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FAQ MunchBakery Franchise frequently asked questions

Q. What is MUNCH BAKERY Franchise?

A. Munch Bakery is a sweet oriented Bakery. Munch Bakery is specialized and known for the variety of cupcake flavors and customized occasion
cakes and cupcakes. The variety of items include cheesecakes, tarts, cookies, brownies, English cakes, loafs, mini tarts, mini cheesecakes, round
cakes and our exclusive candy line. Munch Bakery is unique in their products, store interior and branding strategy.
Munch Bakery’s goal is to be the leading bakery in the region. Moreover, they plan to increase their variety of cupcake flavors as well as growing
their existing product line. They thrive to keep on improving and staying ahead of the market.
Currently there are 12 operating Munch Bakery outlets, 8 in Jeddah, 1 in Makkah, 1 in Medinah, 2 in Riyadh and Munch factory outlet
Munch Bakery serves multicultural middle to high-end income customers. The size of a typical Munch Bakery is between 16 SQM 400 SQM.




Q. What is the term of the MUNCH BAKERY Franchise Agreement?

A.The initial term of the Franchise Agreement is 5 years from the date the Franchise Agreement is signed. The franchise is renewable for 4 additional terms of 5 years each, for a total of 25 years providing you have complied with the provisions of the Franchise Agreement.




Q. Will I have an Exclusive Territory?

A.Munch Bakery grants an exclusive territory for a minimum of 5 outlets and agreed upon on a case-by-case basis.




Q. How much does the Franchise Fee Cost?

A. The initial franchise fees are:
Franchise Fees: one of the following options:
· Area Development Fees: 20,000 USD per store, and 13,350 USD per kiosk required minimum of five stores.
· Individual Franchise Level 2-4 (Express, Neighbourhood, Independent Shop with Commissary) USD 24,000 per store.
· Individual Franchise Level 1 (Kiosk): USD 13,350 per kiosk
For Area Development franchise fees payment schedule is below:

 

 

Event

 

Description

 

Sample Franchise Fee for 5 Stores Level 2-4

Upon signing

Includes Franchise Fee for the 1st unit & 50% of next 4 units

USD 60,000

Upon opening 2nd unit

50% balance of the Franchise Fees

USD 10,000

Upon opening 3rd unit

50% balance of the Franchise Fees

USD 10,000

Upon opening 4th unit

50% balance of the Franchise Fees

USD 10,000

Upon opening 5th unit

0% balance of the Franchise Fees

USD 10,000

TOTAL

 

 USD 100,000




Q.How much does the Franchise Cost?

A. The initial investment for an individual unit ranges from USD 80,000 to USD 1,350,000 this includes Franchise Fees, Training, 6 Months
Rental, Working Capital and Others.




Q. How much is the Fee for Continuing Support Services “Royalty Fee”?

A.The continuing services, or “royalty fee,” is 6% of your gross sales and is paid monthly. This fee entitles you to use Munch Bakery service mark, use of distinctive system, marketing assistance, ongoing business development and counseling, and other benefits that come with being a Munch Bakery franchisee.




Q.How much Training is provided in MUNCH BAKERY Franchise System?

A.Initial assistance provided by Munch Bakery will include the following franchisee training programs:
Phase I -- Training provided at a location designated by franchisor:Munch Bakery’s management will provide franchisee/One
cake decorator with approximately 30 to 45 days of initial training and will provide two (2) designated attendees with approximately
14 days of initial training at headquarters or at a location designated by the Munch Bakery’s management, beginning approximately
6 to 9 weeks before the franchisee is scheduled to open for business. Phase I Instruction will pertain to administrative, operational,
and sales/marketing matters; it will also include a liberal amount of on-the-job training.
Phase II -- Training provided at the franchisee's location: - On-site training typically takes place when the franchisee commences
operations. Experienced trainers from Munch Bakery will provide on-site training for a period of 7 to 14 days to assist the franchisee in
the commencement of operations.




Q.What is my next Step?

A.Simply complete the Franchise Application form at franchise.munchbakery.com. Upon receiving the form we will contact you.




Q.What about Advertising?

A.Munch Bakery name and reputation is an important part of our business. You will spend at least 2% of your gross sales per month
on local advertising. In addition, if we should establish fees for a Marketing Fund, you will be expected to make Marketing Fund
contributions of up to 1% of your monthly gross sales.




Q.What are the Support Programs provided by MUNCH BAKERY Franchise?

A. In addition to field support, members of Munch Bakery’s organization should provide the services listed below:
MunchBakery Franchise frequently asked questions
Operational Support –Munch Bakery Management will provide ongoing training and support in many areas critical to the success of the
franchisee's business, including unit operations and maintenance, customer-service techniques, product ordering, suggested pricing
guidelines, and administrative procedures.
Site Selection -- Prior to approving a site for Munch Bakery outlet, the Management will provide franchisees with clear guidelines for a
suitable location. Munch Bakery requires franchisees to follow these instructions to ensure that an appropriate site is located.
Marketing Support –Munch Bakery coordinates development of advertising materials and strategies for the benefit of all members of the
franchise network. It also provides franchisees with consumer marketing plans and materials for use at the local or regional level, and retains
the right to approve all local advertising materials that the franchisee chooses to develop.
Purchasing –Munch Bakery Management or its affiliate will negotiate quantity discounts on behalf of all of its members, passing some or all
of these savings on to the franchisees.
Accounting/Audit/Legal -- Reporting directly to administration, this department is responsible for the financial and legal oversight of
franchisees.
Internal Support -- The functional areas of training, purchasing, franchisee communications, and research and development are typically
included in such a department.
Ongoing Research and Development –Munch Bakery continues to research methods and techniques for franchise operations
(including purchasing and promotional schemes) that enhance unit-level profitability.
Overall Program Oversight –Munch Bakery Management will provide the overall coordination and planning for the entire franchise system.
Q. Can I open kiosk anywhere?
A. Kiosk models only available where there is existing munch shops, or for those who take area development.