FAQ
• What are the franchise fees and royalty payments, and how are they collected?
• Is previous food or restaurant experience necessary to obtain a D’lish franchise?
• What kind of training and support can I expect, and is there a cost for this?
• Am I protected from other D’lish shops opening near my shop?
• Can I reserve territories for future development after my first shop?
• How long do I have to develop the shop under the Franchise Agreement?
• What is the average size of a D’lish shop, and what/where is a typical location?
• How is an area defined for a Development Agreement?
• How long is the Franchise Agreement, and is it renewable?
• How much is the advertising fee?
• What is the advertising fee used for?
• I have little or no experience in commercial lease transactions. Will D.F.G. assist me?
• What does the franchise system include?
Q. What are the franchise fees and royalty payments, and how are they collected?
A. The franchise fee is $17,500, which is paid in full at the time you execute the Franchise Agreement. Development fees for multiple shops are additional. Royalties are 7% of gross sales (net sales + comps and discounts), payable weekly plus an additional 1% to the franchisee marketing fund. You must use the POS system we designate and have internet access at your shop location. Your POS system will be polled to keep track of sales.
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Q. Is previous food or restaurant experience necessary to obtain a D’lish franchise?
A. Restaurant experience is always helpful, but if you have experience running another type of business including working with employees and customers, managing cash and generating financial statements, we have a complete training program and manuals as well as field operational staff that can help you learn this business as well as provide ongoing support for you.
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Q. What kind of training and support can I expect, and is there a cost for this?
A. D’lish Franchise Group is staffed to provide support to you in finance, development, site selection, planning, design, construction, marketing and management of ongoing operations. The cost is included in your franchise fee, including training and support at your location for the Grand Opening. Travel, lodging and food are the responsibility of the individual Franchise Partner. Ongoing field support after opening can be provided at a per diem cost.
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Q. Am I protected from other D’lish shops opening near my shop?
A. At the time a location is determined for your first shop, a “Protected Area” will be established. The size of the area will depend on the density of population, traffic, competition and other factors.
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Q. Can I reserve territories for future development after my first shop?
A. Yes. At the time of signing your Franchise Agreement, you can also sign a Development Agreement defining the number of shops and area(s) in which you plan to open those shops.
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Q. How long do I have to develop the shop under the Franchise Agreement?
A. You have 180 days to open a shop.
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Q. What is the average size of a D’lish shop, and what/where is a typical location?
A. Our locations are typically kiosks, ranging in size from 150-500 sq feet, which allows us to go and be anywhere…malls, airports, sports arenas, entertainment centers, etc. However, we also have the flexibility of converting old buildings and rooms into D’lish shops and do not enforce the “kiosk model.”
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Q. How is an area defined for a Development Agreement?
A. Based on the general location you wish to operate in, we will define an area(s) large enough to hold the number of shops you have purchased under the Development Agreement. You will also have a right of first refusal to any location in the Development area that becomes available in addition to the shop opening schedule in the Development Agreement.
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Q. How long is the Franchise Agreement, and is it renewable?
A. The Franchise Agreement is valid for 10 years and renewable for 10 additional years upon payment of 20% of the Franchise Fee being charged at the time of renewal.
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Q. How much is the advertising fee?
A. The advertising fee is 1% of net sales with a portion of that fee being reallocated to a regional Co–op. You are also required to spend at least 2% of net sales on local advertising. This may also be reallocated to a regional Co–op.
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Q. What is the advertising fee used for?
A. We use the fees for creation, production and placement of commercial media advertising, public relations, market research, brand recognition, and in-house staff coordinating these efforts. We do not use the funds to solicit Franchise Partners.
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Q. I have little or no experience in commercial lease transactions. Will D.F.G. assist me?
A. Yes. We have on-staff personnel who are familiar with commercial leasing, including tenant work letters, and letters of intent. While we will review and help prepare these documents, we do not serve as legal counsel or in any other professional capacity.
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Q. What does the franchise system include?
A. Owning and operating an assigned D’lish franchise, use of brand name, trademarks, recipes, operational systems and methods, and décor. Additionally, you will receive support in these specific areas:
• Facility planning on site location and architectural design
• Specifications for fixtures, equipment, and leasehold improvements
• Assistance in site selection and lease negotiation
• Corporate training for Owner/Operator and Director of Operations
• Marketing/Advertising
• Shop Workflow design
• Ongoing support from members of the Training and Operations Team
• Ongoing updates for increasing profitability
• Products with high industry demand
• Efficiency in all systems
• Favorable contracts with suppliers of goods and services
• Operating manuals, policies, procedures, and business management systems
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