Franchise

A) What do I need to do to qualify for a Lovely Bake Studio Franchise?

• Own Retail location in which Lovely Bake Studio outlet is being considered (google pin). However, if you do not have your own location, you can speak to our franchise sales agent to help you narrow it down.
• Looking at opening the store in next 60-90 days
• Have the minimum Capital required to set up the specific model you want to do. Details regarding which can be discussed with our Franchise Sales Agent. In addition, we need all franchise owners to have a marketing launch spend of 2.5 lacs + operating capital to sustain the business for 3- 6 months
• Extra Storage space of 300 Sq. Ft. for Raw material, Packing material and Finished goods (over above the restaurant space mentioned)

B) How do I go about the process of opening a Lovely Bake Studio Franchise?

• Schedule an appointment with our Sales executive on +91-9915020524, +91-9915006757, +91-95019911131 or go to https://lovelybakestudio.com/franchise/ and book an appointment.

C) What is the ROI on my investment?

• The ROI on any investment depends on multiple factors like Location, Rentals, Expected Revenue, and your passion and skills to develop the business etc. To get a better idea of what it is likely to be for you, please book an appointment with our sales executives on +91 9915006757  or go onto https://lovelybakestudio.com/franchise/ and book an appointment.

A) How much does the Large Retail with Cafe Model cost?

• Franchise Fee of 15 lacs + GST. A Cafe location with a minimum of 40-45 covers can be opened in a space of 1000-1500 sq ft. Total setup cost is in the range of 1.10 crores

B) How much does the Medium Retail Model cost?

• Franchise Fee of 10 lacs + GST. The minimum amount of space needed that incorporates both operations and good storage space is 700-1000 sq ft of area. Total setup cost is in the range of 72 lacs

C) How much does the Small Retail Model cost?

• Franchise Fee of 5 lacs + GST. A location with can be opened in a space of 400-700 sq ft. Total setup cost is in the range of 39 lacs

D) Which Licenses will I need to run the outlet?

• FSSAI, Shop & Establishment, Municipal Trade license. For any further clarification you can contact our Franchise Sales Agent

E) Who will look after Marketing?

• All central level marketing promoting the brand – Social Media, Radio, Newspaper, TV, etc is done by the brand. All location specific marketing like ads on Zomato/Swiggy, Flyers in local neighbourhood, Hoardings around the outlet, etc to be done by the outlet. We can help you with a standard design format and you can add your outlet’s specifications

F) How much Marketing Budget do I need?

• An outlet launch budget of 2 lacs is needed to launch any outlet in the first 3-6 months of its operations. This is a mandatory spend for the franchise owner and the cheque is to be provided at the time of opening of the outlet. The decision on how to spend this money will be made in consultation with the Franchise owner.

G) What is the Initial stock Cost (For each outlet type)?

• At the time of signing up the outlet, we will make a projection on the revenue. Ideally, the stock cost will be 8-10 times of per day sale.

H) What is the Royalty (For each outlet type)?

• We don’t work on Royalty basis.

I) Which franchise models does Lovely Bake Studio do? (FOFO/FOCO) (For each outlet type)

• Franchise owned franchise operated model (FOFO) and franchise owned company operated model (FOCO) only for large retail with dine in format.

J) What is my expected rental going to be?

• Under discussion

K) What about other costs?

• Once we are aligned on the location, set up cost, etc, we will book an appointment with our Franchise Experts. They will make a monthly Profit and Loss Statement with you which will include all monthly expenses and give you a provisional view of profitability at each outlet.

L) Which cities is Lovely Bake Studio looking to expand to?

• Currently our focus is on increasing our density pan Punjab (Ludhiana, Amritsar, Patiala, Bathinda, Batala, Kapurthala, Phagwara, Moga, Pathankot, Hoshiarpur, Gurdaspur,Phillaur).

M) Is Franchise fee refundable?

• It is Non-refundable.

N) What are the payment terms?

• The payment is to be made well in advance.

A) Who will be responsible for Hiring (Brand guideline)?

• While the accountability of the hiring lies with the Franchise (FOFO MODEL), the brand provides complete support in helping source CV’s and take interviews along with the Franchise owner.

B) Skilled 3/ Non- skilled labour?

• Non- skilled labour with relevant experience can be considered

C) No. of employees needed?

• Large retail with Dine-In (12 employees) / Medium retail (5-6 employees) / Small retail (3 employees). This is an estimate based on average revenues. The number of employees will increase if order volumes are higher. Other factors like delivery, valets, guards etc may be applicable based on location.

A) How long is the training process?

• Training for Franchise Owners: Will be conducted by Lovely Bake Studio’s Management team. This training is designed to teach you everything you need to know about running a franchise store profitably. Training for Staff: Will be conducted by operations staff for up to 1-2 weeks prior to the opening and it will be conducted at Lovely Bake Studio’s head office Location. We will provide a New Store Opening Team that will come to your location and hand hold the new staff till they are certified and ready to take on operations themselves

B) Where does the training take place?

• Training for the outlet staff is carried out at the Head Office location in Jalandhar itself.

C) What if a Refresher Training is required?

• Refresher training is carried out based on requirement.

A) Who provides the Packing Material and Finished goods?

• All the packing material and finished goods stock is provided centrally from the brand factory or warehouse to ensure brand quality. Independent procurement of stock is not permitted. We will be open to suggestions for products that are unavailable at the franchise store and are in demand by the customers and provide them accordingly.

B) Who will take care of the RTV?

• The franchise owner is accountable to inform us in advance i.e., when the remaining shelf life of the product is 40% via proper email consisting full details of the stock. After receiving the stock and proper analysis if it matches the said criteria then we will accept RTV in full otherwise the Franchise owner will be held liable for the same and Lovely Bake Studio will not be obligated to pay for it. Nonetheless, we will guide you on how to manage the stock in order to avoid RTV.

C) Who will bear manufacturing defects and in transit product damages?

• Lovely Bake Studio will be bearing all the manufacturing defects and in transit product damages in full. But, after the products are received and placed in the Franchise store any kind of product damage will be borne by the Franchise owner.

(Note- the information regarding any damage, shortage, excess, expiry should be informed within 24 hours to LBS)

D) Who will be responsible for printing packing material?

• The packing material will be strictly given by Lovely Bake Studio only.

A) Who looks after Digital Marketing?

• Our in-house marketing team will assist you with a monthly plan on digital marketing like Zomato/Swiggy carousels and clicks, Facebook ads, instagram ads, Google ads etc.

B) Who looks after Offline Marketing?

• Our in-house marketing team will assist you with a monthly plan on offline marketing like billboards, newspaper flyers etc. The local marketing plan will be put together in consultation with the Franchise Owner.

C) Who is our Target Audience?

• Our target audience ranges between average middle-class and premium/upper class Indians. (People of all ages /To all households and residents. Whether someone is working class, a business executive, a teacher, or a student, there will always be a need for a bakery.) A high density of population with that demographic is most ideally suited for us. High density of families, students and young adults is another indicator of ideal demographics.

A) What is the Franchisee Agreement Term (Clarify as per each outlet type)?

• Franchise Agreement term for a Large retail with Cafe, Medium retail and Small retail model is 5 years.

B) What is the Franchisee Agreement Renewal Fee (Clarify as per each outlet type)?

• To be determined at the time of renewal.

C) What is a Term Sheet?

• The Term Sheet is prepared and signed once the Franchise fee is paid. This is the confirmation of the offer to finalise a franchise license for a particular area. The letter consists of the details of the Franchise, City, Area, Store Model, Fee, Royalty and any special conditions if applicable. The letter states that the outlet should be made operational within 3-6 months of signing.

A) Who will do the project?

• The outlet setup project work will be carried out only by Lovely Bake Studio’s approved vendors. A list of vendors and their costing will be shared with the Franchise.

B) Can I do the project on my own?

• Yes, the project setup can be carried out by your own Vendor, provided the vendor you are recommending has significant experience in building restaurants of global repute

C) How long will the opening of the store take?

• 60-90 days is the timeline to make the store operational once the Franchise agreement has been signed

A) Will Lovely Bake Studio help with finding a location?

• Yes, we can share top locations in a particular city on the basis of data analysis of the market competition + online delivery sales data

B) I have my own shop. Can I use that for the outlet?

• Yes, if the shop matches the requirement of the franchise model of the brand, the self-owned shop can be considered, post due diligence is carried out

C) How much Sale can I expect my outlet to do?

• It will depend upon the demographics of the area, local competition and the potential of the market.

D) How should I choose the ideal model for my location?

• Schedule a call now to speak to our Sales Expert

A) How much operating capital will I need?

• Under discussion

B) Can I suggest my own products?

• Products are fixed as per the brand finalized menu only. If you’d like to keep other products such as grocery items etc as per the demand of the local customer, then Lovely Bake Studio after proper analysis will provide the same.

C) Can we do manual billing?

• No, manual billing is strictly prohibited. You have to use a proper POS model as specified by Lovely Bake Studio.

D) Will I get IT Support?

• Yes, our IT experts will provide all the technical support online and we will provide proper IT training prior to the opening to the concerned person.