customer Who is the Garlic Jim’s customer? Where are they? Each Garlic Jim’s store is placed in a trade area that will be easy to deliver to within prescribed time frames and have a sufficient number of addresses to support a successful Garlic Jim’s store. The trade areas will have the following common characteristics which will allow the necessary concentration of most likely customers in a manageable trade area. - 15,000 or more households within 2 ½ miles of store location. Median age of 37 or less within 2 ½ miles of store location. Household income or $60,000 or more. Drive time of approximately 9 minutes to each edge of delivery area. Garlic Jim’s Marketing System Following a system – a successful business person will utilize a proven system to enhance his/her business acumen, imagination and creativity. When you put the Garlic Jim’s marketing system to work with your specific business and marketing plan you will multiply your knowledge and results exponentially. Garlic Jim’s Customer Service Customer satisfaction is worthless; customer loyalty is the key. Garlic Jim’s standards insist we provide the level of service that our customers want and we will be rewarded with their continued patronage. Even better, if we earn their loyalty, they will market us themselves. Service Standards 10 point pizza quality Hot, delicious gourmet pizza in 30 minutes 95% on time delivery Answer the phone in less than three rings, smile on the phone, call the customer by name Proper crew image and hygiene Garlic Jim’s Positioning Why would someone order a pizza from us? Because we are delivering a better pizza than the other guys that can get to the door as fast as us, and we get to the door faster than anyone with a comparable gourmet product. That’s market positioning! Garlic Jim’s is perfectly positioned in the market with a Unique Selling Proposition (USP) of Gourmet Right Away. We perfectly compete in both the classes of gourmet pizza and quick delivery pizza. With professional uniforms, colors, and lobbies Garlic Jim’s identity is that of professional, upscale, gourmet delivery. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 60 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Sales Building There are three ways to increase your sales - Increase the average sale, Increase purchase frequency and Increase the number of your customers. Increasing the number of customers is commonly called “database building advertising”. There are lots of forms of database building advertising including: direct mail, community involvement with schools and churches, door-hanging, etc. Building a sales plan which includes a healthy dose of direct mail and door hanging is highly recommended at Garlic Jim’s. Increasing purchase frequency is achieved first and foremost by making a great pizza and delivering it on time. Living up to the promise of Gourmet Right Away will keep customers coming back again and again. Also sending regular reminders and notices of special offers to both current and infrequent customers will increase the number of times per month a customer calls you. Garlic Jim’s has several frequency building advertising programs available through Garlic Jim’s Multimedia. Increasing the average sale is a great way to increase your overall sales by doing nothing more than selling more items and more expensive items to your existing customer. There are several ways to upsell: simply informing your customer of other side items such as hot wings or salads that they may have not been aware of or encouraging them to make their medium pizza a large pizza, or asking them if they’d like extra cheese. Many great marketing and up-selling ideas can be found in this section, in the Unit Operations and Policy manual, and on Garlic Jim’s on-line resource page. Garlic Jim’s Marketing Philosophy With the choice of the gourmet category we are not trying to be all things to all people. We have created an identity for Garlic Jim’s famous Gourmet Pizza and selected the most likely areas where we will find the customers interested and hungry for what we deliver. We know the best way to reach these customers is in their community and neighborhoods, right where they live and work. Local store marketing is the backbone of the Garlic Jim’s marketing philosophy and plan. Garlic Jim’s is not a coupon driven pizza company. Instead Garlic Jim’s utilizes discounts during the pre-opening market to encourage trial. After we have the customer we do not want to train them to order only because of the coupon or get the discounted price on each order. We do believe in rewarding the loyal customer with free add-ons and special frequent customer specials, but the idea of slashing the overall menu price by offering a special on every call goes against our identity. We offer the best product to the customer who is willing and able to pay a reasonable rate for that top-ofthe-line product. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 61 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Garlic Jim’s Marketing Plan Two major components: Pre-Opening The marketing before you actually open your new store is incredibly vital. A successful Garlic Jim’s depends on the proper planning and execution of the Nine Weeks to Open Plan. Your present and future success is tied to this marketing effort, not just a successful opening week or two of initial sales. The Step by Step manual and countdown timeline are included in this manual in section 7. Garlic Jim’s will help you execute this marketing plan. That is part of the team effort of Garlic Jim’s. Your Franchise Consultant is your direct contact and point person for this assistance. Please make use of the knowledge and experience they possess. The plan has worked successfully many times and is designed for you to be able to duplicate that success. On-Going Marketing After Store Opening Marketing, marketing, and then even more marketing . . . Don’t Stop Now!! Pizza is a wonderful restaurant category – almost everyone loves pizza. This is to our benefit because there are so many possible customers for Garlic Jim’s. The only caveat is that there are lots of other people trying to get the attention, loyalty and business of the customers we would like to have. Garlic Jim’s, when done correctly, will inspire many loyal customers. The major concern is that at least 40% of all pizza customers are not loyal; they will use or call multiple stores when they want a pizza. This means that all of our competitors are trying to earn that customers business and steal them from you! If you stop marketing to them they will stop thinking of and being reminded of Garlic Jim’s and call the competitor instead of you. That is not a good thing! The solution to this problem is a marketing plan that will put Garlic Jim’s at the top of the list in the customers mind. As the store owner, you need a written plan to replace the store opening timeline. Written is the key. You need a road map to get to your goal. You will replace it with a new marketing plan written just for your store, keeping many of the components of the 9 Weeks to Open Guide plan and adding the basic sales building blocks we’ve already discussed. Store Marketing Plan A written, results oriented, consistently executed marketing plan is essential to your Garlic Jim’s success. This plan will make you the profit that you need and it will help you find and retain customers. It will help you obtain customers from your competitors who do not take care of their customers. It will help you get your customers to both order more and more often from you, two key essentials to any sales increase. Remember, if you can get existing customers to both order more and more often you are cementing into place a very strong pillar of profit for your business. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 62 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Plan Focus Consistently providing Garlic Jim’s excellent customer service to each and every customer. This is now, always has been and will continue to be the most important part of any sales building effort. Unfortunately, it is often the most overlooked and underperformed area. There is no way to keep sales, much less increase them when you are providing less than perfect customer service. This includes delivery times, hot pizza, driver image, quality product and team member attitude. Poor service is the number one reason we lose a customer and it is a higher percentage than the next five reasons put together. Train yourself, your store manager and your crew to incorporate a service aptitude and mentality into each of their interactions with each customer. Your sales will grow, even if you do nothing else, due to the word of mouth that excellent customer service will create in your neighborhood. Identity, proper crew image, lit car top signs, great door approach, proper use of the Garlic Jim’s logo on pizza boxes, box-toppers, menus and all marketing. Direct contact with your customers through database marketing, utilizing doorhanging, boxtopping, post card mailing and letters to increase ticket average and order frequency. Upselling, smiling on the phone, having a continuous flow to each phone conversation, helping the customer to get the best quality pizza and the best dining experience from Garlic Jim’s. Making sure the customer is aware of Garlic Jim’s menu and products and they have a chance to enhance their dining with more than just pizza. Regular analysis of store sales and order characteristics to fashion a targeted campaign. Tracking, break even analysis, food and labor cost and ideal, type and number of customers, order frequency, sector analysis. Basic Sales Building Plan Excellent Customer Service Hot Delicious Gourmet Pizza in 30 minutes Smile on the Phone Proper Door Approach Boxtop on Every Pizza Lunch marketing / business visits Upselling Doorhanging Proper Phone & Door Approach 95% On-time Delivery Call Customer by Name Lit Cartop Signs 100 Surveys per Week 30 visits per week Every Call, Every Time 500 homes, use 3x repeat plan over 2 weeks Advanced Sales Building Daily Customer Callbacks Sampling Postcard Mailings New customer packet Fund Raising Programs Customer Sales Calls by Manager 4 per day by Store Manager In person or letter campaign Individualized plan Delivered to each 1st time caller School nights, peel-a-deal Lost customers w/ guarantee offer Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 63 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Monthly Calendar A typical monthly advertising calendar will have at least 2 weeks of direct mail to help attract new customers as well as prompt existing customers to order again. It will have a week where some POS data base advertising is utilized to increase the frequency of your current customers, and it will be full of doorhanging, boxtopping, banner waving and sampling. Grass roots marketing is always the most beneficial in the long run and must get done. Don’t fall into either of these two traps: 1. Relying on direct mail – mailing four weeks a month is better than nothing but you won’t cut through the clutter by mail alone. It’s hard to distinguish yourself from the competition with mail alone. You have the best pizza in town, finding grass roots ways of getting new customers to sample your product is the best single form of advertising you can do. 2. Relying on grass roots alone – it is true that the best form of advertising is putting the pizza in a potential customer’s mouth. But that’s not enough. The pizza industry is highly competitive and brand loyalty isn’t what it used to be. You need to get your name out there every week to remind everyone that Garlic Jim’s is the superior option! Grass Roots Marketing During pre-opening collect information from customers in your delivery area and enter into a spreadsheet. Use the spreadsheet to help organize parts of the 9 Weeks to Open Guide. The names and addresses can be used later to market and also entered into the point of sale system. o Apartment complexes with manager name, address and phone o Condominium or homeowners groups with manager name, address and phone o Schools with contact information, including sports team booster clubs o Any colleges o Churches with name of contact, address and phone o Locations of any community-type bulletin boards o Collect business cards for all businesses o Email addresses from business people in town o Any medium or large size employer in the area and HR contact information Are you wearing Garlic Jim’s apparel and do you look the part? Get your business cards ASAP as part of your plan should be a goal of how many to hand out daily. Frequency of your marketing message is the key; you will get more sales and better results from a marketing campaign which is repeated to a smaller audience at least 3 times than a message shared once with a larger audience! Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 64 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Point of Sales (POS) System Your POS system is reliable and makes it easy to take an order. But remember it is more than just an expensive cash register. It is also a great sales and cost control tool. Your POS system is also a vital sales building tool. Your POS data base is full of information on everyone who has ordered a pizza from you. There is no way to track, manage and to utilize the information on all of your customers without the help of a database. Learn to use the system and the data that it will keep track of to help you analyze your customers and then use that data to run your Garlic Jim’s business successfully and profitably. Some of the key functions and uses of the POS system are: Point of sale – order taking and helping your CSRs to provide excellent service Sales – history, projections, tracking individual customers and trends Costs – inventory, actual and ideal costs, shrinkage Analysis – sales, customers and ordering habits Tracking information: Sales by hour / day / week / month, past history, average order, price per pizza Customer’s phone number, type categories, how often they order Frequent types of pizzas sold Sale amounts of individual items Crew members and crew teams sales results and characteristics Forecast sales, set up schedules Where and when to target market, whom to target 30 – 60 – 90 day marketing, direct marketing to current and past customers Late cards sent to all customers who received a late pizza Identifying and correcting issues: Costs / actual compared to ideal and the variance Individual food cost items to help identify which toppings items out of control Benefits: Better store Serve more customers Find more customers Sell more pizza Make more profit Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 65 Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 6.24.15 Chapter 6 – The Nine Weeks to Open Guide Date ________ The cornerstone of the opening process is The Nine Weeks to Open Guide. Aggressive and bold, this detailed marketing and recruiting plan, when executed to its fullest, will make your phone ring from day one. The philosophy behind a big opening is to set your store up as “the big guy” in town from minute one. Garlic Jim’s product and services are revolutionary - your opening should be memorable. It’s also the lengthy experience of the “garlic guys” that after a soft open it takes months- sometimes years to obtain the name recognition and market penetration that you can achieve from the start with a big opening. Garlic Jim’s is committed to this nine week process and you must be too! Each week you will meet with your franchise consultant to review the steps in the process. Ensuring that you get the grass roots work done when the plan calls for it is essential to opening strong. Remember; once we’ve made the phone ring you have to service the customers. Gourmet Right Away is what we’re advertising and you need to deliver! Following the recruiting and training portions of The Nine Weeks to Open Guide will help to ensure that you and your crew are ready for the high volume this plan can generate. Please call your franchise consultant regularly during this process and whenever you have a question. Copyright 2015 GJ Franchise Systems, Inc. CONFIDENTIAL – DO NOT DISSEMINATE 66 Date ______________ Nine Weeks to Open Guide Store Name _______________________________ Date ______________ Version 1.4.08 Copyright 2015 GJ Franchise Systems, Inc 67 CONFIDENTIAL – DO NOT DISSEMINATE Time Line to the Opening Day! It’s time to start counting down to the big day! This next section will be a valuable resource as you go through the exciting and hectic weeks before opening day. Use this time line as both a guide and as a place to keep track of all of your important contacts and dates. Every step of this time line gives space for you to write down all of this important information and plenty of room for extra notes. Keep this with you at all times for quick reference when you need it. Use this time line to its fullest potential and your new opening process will be a low-stress and successful one! This book begins at the time your contractor starts working. It is assumed that you have attained all of your Tenant Improvement permits and are legally able to begin construction of your store. It is also assumed that you have completed the franchisee training program. Your duties during the “Nine Weeks to Open” are broken into two categories; Marketing & Training and Build-Out. This book contains an overview of both of these duties as well as a time line of what to do by when to insure your store is fully functional, well staffed and ready for opening day! Congratulations and good luck! Dwayne Northrop Founder Garlic Jim’s Famous Gourmet Pizza KEY PO=Pre-Open week; counting down to your store open. C=Construction week; counting the weeks it takes to build your store. PPL=Permit and punch list week; construction has been completed and your contractor is acquiring your occupancy permit as well as finishing punch list construction items. O=Open week; counting the weeks after open Copyright 2015 GJ Franchise Systems, Inc. 68 CONFIDENTIAL – DO NOT DISSEMINATE Copyright 2015 GJ Franchise Systems, Inc. 69 CONFIDENTIAL – DO NOT DISSEMINATE Marketing & Training Overview Marketing techniques that you will employ: Doorhanging 10,000 ‘Coming Soon’ doorhangers beginning PO4 10,000 ‘Grand Opening’ doorhangers starting opening week. Continue for five weeks. Direct Mail Advo “meet the manager – free” / now hiring - PO6 Advo coming soon / now hiring / with grand opening offers Advo hit on opening day – Grand opening piece – Opening week Val Pak coming soon / now hiring with offers Val Pak Now Open – Grand opening piece Marketing Package Tri-Fold menu/coupon mailer sent to homes-delivery O1&O2 Local distributor – utilize local advertising to fill in the off weeks in an attempt to have some form of direct mail hit every week for at least the first 8 weeks of business If opened for lunch; send business mailings Opening week and O2 Business Visits if Opened for Lunch Daily 30 daily visits by Franchisee or manager beginning PO3 and continuing until all business in delivery area have been visited Opening week menu tape coupons at retail businesses Product Sampling As many samplings as possible; QFC, Albertsons, bank, Red Box… beginning PO3. Minimum of four before opening. Sample nights at each major apartment complex beginning PO3 Banner Shaking ‘Opening Soon’ selected days 2 weeks before open at busy intersections ‘Now Open’ everyday opening week. Select days first month of business. Final Days’ Techniques ‘Now Open’ flyers posted opening week on community bulletin boards Parade of cars with car-tops Sunday prior to Open “Mock-Rush” the Monday before Open Hand out flyers at office buildings early in the morning Leave coupons at transit stops Windshield store parking lots New Customer Kits to hand out in delivery area & on deliveries until supply runs out Press releases to all area papers/newsletters, try to incorporate ribbon cutting ceremony Chamber of Commerce, set up Grand opening ribbon cutting ceremony with Mayor “Thanks for being one of the first” mailer Copyright 2015 GJ Franchise Systems, Inc. 70 CONFIDENTIAL – DO NOT DISSEMINATE List of Marketing Materials: Menus -------------------5,000 Magnets ------------------------- 5,000 Coming Soon Doorhangers -------10,000 Grand Opening Doorhangers -----10,000 Sample Night Doorhangers---------2,500 Tri-Fold Coupon Mailers --------15,000 (more may be purchased at additional cost) Coming Soon Banner (checked out from local co-op) Business cards with store address and phone number Various hand outs and custom pieces in small quantity Various promo items; Frisbees, pens, note pads, slap bracelets Coupons and offers for direct mail pieces Training techniques that you will employ: Recruiting Place job orders employment agencies, state & private Letters to all area church pastors Newspaper ads www.craigslist.com www.worksource.com Post Now Hiring flyers on area college’s bulletin boards High school counselors – letters asking for referrals High school clubs – DECA, FBLA… Local High School sports booster clubs Open Soon & Now Open Doorhangers printed with recruit message Hang “Now Hiring” banner and “Coming Soon” banner Have applications available for prospective employees outside the store front door Pre-Opening Crew Pep Rally- invite families to sample pizzas – hold a “parade of cars” day New Employee Orientation class for new crew PO3 Crew members work in other stores for practice Delivery area tour Mock rush – distribute 200 free cards with specified time frame for customers to order night before opening Hiring Goal: Franchisee / Store Manager 1 Assistant Manager 1 Lunch Manager (if open for lunch) 15 drivers 12 insiders Copyright 2015 GJ Franchise Systems, Inc. 71 CONFIDENTIAL – DO NOT DISSEMINATE List of Recruiting and Employment Materials: Now Hiring banner (Received as part of marketing package) Now Hiring store window signs (Received as part of marketing package) Applications (Online under Employment Forms) Employment packets I9, W4, Employee Information Sheet (online under employment forms) Final Employee Check off Sheet (Online under Management Tools) GJ University “freshman” studies material (Online under Garlic Univ training) Custom flyers (flyers in marketing package, additional handouts ordered from catalog) Ad copy for newspapers and employment papers (franchisee sets up) Build Out Contractors should complete build out within six weeks from commencement. Items that must be coordinated with build out are: Heavy equipment package delivery Phone system install Neon sign install POS install Forward the build-out schedule to the Garlic Jim’s Development Department and the local commissary manager to ensure that the appropriate equipment is ordered, available and shipped to the store location for proper electrical and plumbing installation. Notes and Important Dates: ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ Copyright 2015 GJ Franchise Systems, Inc. 72 CONFIDENTIAL – DO NOT DISSEMINATE As soon as store lease is signed.... These items should be done as soon as you have a signed lease. Secure Phone #_______________________________ Name of phone company_________________________________________ Set up Voicemail Bind Insurance Policy with “Gallagher Risk Management & Insurance Solutions” 1-800-334-1634 Source and Order Heavy Equipment Right Away Estimated arrival date_____________________________________________________ Order Phone System Name of phone system and contact info: ________________________________________________________________________ Order Business Cards Order DSL with a Static IP Address Order POS system Order Exterior Sign Sign company and estimated arrival date: ________________________________________________________________________ Sign up for Payroll Service Apply for Building and Health permits Start Hiring Process for Store Manager Order all Pre-Open / Grand Opening Marketing Material (no later than PO9) Your Franchise consultant will provide a copy of the Marketing Package form to fill out as well as explain what the contents of the Marketing package are used for. Copyright 2015 GJ Franchise Systems, Inc. 73 CONFIDENTIAL – DO NOT DISSEMINATE PO9/C1__ /__ /__ Confirm In-Home Dates for Direct Mail Pieces Date____________________________Mail Piece_______________________________ Date____________________________Mail Piece_______________________________ Date____________________________Mail Piece_______________________________ This is the time to order your Advo piece that will go out six weeks before opening date. This piece will have the “FREE-Meet the Manager” coupon on it. ADVO contact info________________________________________________________ Make sure that you insist on proofs on all of your direct mail pieces. Then have at least two different individuals proof the piece very carefully! Also keep your approved proofs to use as a reference when the ad piece comes out. 5467 is more that just a series of numbers-it’s JIMS! When you contact your phone company, try to get a JIMS number for your main line (line 1) if possible! Copy your Franchise Consultant on all advertising proofs to ensure a successful Grand Opening Pass out 25 Business cards to businesses in your area, start networking and building relationships within the community Complete and fax to your Franchise Consultant Copyright 2015 GJ Franchise Systems, Inc. 74 CONFIDENTIAL – DO NOT DISSEMINATE PO8/C2__ /__ Drive the delivery area and make a detailed map of every: school church community center apartment complex competitors housing developments Pass out 25 Business cards to businesses in your area, continue networking and building relationships Begin Collecting Apartment Maps and arranging for sampling nights Dates/Apartments:______________________________________________________ Dates/Apartments:______________________________________________________ Dates/Apartments:______________________________________________________ Dates/Apartments:______________________________________________________ Order all extra recruiting and promotional material that weren’t part of the marketing package (Newspaper ads, additional hiring flyers from media catalogue, etc.) Details: ________________________________________________________________________ ________________________________________________________________________ Join the Chamber of Commerce, schedule an insert in the newsletter and arrange for the Chamber to attend the ribbon cutting on opening week. (Ideally done the Monday of opening week during mid-afternoon) Ribbon cutting date and contact info: ________________________________________________________________________ Order Delivery Area map See attached document on the next page for instructions on how to order from Rand Mcnally.com Complete and fax to your Franchise Consultant Copyright 2015 GJ Franchise Systems, Inc. 75 CONFIDENTIAL – DO NOT DISSEMINATE Rand McNally 1. Go to www.randmcnally.com 2. Underneath the tab, “Maps & Guides”, choose “Custom Wall Maps” 3. Click on “Create Your Map” 4. Enter your store address. Click “Next” 5. Enter the Title for your map - the store name is all you need to put in this section. 6. Select Street-Level map. 7. Select Wide/Landscape map. 8. Select Large size map. 9. The last option on this page is whether or not you want an index for your map. Choose Yes. Then click Next. 10. You should now be looking at the map. On the right side of the map there is a zoom in and zoom out slider. In the middle is an adjust button. Slide that adjust button all the way to the top which will zoom you in as far as you can zoom in. This should give you a 4-5 mile print Area. You can now drag the map in the background to get the map area that you want within the “Print Area”. Once you are satisfied with your area within the “Print Area” click Next. 11. At this point you can preview your map, make additional edits and purchase it. Copyright 2015 GJ Franchise Systems, Inc. 76 CONFIDENTIAL – DO NOT DISSEMINATE PO7/C3__ /__ /__ Mount “Opening Soon” banner at store Date Completed________________________________________________________ Visit Schools-make contacts for events/fundraisers Schools Visited _______________________________ Contact Information ___________________________________ _______________________________ ___________________________________ _______________________________ ___________________________________ _______________________________ ___________________________________ _______________________________ ____________________________________ Continue Contacting Apartments Pass out 25 Business cards to businesses in your area, continue networking and building relationships Contact area stores, get permission to sample product Stores contacted ________________________________ ________________________________ ________________________________ Set up Pepsi account and secure Pepsi promotional material (Free giveaway drawing, arrange cooler install.) Pepsi Contact Info: ________________________________________________________ Giveaway details:_________________________________________________________ Set up Ice Cream account, arrange freezer install Ice Cream contact info: ________________________________________________________________________ Complete and fax to your Franchise Consultant Copyright 2015 GJ Franchise Systems, Inc. 77 CONFIDENTIAL – DO NOT DISSEMINATE PO6/C4__ /__ /__ Mount “Now Hiring” banner at store Call local colleges to place job order w/ counseling office Colleges:________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ Post recruitment flyer with local colleges Colleges:________________________________________________________________ ________________________________________________________________________ Pass out 25 Business cards to businesses in your area, continue networking and building relationships Get Credit Card System ordered and set up Place now hiring ad in newspapers Newspapers: ________________________________________________________________________ ________________________________________________________________________ Place job orders w/employment agencies Agencies: _______________________________________________________________________ ________________________________________________________________________ Complete and fax to your Franchise Consultant “Meet the Manager” coupon in homes The Meet the Manager mailer is now on refrigerators all over your delivery area. Each and every day potential customers will be looking at your name and number in anticipation of trying Garlic Jim’s Famous Gourmet Pizza!!! Copyright 2015 GJ Franchise Systems, Inc. 78 CONFIDENTIAL – DO NOT DISSEMINATE PO5/C5__ /__ /__ Mount exterior sign as soon as possible Install Date:____________________________________________________________ Complete contacting churches and apartments Make final list and schedule for sampling nights Schedule: Apartment Name: Date/Time: _________________________________ ___________________ _________________________________ ___________________ _________________________________ ___________________ _________________________________ ___________________ _________________________________ ___________________ Pass out 25 Business cards to businesses in your area, continue networking and building relationships Receive applications, begin processing Number of applications to date:__________________________________________ Coming soon / now hiring direct mail piece (if applicable) Piece:_______________________________ In Home Date:___________________ Piece:_______________________________ In Home Date:___________________ Piece:_______________________________ In Home Date:___________________ Complete and fax to your Franchise Consultant Hang flyers or door-hangers on all the apartments who are scheduled for sample nights with date and times of the sample nights. Make sure you process any early applications & call to schedule interviews for next week. Copyright 2015 GJ Franchise Systems, Inc. 79 CONFIDENTIAL – DO NOT DISSEMINATE PO4/PPL__ /__ /__ Conduct a walk through with your contractor/Punch List items Date of walk through_____________________________________________________ Install POS (ensure we are hooked up to a Static IP DSL line) Date of installation_______________________________________________________ Install Phone system (5-incoming lines and 1 fax line) Date of installation_______________________________________________________ Begin interviewing and hiring at set times 3 hours per day Interview Dates and Times: _______________________________________________________________________ _______________________________________________________________________ Pass out 25 Business cards to businesses in your area, continue networking and building relationships Door hang minimum 2500 addresses with coming soon piece Door hanging dates: _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ Mount delivery wall map Obtain Occupancy Permit It’s important to get your door-hanging done. Try to employ the help of new hires-just get a couple hundred out a day! Coming soon / now hiring direct mail piece (if applicable) Piece:_______________________________ In Home Date:___________________ Piece:_______________________________ In Home Date:___________________ Piece:_______________________________ In Home Date:___________________ Complete and fax to your Franchise Consultant Copyright 2015 GJ Franchise Systems, Inc. 80 CONFIDENTIAL – DO NOT DISSEMINATE PO3__ /__ /__ Conduct NEO class and begin training Date of NEO class_____________________________________________________ Receive first product delivery Date of first product delivery _________________________________________ Take possession of small wares package including uniforms (see attached documents on next page for list of small wares to be received) Details: _____________________________________________________________ Order any remaining supplies / office supplies Supplies needed_________________________________________________________ _______________________________________________________________________ Pass out 25 Business cards to businesses in your area, continue networking and building relationships Door hang minimum 2500 addresses with coming soon piece Door hanging dates: _________________________________ _________________________________ _________________________________ _________________________________ Prepare business mailer Sampling nights when scheduled Scheduled Dates this week: ___________________________________ __________________________________ ___________________________________ __________________________________ Coming soon / now hiring direct mail piece (if applicable) Piece _________________________ In Home Date ________________________ Piece _________________________ In Home Date ________________________ Complete and fax to your Franchise Consultant NEO week is very important! Getting your new crew off to the right start will make the next few weeks of training much more productive; helping to insure your open goes off without a hitch! Copyright 2015 GJ Franchise Systems, Inc. 81 CONFIDENTIAL – DO NOT DISSEMINATE SMALL WARES PACKAGE Qty Item # Description Unit Cost Unit Price Ext Price REVISED 5/10/2007 2 ea AMM 18040 Pizza screen rack 48 ea AMM 18712 12" Pizza Screen 84 ea AMM 18714 14" Pizza Screen 24 ea AMM 1816 16" Pizza Screen 2 ea AMM 19029 15 Slot pizza pan rack 1 ea AMM 19085 2 ea AMM 2814 31" Bubble popper 14" X 16" Alum blade, 28" OA length 2 ea AMM DD5704 12 ea 6 ea 30 ea CAM 12SFSCW CAM 2SFSCW CL CAM 4SFSCW CL Dough Docker Clear square 12 qt storage container Clear square 2 quart storage container Clear square 4 quart storage container 12 ea CAM SFC12 BL Blue lid for 12 qt container 36 ea CAM SFC2 GR Green lid for 2 and 4 qt containers 2 ea CAM 16CW CL 18 ea CAM 36CW CL Full size pan 6" deep 1/3 size pan 6" deep** 32 ea CAM 66CW CL 1/6 size pan 6" deep 4 ea CAM 64CW CL 1/6 size pan 4" deep 6 ea CAM 94CW CL 1/9 size pan 4" deep 1 ea CAR 40340 Mop Handle 2 ea CAR 40391 1" Pastry Brush for cold products 2 ea CAR 40481 2 ea CAR 40541 Bench Brush Short handled gong brush for dishes 1 ea CAR 45267 Push Broom Handle, & block 1 ea EDL 11100 #1 Can opener With Base 7 ea LIN 5303 Half size sheet pan/ makeline tray 2 ea NEW 1121 20" x 36" T-Bar wall shelf 3 ea RUB 1905 Rubber spatula 13" 1 ea RUB 2005 Dust Pan 2 ea RUB 6384 Corn Broom 1 ea RUB 7580 YE Mop Bucket/Wringer Combo, Yellow 1 ea RUB F119 Cotton String Mop Head 3 ea AMM PPC4 4" pizza cutter 2 ea AMM PPC5 5" Pizza cutter Copyright 2015 GJ Franchise Systems, Inc. 82 CONFIDENTIAL – DO NOT DISSEMINATE 1 ea RUS S14510 10" Chefs Knife 1 ea RUS S14710SC 10" serrated bread knife 2 ea TBL P800 12 oz cheese shaker 3 ea TRX 2536 36" ticket rail 1 ea VOL 47969 8 Qt. S/S colander 4 ea VOL 61157 2 oz solid spoodle 4 ea VOL 61172 4 oz solid spoodle 12 ea VOL 75012 12" Adapter bar 1 ea YAM PB200 Electronic pizza scale 4 ea Squeeze Bottle 1 ea Flour Bowl 1 ea Utility scoop 4 ea Stem Thermometer 1 3 ea ea Digital Thermometer Towel Dispenser 3 ea Foaming hand soap dispenser 2 ea Dough Scraper 1 ea Bragger stand ** 1/3 pans included with Item 15-1 Make line (made by Master-Bilt) ADDITIONAL AVAILABLE ITEMS ea AMM 18708 ea ea ea ea ea ea ea EDL K004SP PCW4 PCW5 CAM 16CW CL CAM 36CW CL CAM 66CW CL CAM 64CW CL 8" Pizza Screen Replacement knife for #1 Can opener 4" Replacement cutter blade 5" Replacement cutter blade Full size pan 6" deep 1/3 size pan 6 " deep 1/6 size pan 6" deep 1/6 size pan 4" deep ea CAM 94CW CL 1/9 size pan 4" deep ea VOL 75012 12" Adapter bar Copyright 2015 GJ Franchise Systems, Inc. 83 CONFIDENTIAL – DO NOT DISSEMINATE PO2__ /__ /__ Continue training Training Dates: _________________________________ _________________________________ _________________________________ _________________________________ Refresh “open soon” flyers/menus bulletin boards Daily Business visits if opened for lunch Visit Schedule:___________________________________________________________ _______________________________________________________________________ Pass out 25 Business cards to businesses in your area, continue networking and building relationships Door hang minimum 2500 addresses with coming soon piece Door hanging dates: _________________________________ ________________________________ Mail business mailer if opened for lunch Sampling nights when scheduled Scheduled Dates this week: ___________________________________ ___________________________________ __________________________________ __________________________________ Banner wave opening soon Coming soon/now hiring direct mail piece (if applicable) Piece _________________________ In Home Date ________________________ Piece _________________________ In Home Date ________________________ Send out invitations to Ribbon Cutting Event!!! Complete and fax to your Franchise Consultant Copyright 2015 GJ Franchise Systems, Inc. 84 CONFIDENTIAL – DO NOT DISSEMINATE PO1__ /__ /__ Continue training Training Dates: _________________________________ _________________________________ _________________________________ _________________________________ Delivery area tour w/ drivers parade the area (Sunday) Pass out 25 Business cards to businesses in your area, continue networking and building relationships Door hang minimum 2500 addresses with coming soon piece Door hanging dates: _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ Sampling event for crew, family and friends Date and time: Sampling nights when scheduled Scheduled Dates this week: ___________________________________ __________________________________ ___________________________________ __________________________________ Make at least 200 pizzas during training to give to future customers for sampling. Make-line training week is a great opportunity to get Garlic Jim’s fabulous pizza into the mouths of future customers! Tell people that your crew needs practice making pizzas and that they need practice eating them!! Be creative and get that product out there!! I continued next page Copyright 2015 GJ Franchise Systems, Inc. 85 CONFIDENTIAL – DO NOT DISSEMINATE PO1 Continued Banner wave opening soon Assemble delivery area map book Coming soon/now hiring direct mail piece (if applicable) Piece _________________________ In Home Date ________________________ Piece _________________________ In Home Date ________________________ Distribute Mock rush cards (200 total) How/where cards will be distributed:_________________________________________ Quantity of each time window: Time Slot 5:00-5:30 5:30-6:00 6:00-6:30 6:30-7:00 7:00-7:30 7:30-8:00 Delivery 12 13 12 13 12 13 Carry Out 21 21 21 21 21 21 *Make certain that when distributing mock rush cards that you are passing them out to people in your delivery area Complete and fax to your Franchise Consultant Copyright 2015 GJ Franchise Systems, Inc. 86 CONFIDENTIAL – DO NOT DISSEMINATE Opening Week Mock rush training (Monday) Mock Rush starts at 5:00pm and ends at 8:30-9:00 pm Ribbon cutting ceremony (Ideally held on the day before Grand Opening) Date & Time:__________________________________________ Post “Now Open” flyers and menus on bulletin boards Menu tape all week Places taped: ____________________________________________________________________ ____________________________________________________________________ Pass out 25 Business cards to businesses in your area, Continue networking and building relationships Door hang minimum 2500 addresses with coming soon piece Door hanging dates: _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ Call Back 5 Customers EVERY DAY! Grand opening ADVO piece in homes on Tuesday Banner wave EVERY DAY Replace coming soon banner with NOW OPEN banner Verify all coupon codes are programmed into POS system Gold Hat Franchisee! If the store sales for the first opening week exceed $15,000! Copyright 2015 GJ Franchise Systems, Inc. 87 CONFIDENTIAL – DO NOT DISSEMINATE O2 Door hanging “NOW OPEN” at least 2000 Door hanging dates: _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ Pass out 25 Business cards to businesses in your area, Continue networking and building relationships Call Back Five Customers EVERY DAY! Banner wave EVERY DAY! Make sure that you input your Garlic Codes for the Tri-Fold mailers in the computer at least 2 days before scheduled in home date. The tri-fold mailers have a less accurate in home date then other mail house pieces. Make sure that you do not neglect your customer call backs! Even though you will probably be tired and a little overwhelmed, these callbacks are vital to get a snapshot of how your customers are reacting. Copyright 2015 GJ Franchise Systems, Inc. 88 CONFIDENTIAL – DO NOT DISSEMINATE O3 Banner Wave Select Days Scheduled Days: ___________________ ___________________ ___________________ Door hanging “NOW OPEN” at least 3000 Door hanging dates: _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ Pass out 25 Business cards to businesses in your area, Continue networking and building relationships Call Back 5 Customers EVERY DAY! Now OPEN Direct Mail Piece Name of Mail house and piece_____________________________________________ In home date________ Your crew has been working very hard. Pass out movie gift certificates or something nice to show your appreciation. Don’t forget that a well taken care of crew that feels confident about their job duties is vital to your success!!! Copyright 2015 GJ Franchise Systems, Inc. 89 CONFIDENTIAL – DO NOT DISSEMINATE O4 Banner Wave Select Days Scheduled Days: ___________________ ___________________ ___________________ Door hanging “NOW OPEN” at least 3000 Door hanging dates: _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ Copyright 2015 GJ Franchise Systems, Inc. 90 CONFIDENTIAL – DO NOT DISSEMINATE Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 1.8.08 Pass out 25 Business cards to businesses in your area, Continue networking and building relationships Call Back Five Customers EVERY DAY! Send “Thanks for being the first to order” mailer Details of this mailing______________________________________________________ ________________________________________________________________________ Review open and ongoing marketing plan with your Franchise consultant Reviewed By____________________________________________________________ Signature of Franchise Consultant Copyright 2015 GJ Franchise Systems, Inc. 110 CONFIDENTIAL – DO NOT DISSEMINATE Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 1.8.08 Notes _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ Copyright 2015 GJ Franchise Systems, Inc. 111 CONFIDENTIAL – DO NOT DISSEMINATE Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 1.8.08 Chapter 7: Food Distribution Garlic Jim’s Food Distribution Partners Your First Food Delivery “Step 18” Local Contacts Copyright 2015 GJ Franchise Systems, Inc. 112 CONFIDENTIAL – DO NOT DISSEMINATE Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 1.8.08 Garlic Jim’s Distributor Partners Proprietary high quality food products are what make the Garlic Jim's Famous Gourmet Pizza famous and gourmet. In every market Garlic Jim's has partnered with a local distributor to provide these superior products to your store at very competitive prices. Your Distributor Partner is your one stop shopping solution for food and supplies for your new Garlic Jim’s pizza store. As part of our commitment to lowering prices to our franchises, Garlic Jim’s works closely with our food and equipment vendors. Each franchisee is required under their franchise agreement to purchase all food products from their approved Distributor Partner. This allows them to forecast the needs of the market and negotiate the best possible prices with suppliers in order to leverage the buying power of the entire company for the benefit of everyone involved. Your First Food Delivery Once you have a walk-in cooler and an oven you can begin sampling product to promote your opening. For this you’ll need food – lots of food. Your first food delivery is when you’ll receive a little of everything you need to make every menu item at Garlic Jim’s. Although the quantities of each product are small, the overall order will be very large because of the quantity of lesser used items. Before you can receive this order you’ll have to give your local Distributor Partner a key to your space, an alarm code if you have an alarm and have completed their customer information form and payment forms. These three steps should have already been performed, but simply must be done now if they’ve been missed. The majority of your first food order is already set by Garlic Jim's as a standard order; however you and your franchise consultant will have to review your marketing and sampling schedule before making the order to ensure you receive enough dough and perishable items such as vegetables and cheese. Garlic Jim’s local Distributor Partner Contacts ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ Copyright 2015 GJ Franchise Systems, Inc. 113 CONFIDENTIAL – DO NOT DISSEMINATE Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 1.8.08 Chapter 8 – Reporting & Recordkeeping Reports Recordkeeping Copyright 2015 GJ Franchise Systems, Inc. 114 CONFIDENTIAL – DO NOT DISSEMINATE Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 1.8.08 Reports As a Garlic Jim’s franchisee and business owner there are many requirements and necessary business records to maintain. Your business records will be a vital component of your successful operation. Business records will be needed for several major areas of responsibility. You and your company will be required to maintain records and produce reports for each of these areas of responsibility. The areas are: Garlic Jim’s Franchise Systems requirements, government, for both monitoring and legal rules, personnel issues and good business practices. The following recordkeeping and reporting requirements are: GJ Franchise Systems, Inc. The first area of reporting and recordkeeping required by Garlic Jim’s is accounting. Accurate and complete sales records are a contractual obligation and include the following: Weekly – report gross sales, royalties due, food payments due, and other required service information including labor and on-time percentages every Monday by completing the Garlic Jim’s End of Week (EOW) report found on the resource page. Monthly – the Garlic Jim’s End of Month report is very similar to the daily version and also can be found online on the resource page. Annually - full financial statements reported 60 days after the end of the calendar year, prepared by a CPA and a copy of your business tax return. There may be new and/or additional monthly or quarterly requirements, so be sure to check with your Franchise Consultant for the complete current list of recordkeeping and reporting requirements before your store opens. The second area of reporting and recordkeeping concerns liability. Following these guidelines will help to protect you in case of an accident or lawsuit. Maintain liability insurance as required by both Garlic Jim’s and state. This insurance must be both non-owned auto and general business liability insurance. Maintain records showing current motor vehicle reports and drivers licenses for all employees who drive a vehicle as part of their job. Copyright 2015 GJ Franchise Systems, Inc. 115 CONFIDENTIAL – DO NOT DISSEMINATE Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 1.8.08 Maintain accurate and current records showing all employees who drive have the proper insurance for the vehicles used to drive. The third area of reporting and recordkeeping is information. As a Garlic Jim’s franchisee you have a POS system that collects information on your sales, your customers, and their buying habits. This information is valuable, for both historical and future uses. Most important, it can help you sell more pizza and make more profit. Make use of the reports and information that the Intura POS can provide to you. You will learn more about the reports that your POS can provide you during your franchisee training. Government There are several different areas and levels of government that require records and reports from a Garlic Jim’s franchisee. Each state has their own set of laws and codes, so be sure to find out the requirements for the state that you do business in. Multiple government agencies also place some responsibilities on you. local – business license – usually must be posted local – health district – sanitation requirements, notices state – sales tax reporting and payment state – unemployment tax on your employees state – worker’s compensation taxes federal – OSHA – safety rules, compliance logs and reporting federal – ADA – American with Disabilities ACT – posters, notices, practices federal – EEOC – various employment, hiring practices and notices federal – INS – I-9 forms for each employee, employment federal – Department of Labor – notices and personnel file requirements federal – IRS – W4, employment requirement and personnel file requirement federal – all employment law notices posted Recordkeeping Personnel Issues Applications – all completed applications need to be kept for 2 years. Employee files must be maintained for every employee and must be kept after termination for 4 years. Documentation needed for hire: signed application signed and completed I-9 signed W-4 form copy of Drivers License and MVR copy of ID used for I-9 Copyright 2015 GJ Franchise Systems, Inc. 116 CONFIDENTIAL – DO NOT DISSEMINATE Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 1.8.08 Documentation to maintain in employee file: current copy of vehicle insurance MVR updated every 6 months copy drivers license updated as needed signed receipt of company policies signed receipt of NEO training and other training classes all employee counseling forms, if any signed receipt of safety training monthly vehicle safety inspections anti-harassment policy sign off food handler’s card Many of the required reports and forms may be available to Garlic Jim’s franchisees on the Garlic Jim’s website or by polling through the POS system. Please check with your Franchise Consultant at or before store opening for the most current reporting procedures in your area. Copyright 2015 GJ Franchise Systems, Inc. 117 CONFIDENTIAL – DO NOT DISSEMINATE Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 1.8.08 Chapter 9 – Training & Continuing Education Franchisee Training Employee Training Garlic Jim’s University of Pizzaology Team Building/Training Resources Franchisee Training Copyright 2015 GJ Franchise Systems, Inc. 118 CONFIDENTIAL – DO NOT DISSEMINATE Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 1.8.08 You may or may not have worked in pizza before. You may or may not have worked in the food industry or in customer service. Either way we will teach you the Garlic Jim’s Way! The Garlic Jim’s Way is how Garlic Jim’s Famous Gourmet Pizza operates inside the store to ensure we deliver “Gourmet Right Away.” You will learn this process in four short weeks. That’s right- four power-packed, long and challenging weeks! After completing step 4 or 5 you will be contacted by Garlic Jim’s training department to schedule your 4 week training course. In most cases your training will be conducted at a store in your area operated by a Certified Training Partner. But you are always welcome to come to Seattle to train with corporate staff. You must complete your training before pre-open week 6 (see section 7). Your training material will consist of a Franchise Training syllabus - the 20 course Garlic Jim’s University of Pizzaology, the Garlic Jim’s Policies and Procedures Manual, and various other classes, handouts, PowerPoint presentations, and on-line material. Employee Training Training is an area that tends to be overlooked in many business settings. Training seems to be almost an after-thought instead of a vital aspect of the business plan and the company when it is actually functioning. You have committed to be a Garlic Jim’s franchisee, the owner of your own business. You want it to be a good return on your investment and a source of both profit and pride. One way to ensure that your vision of pride and profit are met is to have a well-trained, customer service oriented team representing Garlic Jim’s in your community. Each of the people working with you is representing you to your community. The financial investment in training is well worth the dollars spent. Training your team members properly upfront will reap rewards both in customer satisfaction and loyalty and longevity. Team members that know and understand their job work both longer and better. One of the other benefits of well-trained team members is they do the job without as much supervision and they do it better, which costs less. And this saves you money! A second benefit is the synergy created by a team that knows and understands the functions of the Garlic Jim’s store, together everyone achieves more. Overview of Garlic Jim’s University of Pizzaology Garlic Jim’s Famous Gourmet Pizza has formed a training program to ensure that the Garlic Jim’s Way is instilled to all team members. The program includes training for all levels of Garlic Jim’s functions from the brand new franchisee to front-line team members serving customers daily. These programs will enable you to learn the Garlic Jim’s Way, to share the Garlic Jim’s way with your team and to create customer loyalty for your Garlic Jim’s store and products. Copyright 2015 GJ Franchise Systems, Inc. 119 CONFIDENTIAL – DO NOT DISSEMINATE Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 1.8.08 Complete Program Overview Associate Program Freshman Studies – Team Member All Team Members need to complete 1- NEO Class 2- Pizza Topping 3- Order Taking 4- Driver Training 5- Safety and Sanitation Sophomore Studies – Team Leader For early management candidates & strong crew members 1- Food Prep 2- Dough Management, Sheeting and Throwing 3- Oven Tending and Routing 4- Relations – Customer/Employee 5- POS Skills Bachelors Program Junior Studies – Assistant Manager For Store Manager Candidates 1- Cash Procedures 2- Opening Procedures 3- Closing Procedures 4- Advanced Safety Course 5- Variable Cost Management Senior Studies – Store Manager For Store Manager candidates & further training for Store Managers 1- Food Ordering 2- Scheduling 3- Weekly/Monthly Procedures 4- Leadership Skills 5- Advanced Equipment Maintenance Pre-Masters Level 1- Marketing 2- Recruiting 3- Training Masters Program Masters in Multi-Store Supervision Copyright 2015 GJ Franchise Systems, Inc. 120 CONFIDENTIAL – DO NOT DISSEMINATE Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 1.8.08 Masters in Training Masters in Franchise Consulting Masters in Franchising Doctorate Program Multiple Store Franchisee Sub Franchisee Team Building – Recruitment Building the right team to staff your Garlic Jim’s store is very important. There really is only one rule for building the right team: Choose Well! At Garlic Jim’s we need the right type of people to represent us to our customers and the public. The right team members hired and trained well in the Garlic Jim’s Way will help you create a true team that will be ambassadors for Garlic Jim’s to your community. To recruit the right team members you will need to include recruitment in your business plan and your marketing plan. The recruitment effort will start before your store opens and is detailed in The Nine Weeks to Open Guide. Your recruitment effort will need to continue after you are open. Your recruitment effort should be a regular part of the culture in your store and begin with you. Garlic Jim’s is a great company and a great place to work. It’s fun for you and your team. These feelings will be projected to your customers and to the community and help you to attract the right candidates to become Garlic Jim’s team members. Some recruiting methods, ideas and techniques follow: Current Team Members o A buddy system with rewards for recruitment, hiring and retention by team members o Personal business cards with a recruitment message on back o Keep a file of under-age applicants and contact when they come of age Drive-By Traffic o A-frame sign outside your store o Recruitment banner outside your store o Banner wave “Now Hiring” Local Neighborhood and Businesses o Distribute job opportunities boxtoppers o Personally speak with business neighbors about your needs Outside Organizations o Order from your competition, look for talent and recruit that talent o Networking groups, join and mention your needs General Public o Personal business cards with recruitment message for yourself o Post job order with both private and public employment agencies o Post flyers at local church bulletin boards o Post job orders with local college job center Copyright 2015 GJ Franchise Systems, Inc. 121 CONFIDENTIAL – DO NOT DISSEMINATE Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 1.8.08 o o o o o o o Post flyers at community centers Speak with high school and college business classes Participate in local college career days Utilize your database of churches and periodic recruitment letters to pastors Include flyers with welcome wagon or other type move-in service Create a job line phone number Host your own job fair Team Building – Interviewing / Hiring Once you have recruited and located applicants, now is the time for the maxim: Choose Well. We must choose the best possible applicants from the pool for the Garlic Jim’s Team. The Garlic Jim’s Way is to hire for customer aptitude, then train for customer skills. As a franchisee you should approach both sides of the formula equally. Here are a few interviewing/hiring techniques to use: Interviewing o o o o o o o o CSRs trained to welcome all walk-in applicants CSRs know where blank applications located Set regular scheduled times and a private space to conduct interviews Utilize an interview format that is the same for all applicants Take notes during interviews to remember the salient facts and thoughts Utilize the Garlic Jim’s interview form Check references on all applicants before hiring All applications filled out in the store and blank ones not to leave the store Hiring o o o o o o o All driver applicants have a valid Motor Vehicle Record Establish a procedure for new hires to be welcomed to the company System for all employee files to be set up Uniforms issued All new team members attend NEO and all team member GU Pizzaology classes All new team members assigned a ‘training buddy’ for mentoring Store Manager quick review at one week anniversary, check on feelings, etc. Team Building – Retention The Garlic Jim’s Way is to Train to Retain. Once you have recruited, found and hired the Right Team Members you want to keep them on your team. One of the key methods to keep your Team Members is proper training. If your employees know and understand their job it is easier for them to be part of the Team and to feel better about their choice to be part of the Garlic Jim’s Team. Training costs less than the alternative. The alternative is repetitive Copyright 2015 GJ Franchise Systems, Inc. 122 CONFIDENTIAL – DO NOT DISSEMINATE Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 1.8.08 recruiting, hiring and training – over and over again for the same position. This repetition costs you as the Franchisee in loss of possible profits. The alternative is the store manager and the franchisee having to work twice as hard to just maintain the store because there are not enough properly trained team members. The alternative is poor customer service – customers who do not receive the full benefit of the Garlic Jim’s experience, customers who do not get treated properly, customer who do not receive their pizza with timely delivery, customers who get put on hold for too long. The alternative is a Garlic Jim’s store that does not return the pride and profit that, you the franchisee, desired, hoped and invested for. Several retention techniques and ideas follow: Share your plan and your goals and the Garlic Jim’s Way Teach your expectations and how to meet them Have a desire to create long term team members and express it Create a system to retain your team members and reward them Create a meritocracy; those who perform the best get the best rewards Eliminate those who refuse to meet the expectations and standards Provide avenues for job advancement Resources Many times during the real estate and construction window, there can be a period of waiting time, even after you accomplished all of the above general business tasks. It is smart to use this waiting time to your advantage to be prepared for the upcoming marketing, opening and operating of your store. The list of business resources out there is endless. Below are some of the Garlic Jim’s resources that are available to you and some suggested reading. We recommend getting a great start in owning your own business by utilizing these resources. The more that you are able to absorb, the greater your chance of success. Use this time wisely, learning as much as you can about every aspect of this business and your will be well on your way to having a winning store long before you ever open your doors for business. Study the Garlic Jim’s system, learn as much as possible New franchisee training - how to maximize & put to best use o Franchisee training – it’s never too early to start your official training. Garlic Jim’s has a four week in-store training program, followed by several classroom style presentations covering topics such as advertising and bookkeeping. It is best to have completed training prior to pre-open week 8. Therefore scheduling training no later than lease signing is advisable. o Read the training section of this book to familiarize yourself with the training process. Webpage resources- The Garlic Jim’s resource page located on our webpage is an excellent place to find valuable resources as well as great information and forums about running a pizza store. Below Copyright 2015 GJ Franchise Systems, Inc. 123 CONFIDENTIAL – DO NOT DISSEMINATE Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 1.8.08 are the main sections of this page. As soon as you are an official Garlic Jim’s franchisee you will be given a password to access the “Resources” and “Real Estate” tabs of our website. Now you will be able to log in and explore the following resource pages. o The “Newswire” tab lets you read all of the following Garlic Jim’s news items. “Latest News”, which is all of the different news articles that have been written about Garlic Jim’s. “Newsletters” are the inter-company print publications that are periodically sent to our employees as well as investors and franchisees. The “Weekly Communication” is the archive of all of our Wednesday Weekly Communications that are emailed to every franchisee. As soon as you complete Step 7 of the 21 Steps to Opening Day you will be receiving these emails with valuable information about the Garlic Jim’s system. o The “Advertising” tab contains advertising information that you will be able to use to market your store. The “Order Form” is the easiest way to order marketing materials from Garlic Jim’s MultiMedia department. The “Catalog” is the latest version of Garlic Jim’s MultiMedia catalog which contains a ton of advertising print material including doorhangers, boxtoppers, promotional items and much more. The “Lobby Promo Order” tab is the form that you will use to order the promotional items to sell in your lobby. The “Advertising Co-op” tab is where you will find valuable information about your local and national advertising co-op ads that will be on the radio, on the T.V. or in print publications. o The “Manuals and Forms” tab includes the following sections: “Manuals and Forms” is a section includes a downloadable version of the Unit Operations and Policies handbook and other misc. forms. In the “Employment Forms” section, you will find the HR forms that you will need when hiring employees including our Handbook of Basic Policies and Procedures that all employees will need to read prior to work. “Garlic U training” contains many documents that you will be using during your training program. “Marketing Forms” include some handy forms for marketing your store “Management Tools” include a gold mine of checklists; reports and action plans that will help you operate your store properly. o The “Forums” tab is a public discussion grouped into different topics. You will be able to read other’s comments as well as add some yourself if you wish. The topics will range from training to marketing and are a great way to share ideas with fellow franchisees. o The “Help Desk Copyright 2015 GJ Franchise Systems, Inc. 124 CONFIDENTIAL – DO NOT DISSEMINATE Garlic Jim’s Famous Gourmet Pizza-Owner’s Manual v. 1.8.08 This function allows for customer contact through email to be monitored and forwarded to the appropriate franchisee. When one of your customers contacts Garlic Jim’s through the website and emails comments, concerns, praise or a problem it is to you to take action and respond directly. You would receive an email notification that there is a customer query and you would then log on to the website and click on ‘help desk’. You are able to post a reply through the web-based form. o “My account” contains your individual account information. Real Estate Web tool o This tool allows you to communicate with the Garlic Jim’s development team and the real estate broker and monitor the real estate process. Unit Operations & Policy Manual o This 100+ page manual will detail all of the operation activities and policies that you will use every day to run your Garlic Jim’s pizza store. You will learn about product, customer service, image, the commissary, security procedures, food safety/sanitation, human resources, cash control, daily operation procedures, management tools and marketing. By learning this manual you will have the skills and confidence that will ensure that you are running the best store that you can. If you have reviewed this material before your upcoming training session, you will be able to ask educated questions and therefore get the most out of training that you can. This Owner’s Manual o Also, read this manual cover to cover. Once again, learning the system will be the key to your success. Study & learn the menu, portion charts o Memorize the menu. You should also ask every employee to do this before almost anything else. Also, study your portion charts, which are in section 2 of the Unit Operations & Policies. Know and internalize Garlic Jim’s mission statement and philosophy. Participate in local co-op meetings, general franchisee meetings, company expos or franchise organizations – get involved early. Suggested reading: The E-Myth Guerilla Marketing Gung Ho! The Present Michael Gerber Jay Conrad Levinson Ken Blanchard Spencer Johnson Copyright 2015 GJ Franchise Systems, Inc. 125 CONFIDENTIAL – DO NOT DISSEMINATE
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