Timing to Open a New Store
The process starts once a definite interest in the franchise is confirmed and a Franchise Compatibility Profile is completed and handed in to us for our review.
The procedure for acquiring a franchise is based on:
The franchise canidate would then ensure that financing can be secured. Once that is complete then Cody Party Centre determines an appropriate location and assists with lease negociations. After the location has been finalized and a lease agreement executed, an estimate of the overall costs for construction, renovation and equipment is provided. Following this, monies sufficient to cover the franchise fee and agreed upon construction and equipment costs must be deposited with Cody Party Centre. Subsequently, a standard Franchise Agreement is executed. A designated contractor, coordinates and supervises all aspects of construction from preparation of drawings to the completion of construction, as well as the ordering of all equipment.
While construction is in progress, it is the responsibility of the franchisee to hire staff to work in the store. We assist in providing management training and staff training to familiarize the franchisee with the store operations and items such as cost control, inventory control, purchasing, administration, management, product knowledge and sales training. This includes determining an appropriate initial product inventory prior to store opening.
Successful applicants are expected to complete an extensive two-week training program at one of our existing corporate stores. In conjunction with the training, Cody Party Centre will provide experienced staff for the first week to ensure the store is running smoothly, and to provide assistance in preparing the initial promotional advertising for the Grand Opening.
Operation of all our stores is monitored and appropriate back-up assistance is provided to continually improve service and performance.
The typical timeline for opening a new store is 4 - 6 months. This includes the time of the initial application. The following will help give you an idea on how long each steps takes;
Franchise Applications - 2 Weeks The Franchise application is an important step in the process for us to have a look at the profile of the applicant both on a personal and financial resources level.
Financing - 2 Weeks Obtaining financing for a franchise investment can take some time as the bank may require turnaround time to approve a presentation and financing request.
Execute Franchise Agreement - 2 Weeks The time to execute the franchise agreement is actually subject to the provincial or state franchise laws. The time you have from the presentation of the Disclosure Document and Franchise Agreement to actually signing it can take two weeks or more.
Site Selection - 2 Months It can take some time to find the right location for a Cody Party Store. We help you throught the entire process.
Execute Offer to Lease - 3 Weeks Negotiating the terms of the lease successfully with a landlord will lead to a document called Offer to Lease, which is a step away from the actual lease. It's important to know that the Offer to Lease is a legal and binding document in Canada.
Business Set-up - 1.5 Weeks This is part where you set up your own business, which may include incorporating or registering your business; obtaining tax requirements, opening a business bank account; and putting together your support team including an accountant, lawyer and financial advisor.
Construction - 2 Months Constucting the new Cody Store can take some time. You can arange to have the work done yourself, or we can do everything for you. Typically, we will have some initial training during the constuction phase.
Product Ordering - 2 Months Setting up your trade accounts as soon as possible is important. We will put all of your initial orders together which does take some time. Each market is different and does require different product.
Training - 2 Weeks Training is ongoing but we will have you spend a week with us and we will spend a week at your new store.
Kanata Store In Progress
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