POTATO CORNER | Philippine Franchise

POTATO CORNER FRANCHISE

Potato Corner offers various franchise packages in the Philippines, with costs ranging from around PHP 300,000 to PHP 550,000. These packages typically include the franchise fee, cart (or indoor/outdoor setup), wares, equipment, and initial supplies. The franchise fee is usually for a 5-year term, with a renewal fee of 50% of the current franchise fee.

Here's a more detailed breakdown:

1. Franchise Fees and Packages:

• Mega Package:PHP 450,000 (includes franchise fee, cart, wares, equipment, and initial supplies)
• Giga Indoor Package:PHP 475,000 (includes franchise fee, cart, wares, equipment, and initial supplies)
• Giga Outdoor Package:PHP 550,000 (includes franchise fee, cart, wares, equipment, and initial supplies)
• Tera Package:PHP 325,000 (includes franchise fee, wares, equipment, and initial supplies)

2. Additional Costs:

Initial Supplies: Can be a significant portion of the initial investment.  Renovation/Construction (if applicable): May be required for indoor or larger setups.  Advance Rent and Deposits: Depending on the lease terms.

3. Renewal:

Renewal fee is 50% of the current franchise fee (currently PHP 150,000, making the renewal fee PHP 75,000).

4. Term of Franchise Agreement:

Typically 3 or 5 years.

5. Return on Investment:

Potato Corner states that franchise owners typically experience a return on investment within 12 to 18 months.

6. Application Process:

7. Initial interview.

8. Site inspection and approval (2-3 weeks).

9. Grant meeting (awarding of site).

10. Contract signing and payment.

11. Store construction or preparation of store opening.

12. Store opening.

A franchise fee is a one-time, upfront payment made by a franchisee to a franchisor for the right to operate a franchise under the franchisor's brand and business model. This fee grants the franchisee the license to use the franchisor's trademarks, business systems, and potentially, their products or services.

Here's a more detailed breakdown:

What it covers:

Initial Investment: The franchise fee represents the franchisee's initial investment in acquiring the right to operate a franchise.  Training and Support: It often includes costs associated with training and support provided by the franchisor to help the franchisee set up and operate their business, including seminars and business strategy training.  Marketing and Advertising: The fee can contribute to the franchisor's marketing efforts to promote the brand and support the franchisee's local advertising.  Branding and Licensing: The fee covers the cost of using the franchisor's brand name, trademarks, and business systems.  Opening Costs: It can also cover some of the initial costs associated with opening the franchise location.

Key Differences from Royalties:

One-time vs. Recurring: The franchise fee is a one-time payment, while royalties are recurring payments, often based on a percentage of the franchisee's sales or profits.  Purpose: The franchise fee is primarily used to cover the franchisor's initial costs associated with setting up the franchise system and supporting the franchisee's launch, while royalties are typically used to fund ongoing support, marketing, and brand development.

In essence, the franchise fee is the "entry fee" for a franchisee to join the franchisor's network and operate under their established brand and business model.

To obtain a Potato Corner franchise, you need to follow a few steps: first, express interest by submitting a Letter of Intent and required documents. Then, complete the application form, including a market study and site analysis, and submit it along with the necessary fees and other documentation. Finally, you'll need to secure a suitable location and meet other requirements outlined by Potato Corner.

Here's a more detailed breakdown:

1. Initial Interest & Application:

Letter of Intent: State your interest in the franchise and provide some background information.  Required Documents: This includes valid IDs, an application form, and a market study/site analysis.  Submission: Email the completed application and documents to the Franchise Development Department at franchises@shakeys.com.

2. Application Form and Financial Commitment:

Application Form: Complete the detailed application form, including franchisee information, proposed location details, and any required documents.  Financial Proposal: Provide a draft lease offer and any other relevant financial information.  Franchise Fee: The franchise fee is typically around P150,000, with a renewal fee of P75,000.  Capital Investment: Expect to invest around P300,000 to P500,000 for the initial setup.

3. Location and Site Selection:

Suitable Location: You are responsible for finding a suitable location.  Minimum Space: Potato Corner requires a space of at least 6 square meters with a minimum frontage of 2 meters.  Market Study and Site Analysis: Provide a detailed analysis of the proposed location.

4. Legal and Operational Requirements:

Franchise Contract: Once approved, you'll sign a franchise contract.  Business Papers: You'll need to obtain necessary business papers, such as DTI/SEC registration and permits.  Operations Manual: Understand and follow the operations manual provided by Potato Corner.