1. How much does it cost to purchase a Smitty’sTM?
The cost of purchasing a Smitty’sTM will vary from project to project but generally, complete development, training, and pre-opening costs, will amount to approximately $350,000 to $600,000.
2. How much cash do I need?
Approximately $100,000 to $150,000 of unencumbered cash is required to open a Smitty’sTM franchise.
3. Does Smitty’sTM provide financial assistance?
Smitty’sTM can provide assistance to you in securing financing. We have a relationship with G.E. Capital to provide financing to our Franchise operators. You are also free to arrange financing through one of many leading financial institutions.
4. What is the royalty fee?
A royalty fee of five percent (5%) of gross sales is submitted to Smitty’sTM monthly.
5. Is there an advertising fee?
At this time we do not collect an advertising fee, although we reserve the right to do so. Currently all Smitty’sTM Franchisees pay a proportionate share of all advertising.
6. What sales volume can I expect from a Smitty’sTM
Our restaurants currently operate at an average sales volume of approximately $1,100,000. Smitty’sTM has proven to be profitable at varied investment and sales levels. A detailed analysis is undertaken prior to acceptance at each location.
7. What can I expect as a return on investment?
How much money a Smitty’sTM franchisee makes will depend on market conditions and management control. It is essential to fully understand the profit potential of any business venture you are contemplating. Before you invest you should thoroughly investigate to determine what risks are involved and at what level of profitability you can reasonably expect from your business. The best way to determine this is by referring to the average store information that Smitty’sTM supplies. We provide a list of our franchisees complete with names and phone numbers. Contact as many of them as you like in order to have all your questions answered.
8. Do I have to operate the store or can I simply invest? What about a partner(s)?
For all independent Owner-Operator franchise locations Smitty’sTM insists that one of the partners be responsible for the day-to-day operation of the store.
9. Is there a training program?
Smitty’sTM has a 3-week training program at the corporate training facility in Calgary for you and your head cook. This time frame may be more or less depending on your experience. You will be provided with a copy of our detailed Smitty’sTM Operating Manual and an Employee Handbook. Our corporate chef will personally train your head cook in all areas including, recipes and portion control, food preparation, quality control, purchasing and inventory control, scheduling and proper cleaning methods.
We will train yourself or your manager in all aspects of running a Smitty’sTM restaurant including customer service, hiring and training of staff, scheduling and cash management. The managers training will also include kitchen and lounge duties. Our accounting department will review accounting procedures with you, and will supply you with a Smitty’sTM Accounting and Administration Manual.
10. What support is given for a new store opening?
A successful opening is a critical step in the development of a Smitty’sTM franchise operation. In addition to providing training in all aspects of general management of a Smitty’sTM restaurant, we assist the franchisee and the management team with a "hands on" support team for approximately 5 days prior to the opening and approximately 2 weeks after the opening, until such time as the management and staff are fully in control of the operation.
11. What ongoing support is given to a franchisee?
The main function of the franchisor is to assist the franchise system. Smitty’sTM offers full support in all areas of accounting, menu development (through our menu planning committee), marketing (through our marketing committee) and human resources.
12. Who selects the site?
Site selection is critical to the success of a Smitty’sTM. Because of this importance, Smitty’sTM insists on approving all sites. We do provide assistance in lease negotiations and site selection.
13. Who designs and builds the restaurant?
Smitty’sTM provides the complete design drawings for your restaurant at no additional cost to you. The tendering process and construction are your responsibility, although our Project Director will provide assistance in coordinating the landlord, architect, contractor and suppliers. A workbook schedule containing key dates and timing will be provided to you.
14. What is the next step?
Please feel free to call us for additional information. If you are interested in pursuing the possibility of becoming a Smitty’sTM franchisee, please complete the enclosed Franchise Application and submit on-line.
Once the information has been reviewed and it has been determined that the information meets the criteria necessary to become a Smitty’sTM franchisee, we will be in contact. This contact, or perhaps a personal meeting also serves as an approval meeting. If the contact or personal meeting is successful, and should you choose to proceed, then a $5,250 CA refundable deposit (in Alberta) or $10,000 CA refundable deposit (elsewhere) is required so that we may begin site selection and development.
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