FAQs
Q. How long is a Franchise Agreement?
A. The agreement is for a 5 year period which can be renewed, by mutual agreement, for a further 5 years.
Q. Do I get access to an 'exclusive' territory?
A. Yes, we will agree with you a territory for your Phat Van to operate within.
Q. Can I run my Phat Pasty business part time?
A. No, this is a full time commitment. The weekly operation runs from Monday - Friday, with a round operating between 9am and 1.30pm. The opportunity to operate the round at the weekend and to attend events and cater for private parties is optional.
Q. Can I add further Phat Vans to my business?
A. Yes, all franchisees are required to operate for 6 months from an initial Phat Van operation. After 6 months, those franchisees wishing to develop further Phat Vans may apply to add additional vans / territories. Providing that standards are to the required level and that additional territories are available, additional Phat Vans may be added.
Q. Is there a fee payable for each additional Phat Van?
A. Yes, each additional Phat Van will be made available at 50% of the then current Franchise Fee. The weekly Management Services Fee and Marketing Levy will apply for each van operated.
Q. How long will it take me to get my business set up?
A. Because we are not constrained by having to find property and all of the issues in fitting out a retail premises, this is an extremely fast process. You will need a Franchise Lawyer to review the Franchise Agreement, carry out research on your area, spend a week training and the Phat Van will need to be built for your order. In total we would expect the whole process to be approximately 8 weeks from signing a franchise agreement.
Q. Can I operate from a 'hub' for multiple van operations?
A. Yes, we would expect franchisees wishing to operate multiple vans to work from a small lock-up industrial unit. Considerations such as rent, rates, van security, storage requirements and employment of staff will also need to be taken into account.
Q. Can I borrow money to set up my franchise?
A. This is always dependant upon personal circumstances. Many major banks have specialist Franchise Departments who are used to dealing with franchisees and who will discuss specific needs. Remember, if you are borrowing to fund your Phat Pasty franchise this will require a repayment to the bank of capital and interest and therefore your annual profits and cashflow will be reduced by this amount. It is recommended to seek advice from an accountant.
Q. Can I take the Phat Van to events outside of my territory?
A. Yes, the principle is that the franchisee nearest to the event would always receive 'first option' to attend.
Q. Can I sell the business?
A. Yes, this is ultimately your business and should you wish to sell it in the future that is for you to determine. The franchisor will be required to give you prior permission and must approve the new purchasor. The purchasor will then sign a new Franchise Agreement and pay the appropriate franchise fee.
Q. What help and support do I receive in setting up my business?
A. The Phat Pasty Co franchise support team will be there at every step of the way to provide guidance and support.
You will be required to do much of the legwork and to carry out detailed research in your specific territory, however, the franchisor will provide you with the necessary training and tools to ensure that you are able to set up the business. You will spend a week working alongside an existing business, learning the ropes. At the launch, the franchisor will be on hand for the first week of operation to provide additional training and support.
The marketing kit will provide you with menus / leaflets that will be used to help promote the business and to build your round and customers.
Q. Do I have to stick to the Phat Pasty Co menu range and products?
A. Yes, this is a franchise with tried and tested products / recipes and snack items. There are available 'specials' that can be rotated within the range and new recipes will be introduced regularly for sandwiches, baguettes, salads and soups. The basic principles of providing high quality items will be maintained and is key to the success of the franchise.Some regional variations may be allowed and new products will be introduced periodically.
Q. What items are purchased from the franchisor?
A. The Phat Pasty Co will provide an 'Approved Products' and 'Approved Supplier' list to franchisees. The franchisor will deliver the traditional Cornish pasties, some specific listed food items, packaging and some sundry items to franchisees in manageable quantities. This helps the franchisee by not having to order items in bulk and ensures that these high quality products can be available for them to sell.
Q. Do I pay a percentage of my sales to the franchisor?
A. No, we do not believe in disincentivising franchisees from creating additional sales and growing their business. We operate a Management Services Fee which is based upon a fixed weekly fee - this is simply paid each week by direct debit. If the franchisee chooses to operate at weekends and evenings etc this is all available at no additional cost.
Q. What does the Management Services Fee cover?
A. This covers the back up and support services provided by the franchisor to franchisees.
