Max Frango's

How does Max Frango's categorize its Stores?

  • (A)Type : Regular and Halaal, which are certified by SANHA

    (B)Size: 

    CLASS SIZE MENU
    Diner 130m² Full Menu
    Take Away 100m² Full Menu

What is the cost to setup a Max Frango's?

The investment required for a Max Frango's franchise will vary, depending on the size and condition of the premises available for rental. Your sales representative will be able to give you a cost breakdown based on average store costing but an accurate assessment will only be available once our specialised in house development team has conducted a site inspection.

How do I become a Franchisee?

Kindly complete the online application (coming soon!) or alternatively contact one of our sales representatives on (011) 450-2145.

Currently our franchisee demand exceeds available sites, if you have identified a suitable site this will greatly speed up your application process alternately allow us to assist you in finding a suitable location.

Once we have processed your application you will be required to attend an interview with our franchisee selection committee

How do I know if my site is suitable?

Max Frango's is extremely selective with its site selection and sites will need to be approved by the franchisor. The Franchisor will visit your proposed site and a feasibility study will be conducted.

What are the Criteria to become a franchisee?

Each application will be evaluated individually; however the basic criteria are as follows:

  1. Previous food service experience is beneficial.
  2. Owners are expected to operate the business themselves.
  3. An understanding of how franchising works.
  4. Available capital to setup the business.
  5. A positive attitude and good people skills.
  6. Not afraid of long hours and hard work.
  7. Understands the importance of customers.
  8. Works well under pressure.
  9. Systems and procedures orientated.
  10. An understanding of local markets and people.
  11. Excellent communication skills.

What do I get when I purchase a Max Frango's Franchise?

Once you have been approved as a franchisee, signed the Franchise agreement and have paid the franchise fee, Max Frango's will provide you with the following:

  • Assistance with the conclusion of a lease or rental agreement with the landlord.
  • Complete the design, the development, and the commissioning of the new store.
  • In the event that you require additional funding, Max Frango's is approved by the major financial institutions and will assist you in your application.
  • Before you open your restaurant you are required to attend and complete the Max Frango's training program. Training is 3 weeks and is conducted in a company certified training store/Head office. The Franchisee is responsible for all costs incurred including travel and lodging of the management, staff and training team. After which, there is a 1 week in-store training program once your store has been commissioned.
  • The assistance of our Operations Staff with the opening of your store.
  • The Operations Staff will advise you on the recruitment and selection of staff and provide general assistance and guidance to you in the running of your store.
  • The use of all Max Frango's Operation Manuals which contain recipes, operating procedures, equipment and maintenance guidelines, record keeping systems and general reference materials for guidance in the proper manner of operating a Max Frango's store.
  • The right to use Max Frango's trademarks.

What is the Franchise Fee?

The initial franchise fee/joining fee is a once of payment of R120 000.00 (Excl VAT), this fee is Non Refundable and is used for the design, plans, and drawing up of legal documentation, project management, training, menus and various other items.

What are the monthly payments to the franchisor?

You will be required to make the following payments to the Franchisor on a monthly basis during the term of your franchise agreement:

  • A monthly royalty of 5% on your store’s gross sales (excl VAT) or a minimum payment of R7500.00 (excl VAT) whichever is the greatest.
  • A monthly advertising fee of 3% on your store’s gross sales (excl VAT)

How is the marketing fee spent?

This amount is spent on media advertising, merchandising materials, advertising production, research programs, co-operative advertising, special promotions and public relations efforts. We obtain input from franchisees as to the above expenditures, although we retain ultimate decision making authority. The franchisee is encouraged to place local advertising in addition to their advertising fee contribution, but such local advertising must be approved by the Marketing and Advertising Department prior to any publication, distribution or display.

How much Money do I need before borrowing?

You must have unencumbered capital of at least 40% of the total setup cost in cash, which is to be applied toward the purchase and development of the franchise package.

The balance of the franchise package cost can be financed through various lending programs of any bank or financial institution, subject to the fulfillment of their usual credit requirements.

Does Max Frango's provide a turnkey operation?

Yes, Max Frango's operates a turnkey project. Each store is assigned a project manager who oversees and manages the project from start to handing over keys to the franchisee.

How much profit can I make?

The franchisor does not make any earnings claim for new restaurants. 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.

What is the term of the Max Frango's Franchise Agreement?

The Max Frango's franchise agreement runs for a period of ten (10) years and runs concurrently with the lease agreement. Also, you typically have an option to renew for an additional aggregated period of ten (10) years, subject to your fulfillment of certain renewal conditions as per your franchise agreement and the conclusion of a further term of lease.

There is no additional franchise fee charged for the renewal term.

When am I required to upgrade/refurbish my store?

You will be required to upgrade or repair the interior or exterior of the premises whenever required to do so by the franchisor or when required to comply with statutory requirement and or any requirements of the landlord of the premises.

The upgrading or refurbishing of the premises from time to time is essential for maintaining and/or developing the public image of the franchised business and/or franchised operation.

It is important that franchisees budget for future upgrades. Finance is also obtainable through various lending programs of any bank or financial institution, subject to the fulfillment of their usual credit requirements as well as their assessment of the successful operation of the business.

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.

Certain licensed products are compulsory from specified suppliers as they are required in protecting our brand and trademarks.

Does Max Frango's provide personnel for my Store?

The Franchisor will assist in the initial recruitment and selection of staff for the opening of your store. The franchisee will make the decision on the selection of staff.

Thereafter any staff recruited will be required to be sent for training at a company certified training store/Head office and the franchisee will be responsible for any costs involved.

What personal requirements does operating a Max Frango's Store place upon the Franchisee?

This business is a most demanding one. It requires and responds to personal attention. It is most important that you personally be involved with all facets of the business. You must be able to operate your store in accordance with the Max Frango's standards of service, quality and cleanliness. You must set the example for your employees to follow. A franchisee must provide a substantial amount of time in his operation and must be hands on at all times.

These demands on you personally can be minimized by your ability to attract, motivate and retain capable production and storefront personnel. We provide you with the basic procedures and guidelines to use in recruiting, training, retraining and motivating your personnel. However, we do not operate your business for you. We will train and advise you, but the responsibility for developing a sound personnel program and employee relations is yours.

Do I need a lawyer?

Yes, we strongly recommend that you have the terms of our franchise agreement and other related agreements explained to you by your lawyer.

Do I need to set up a company or Closed corporation?

Yes it is required that you have an entity in which to lodge the franchise agreement. This can either be Company (Pty Ltd) or Closed Corporation (CC). The lease and the franchise agreement must be lodged within the same entity

Who can own shares in the company or corporation?

We want to ensure that the principals who have been interviewed and approved by us as franchisees own the business. We believe this is important. The involvement of any other person in the ownership of the franchise will require special review and careful consideration by Max Frango's. You should raise any corporation or other ownership issues during the initial interview process. Otherwise, we will anticipate that any corporate franchisee will be owned 100% by the individuals with whom Max Frango's has met, interviewed and approved.

What about a partnership?

We do not generally allow sleeping partners or absentee owners to be franchisees. The operation of a Max Frango's store requires direct supervision on the part of the franchisee. Max Frango's therefore insists that an operational partner must purchase a share of not less than 30% to operate the business.

Can I use my own recipes and menu ideas?

Franchisees must sell only approved products in their restaurants. Franchise advisory boards may provide input on potential new items.

What is Max Frango's policy regarding additional Max Frango's Stores?

We are committed to locating the stores in markets where research indicates new stores can be supported. Our marketing plan of concentrating stores in an area is designed to provide for strong brand identification and a strong competitive position.

We attempt to ensure that this placement does not significantly affect the sales and profits of any other Max Frango's in the market. We do accept multiple-unit franchisees that have demonstrated the ability to successfully operate one store and who also will work full time supervising the additional stores they acquire.

Who consults with my store?

Each store is allocated a franchise consultant. You can expect to receive consultation from your franchise consultant on a regular basis and assistance when special problems arise. These trained and experienced people keep franchisees up-to-date on new ideas, improved methods, new products and marketing techniques, and generally act as sources of information to help our franchisees avoid the pitfalls of trial and error.

Does Max Frango's have a quality assurance program?

Max Frango's makes use of a two tier quality assurance program. The first is a customer based mystery shopper program where restaurants receive customer feedback on their store experience.

Secondly, the franchisor conducts periodic quality standard reviews and gives feedback to the operators. Franchisees are required to meet certain operating standards as part of their franchise agreement.

Will I be required to use specific point of sale system at my restaurant?

All restaurants are required to use Micros (www.micros.co.za) point of sale control systems. 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 the Franchisor.