Frequently Asked Questions

FAQs: December 18, 2019

Here’s a run through of all the Frequently Asked Questions we get about being an Oporto franchisee. We hope you find them helpful!

The Business

What is a franchise?

A Franchise is a trademarked business formula owned by a company (Franchisor) and is available to individuals to purchase the rights to operate a small business (Franchisee) for a set period of time.

Franchisees are in effect, small business operators located in metro, suburban, regional and rural areas.

When you buy the rights to open a Franchise, you’re buying the rights to use a proven business system, with proven prices, products, and marketing techniques. You’re also buying the rights to a brand: You get full access to the company’s trademarked materials including logos, slogans, and signage—essentially anything that has to do with the brand.

What is a franchisee?

The Franchisor is the provider of the Franchise System and the Franchisee is the purchaser of the franchise business.

A Franchisee is a person who want to own their own business however would prefer to work within a tried and tested framework.  Rather than and are prepared to pay a Franchisee fee to be allowed to operate using someone else’s business system.

What is the length of my franchise agreement?

Generally 10 years with an option of a further 10 years for freestanding stores subject to the conditions of the Franchise Agreement. The length of a Franchise Agreement may be shorter in circumstances such as shopping centre food courts if the terms of occupancy are less than 10 years.

I want to invest in a Red Rooster restaurant, but I don’t want to work in the store. Is this an option?

Experience tells us that Red Rooster stores perform significantly better when their owners actively participate in the day to day running of their store. We therefore require that the owner of the business devotes his/her full time and attention to the business. However, we encourage franchise owners to employ a store manager, so the owners can take breaks and work on growing their businesses.

Can I own more than one Red Rooster restaurant?

Yes you can, provided you have the financial resources and demonstrated core competency and management skills in your first restaurant. There are already a number of multi-site operators with Red Rooster.

 

Finance

What will it cost me to set up a Red Rooster restaurant?

The total cost will vary depending on the size and layout of the store. Typically, stores cost between $370,000 and $900,000 (plus GST) to establish. Smaller stores or stores with existing equipment may cost less and larger stores may cost more. In addition to this you will need to pay the franchise fee of $50,000 (plus GST).

How much money will I make as a Red Rooster franchise owner?

This depends on factors including the store’s location and how the franchise owner operates the business. Red Rooster does not provide franchisees with any sales or profit forecasts in relation to Red Rooster stores. Franchisees should prepare their own financial projections after seeking independent accounting advice.

 

Locations

Do I have to find a site?

We have agents constantly looking for sites, however they cannot cover the entire market. With this in mind we welcome potential franchisees who find their own sites to recommend these for our consideration and approval.

Who builds my store?

For new builds, Red Rooster provides a turnkey operation. We will contract with the builder and manage the project from construction to fit out completion. Construction and fit out usually occur while you’re in training.

 

Experience

I don’t know anything about running a food business. Is this ok?

Yes. Before you open your Red Rooster store, we will provide you with comprehensive training so that you can learn the Red Rooster systems and procedures.

 

Assistance

Who will help me with the opening of my restaurant?

Our Franchise Business Managers actively participate in planning the opening and after-launch promotions. They will be there with you before and during the start of your trading.

 

Want to know more?