The following are questions frequently asked by prospective Daphne’s franchisees. Responses to most of these questions may be found in the Uniform Franchise Offering Circular (UFOC). We encourage you to read the UFOC in its entirety and to consult with an advisor as you consider franchising. You may also want to contact existing Daphne’s franchisees regarding their franchise experience.

1. How much will I pay in royalties? What fees will I pay when I become a franchisee?
The following chart list the initial franchise fees, weekly royalty, and weekly advertising fees. These amounts do not include the initial investment required to construct the restaurant building, grand opening expenses, opening inventory, etc. Please refer to the Daphne’s UFCO, Item 7, for more in depth information on the total initial investment.

Initial Fees
Royalty Rate
Advertising Fee
$40,000
5% of sales
3% of sales paid to Marketing fund
NOTE: other required fees are outlined in the Daphne’s UFOCs.

2.How long will it take to get approved as a franchisee?
Initial qualification involves a series of background checks and interviews and generally takes 3-5 weeks. After that, site evaluation can take 1-3 months but is dependent on when you submit a site for our review.

3.How long will it take to build my restaurant?
Generally, once your site has been evaluated through the internal site review and evaluation process and you have signed your option agreement, you have three (3) months to begin construction and nine (9) months to open for business.

4.Who will build my restaurant?
As an independent business person, you are responsible for the construction of your restaurant however there are many general contractors that work across America with significant experience in building restaurants.

5.Will you provide plans and an equipment list? Can I use equipment that I already own, or used equipment?
Daphne’s Real Estate & Construction Department will provide you with standard building plans that you and your contractor (if applicable) can use. Additionally we work with you on any changes to the site layout because of restrictions, etc. In most cases you will not be allowed to use equipment or furnishing you already own. You will work with a local Daphne’s approved vendor on standards and specifications regarding furnishings, equipment, and approved suppliers.

6.What will my sales be?
Daphne’s does not make a sales claim for new restaurants, other than what is included under item 19 of our UFOC. Prospective franchisees are encouraged to conduct their own independent investigation to determine potential sales levels prior to signing any Franchise Agreement. Existing franchisees are a resource you can use for more information. A list of domestic franchise units, the franchisee’s name and phone number are listed in the UFOC.

7.How much money will I make? What will be my profit percentage? What are the profit margins of other franchisees? What kind of return on my investment may I expect?
Daphne’s does not make any earnings claim for new restaurants, other than what is included under item 19 in our UFOC. Prospective franchisees are encouraged to conduct their own independent investigation to determine whether they believe a restaurant may be profitable and consult with their own advisors prior to signing any Franchise Agreement. Existing franchisees are a resource you can use for more information. A list of domestic franchise units, the franchisee’s name and phone number are listed in the UFOC.

8.How much will food and supplies cost? What suppliers should I use?
A list of approved suppliers will be provided to you and you are required to purchase your supplies from those companies. Approved Daphne's suppliers work on behalf of the entire system to secure and deliver all the food and supplies you will need. The most favorable pricing for necessary items is secured by our Food & Beverage Department based on our total system buying power.

9.Can I use my own recipes and menu ideas?
Franchisees must sell only approved products in their restaurants.

10.What type of marketing materials and support will I receive?
Daphne’s is continually working to develop new products and to improve existing products. Franchisees receive a calendar of upcoming events from our Marketing Department as well as order forms for POP and other advertising materials for specific promotions.

11.What kind of training does Daphne’s offer?
Before you open your restaurant three key members of the Franchisee’s organization will be required to attend and complete the Daphne’s training program. Those key members are the Franchisee, the Operating Partner, and the General Manager. Training requires four (4) weeks and is conducted in a Daphne’s certified training store. The franchisee is responsible for all costs incurred including, travel and lodging of the management team.

12.Do you have quality assurance programs? Who enforces quality?
Daphne’s has a three phase quality assurance program. The first is a mystery shopper service program where restaurants receive feedback on their store experience. Secondly, a third party food safety inspection will be conducted to provide feedback on food handling practices. Lastly Daphne’s conducts periodic standards review in each franchise store and gives feedback to the operators regarding execution excellence. Franchisees are required to meet certain operating standards as part of their franchise agreement.

13.Will I be required to use specific accounting service software at my restaurant?
Daphne’s UFOC describes the type of electronic cash register system and software requirements to be used in the restaurant. You must prepare and keep detailed records regarding all sales and other financial aspects of your restaurant operations. You may also be required to submit reports of product mix, hourly and day-part sales and other reports as may be determined by Daphne’s

Note:
This is not an offer for a franchise. An offer for a franchise is made only by the means of the franchisor’s Uniform Franchise Offering Circular (UFOC).


Daphne's Serves 100% Hormone Free Chicken! We Are 100% Trans Fat Free!
All menu items and prices are subject to change.





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