FRANCHISES
QUESTIONS
- What is the initial franchise fee?
- What are the royalty fees?
- How much investment is required?
- How much personal liquidity do I need?
- What are the financing opportunities?
- How profitable is a Commensal&cie franchise?
- What is the term of the franchise contract?
- Can I buy a Commensal&cie franchise as an investor without being a manager?
- How are franchisees selected?
- What qualities are you looking for in franchisee candidates?
- Must I participate in the daily operations of my restaurant?
- Must all the products be purchased from Commensal&cie?
- How big is a typical Commensal&cie restaurant?
- Who chooses the location of a new Commensal&cie restaurant?
- How long does it take to build a new Commensal&cie restaurant after approval?
- Are multi-unit franchises available?
- Who should I contact to get started?
ANSWERS
What is the initial franchise fee?
Commensal&cie demands $25,000 as initial franchise fee.
The initial franchise fee includes:
- The exclusive use of a Commensal&cie restaurant in a defined territory
- The right to use the brand and Commensal&cie operating system for the duration
of the initial contract - The cost of training the franchisee
Note: The head office assumes the training team’s salaries. All other expenses related to training, including expenses (accommodation, transport, etc.) are the responsibility of the franchisee.
- Royalties are 5% of sales.
- Advertising fees are 4% of sales.
How much investment is required?
A Commensal&cie requires an investment of $500,000 to $700,000, depending on the work required
to develop the restaurant.
How much personal liquidity do I need?
The franchisee must provide a personal contribution of 40% of the investment.
What are the financing opportunities?
Commensal&cie has an agreement with the Royal Bank of Canada, which facilitates access to financing by means of quality criteria.
How profitable is a Commensal&cie franchise?
It is difficult to determine the profitability of a Commensal&cie franchise because many factors may influence the results. We will work to establish a break-even point with you and we will validate your financial projections to keep it realistic.
What is the term of the franchise contract?
The contract is for a period of 10 years with 2 options of 5 years each.
Can I buy a Commensal&cie franchise as an investor without being a manager?
No. However, we accept multiple shareholders as long as a team member is dedicated full time to the operation of the restaurant and has a minimum 15% share.
We have implemented a comprehensive franchise selection and allocation process requiring several steps. It’s how we can guarantee making the right choice for the long term.
What qualities are you looking for in franchisee candidates?
First, it is not necessary to be a restaurateur. On the contrary, we are looking for individuals who are active leaders, skilled in the art of communication, and with management experience. We value the creation of a relationship based on respect and common values to achieve common goals.
Must I participate in the daily operations of my restaurant?
The designated operator is responsible for ensuring the smooth operation of the restaurant and business development. To that end, we ask that our franchisees get involved in a social cause specific to their community and regularly promote the Commensal&cie restaurant and brand.
Must all the products be purchased from Commensal&cie?
Yes. Commensal&cie and authorized distributors deliver the products needed by the restaurants to produce sales. We want our franchisees engaged in the operation of their restaurant and business development.
How big is a typical Commensal&cie restaurant?
Our restaurants are approximately 3,000 square feet with a capacity of about 100 seats.
Who chooses the location of a new Commensal&cie restaurant?
Commensal chooses the site.
How long does it take to build a new Commensal&cie restaurant after approval?
14 to 16 weeks.
Are multi-unit franchises available?
Yes, however, the criteria to operate a second site are very clear:
- Your restaurants must be profitable
- Financing must meet the standards we have established
- You must be a successful franchisee
- You must demonstrate the ability to run more than one restaurant
Who should I contact to get started?
Christian Champagne, Executive Vice President - Restaurants
c_champagne@convivia.ca
