How much is the total franchise package? How much will I pay in royalties?
The initial amount of investment you need to have is Php350,000. This will include the following: change to Your small franchise investment will include the following:
1. Use of PAPAY Brand
2. Papay well structured system
3. Secret ingredients and techniques
4. Training of Baker and Store Staff
7. Initial Inventory
8. Store opening assistance
9. Marketing Support
10. Staff Support
The amount of royalties that needs to be paid to Papay Bakeshop, Inc. is 3% of gross sales per month.
Will you provide staff for me?
No. You need to get your own baker/store staff and send them to our training centers.
I have a good location in mind but there is already existing bakery in the area offering assorted breads, will you advise me to pursue?
YES. Papay is not a direct competitor of traditional bakeries. The reason being, traditional bakeries offer Hot Pandesal as well as assorted breads while Papay Pandesal offer Pandesal only.
Common problem of this business is irresponsible baker, how do you address this?
I agree. Business stops if baker is irresponsible. Imagine, closing down your business because your baker did not report for work. This is the nice thing about Papay, we have this thing called â€œStaffing Support.â€ Just in case a franchisee has a problem with his baker, we can send immediately our own baker to act as temporary back up baker until you find a replacement. If you are a Papayâ€™s franchisee, you get to enjoy this Staffing Support that is included in the package.
How different is Papayâ€™s Pandesal from the other Pandesal
The first thing you will notice about Papayâ€™s Pandesal is its look. Papayâ€™s Pandesal is evenly shaped like an elongated tube. It is covered with a golden brown baked crumbs on top of a white bread. When you split it in half, you will smell its unique scent of freshness. You will also notice that it is stained with several small green leaves well distributed on the entire body of the bread. This green leaves are actually Malunggay and Spinach. Taking a slow bite on the Pandesal, you will taste the crunchiness outside and softness inside. The sumptuous look as well as the delectable taste will surely give every Filipinos a huge smile in their face.
Is it possible to add store without commissary?
YES. This is another unique feature of our franchise package. You as franchisee is not forced to always get a package with commissary. If you need to add another store and it is near your commissary, you can just get a Branch Store Package. The price of this is Php 250k only. This package is the same as the regular package without the commissary. In this set up, franchisee can easily expand because it is much cheaper at the same time lowering the cost of his commissary applying the economies of scale principle.
Your franchise package is cheaper from your staunch competitor but you are charging royalty fees and they are not. What can you say about this?
Royalty Fees are common in any franchising business. This is actually not profits for the franchisor but rather a TOOL to monitor franchiseeâ€™s operation. Royalty fees, a fraction of your entire revenues, actually measures if you are still doing good or bad in your franchise store. If the royalty falls down, franchisor usually gets alerted and will offer support for their franchisee. In this regards, franchise business without charging royalty fees is questionable. Study shows, that this is not for LONG TERM business. No royalty fee means franchisor does not care about your operation at all.
What are the requirements and how long will it take to get approved as a franchisee? What is the procedure?
What you need to prepare:
1. Franchise Fee, P350,000.00
2. Company name (SEC or DTI)
3. Staff for training, Baker and Store Person
4. For new entrepreneur, application of Business Permit, BIR Registration and other compliance documents
Note: Initial qualification involves a series of background checks and interviews of the franchisee. After which, the company can check if the proposed site/location is viable or not.
We are looking for serious and established companies/individuals who can carry on the Franchise Agreement.
The following is a step-by-step process on how to become a Papay Franchisee.
1. Submit a signed LOI with the following requirements via email
2. Copy of your DTI or SEC Registration, if you are about to obtain one, please submit when ready
3. Photocopy of Government issued ID
4. Location map and photo of proposed site, please give at least 3 options
5. Completed Applicant Profile Form
6. Upon receipt of the #1, PBC will send a draft copy of our Franchise Application Agreement, please wait at most 30 business days to process your application, from the time we sent an acknowledgement receipt of your Franchise Application. We will contact you within 30 days if your application has been approved, rejected or requires additional documentation.
7. Signing of Franchise Agreement and Payment of Franchisee Investment Package (FIP) fee.
i. Week 1:
- All related manuals will be delivered
- Franchisee will send the trainees to the nearest PBC Headquarters
- Site Inspection
ii. Week 2-3:
- Store Renovation (c/o Franchisee)
- Staff Training (c/o Franchisor)
iii. Week 4:
- Signage Installation and other finishing procedures
iv. Week 5:
- Grand Opening
How long will it take to build my store?
If your chosen store is ready, Papay Team can set it up in 3 days
Why would I choose Papay over other bakery franchise business.
2 major reasons why you should choose Papay over other bakery franchise is our business model and our proven business system. Our model is very unique because we focused mainly on the most profitable and most sellable bread in a bakery which is Pandesal. We made it hot and freshly baked as well that is available 24 hours a day. Other bakery franchise offer assorted breads which has very high COGS. They sell Pandesal every morning and afternoon only limiting Filipinos to buy the most sought after bread in the Philippines. We, at Papay, understood the cravings of many Filipinos for pandesal anytime of the day. This is the reason, for our business model. On the other hand, our proven business system will make a franchisee monitors their own Papay operations smoothly. Papay Pandesal is so yummy that customers will keep on asking for more. It has a unique elongated shaped that is crunchy on the outside and soft on the inside. Simple system yet very profitable business. You will be amazed once you become part of Papayâ€™s family.
Can I use equipment that I already own, or used equipment?
Yes, but the franchise package amount would not change. It is therefore advisable to get all free equipment of the franchise package in addition to your existing equipment.
Will you provide training for my baker in making the pandesal?
Yes, we will train your baker in our training centre on how to make Papayâ€™s Pandesal. It is advisable you as owner attend the training because we will conduct training only once. We need to train as well your store staff on how to cook Papayâ€™s Pandesal, when to order for replenishment, proper oven temperature, etc.
What is the ROI of my investment?
The average ROI is 1 year depending on the location.
How much will food and supplies cost? What suppliers should I use?
You are not limited in getting supplies from our suppliers. We will give you a ideal cost for each supplies, brand, and specifications for your reference. However, you should strictly follow the brand and specifications to preserve and standardise the quality of Papayâ€™s Pandesal.
Can I use my own recipes and menu ideas?
Franchisees must sell only approved recipe of papays to maintain the quality of taste of the pandesal. If you intend to sell other products in your store, you must seek permission from papay first.
What type of marketing support will I receive?
Papayâ€™s Brand is registered trademark under Intellectual Property Office of the Philippines. Through the years, we have developed, established and made well known Papay brand in Pandesal making industry. This can help you in your marketing since you are carrying our brand. We also have several affiliate companies who is continually doing marketing activities for Papay. We are always seen in different trade shows and business exhibits. Papay brand is very strong as well on the internet specially on social media. As franchisee, we will carry your location in all these marketing activities.
Do you have a quality assurance program?
YES. We value quality so much that we have this policy that if a customer is not satisfied with the bread, they can refund or ask for a replacement, without questions asked. We have secret buyer going around all our branches and franchise store to check quality of the pandesal. If the secret buy was not at par with our expected quality, we call the attention of the franchisee. We also have a SMS Hotline for customerâ€™s feedbacks and complaints.
Will I be required to use specific accounting service software at my branch?
No, but you as franchisee is required to use our reporting system for monitoring of monthly sales. This is very vital so that we will be alerted if your sales is dropping. This is also your monitoring tool to determine if there is fraud happening within your store.