Chilli Peppers Texas is about family. We live this attitude with
our customers, employees, and suppliers. This document is designed
to provide general answers to Frequently Asked Questions (FAQ).
As you read this document, please rate the
priority of each respectiveFAQ on a 1 - 3 - 9
scale, where "1" is not very important, "3" is somewhat important,
and "9" is very important to you. Reading each FAQ and rating
each FAQ using this 1 - 3 - 9 scale will help you clarify what to
focus on during your follow-up discussion with the Director of
Franchise Operations at our Corporate office in Dallas,Texas. When
finished, simply press SUBMIT and we will contact you via email for
the next step your process to discover if being a Chilli Peppers Texas
franchise owner is the right decision for you.
We pray this FAQ process will be another step in helping you to
make the best decision for you and your family. In the end, if you
too believe this will be a win/win , then we will welcome you into
our Chilli Peppers Texas family in an effort to prosper for financially
and professionally
1. What makes Chilli Peppers Texas a unique
business?
Chilli Peppers Texas differentiates itself from
the others by providing proprietary & delicious tastes,
at value pricing in a family-friendly environment. Customers
are loyal because this differentiation and due to the high
efficiency of our restaurants. This business model allows
the franchise owner to be profitable after the normal
start-up period, live a balanced lifestyle, and command
respect within the community
Rate it
***
2. How can I become a Franchise owner
(Franchisee) ?
First we will provide you with
requested information based on your submission of this
filled-out FAQ document. Then we will invite you to visit
our flagship store in Frisco, Texas to better understand the
opportunity. This soft sell is designed to help you gather
facts, and not apply pressure. This is an important decision
for you and us. Going forward, we will provide you with any
information which you request that is within guidelines
established by U.S. Federal Trade Commission and your
respective State government
Rate it
***
3. While Chilli Peppers Texas does not
currently deliver, are there plans to offer delivery
?
Yes, for special events like the upcoming NFL
"Super Bowl XXXVII" we will deliver within a three (3) mile
radius of each store. Depending on customer response and our
cost factors, we will make a decision in the summer of 2003
whether to extend this service to some or all stores for a
particular radius. As well, some stores will be equipped
with drive-through windows (which requires special staging
areas in the stores to minimize wait time for each
order)
Rate it
***
4. What is on the Chilli Peppers Texas menu
?
First of all of, each Chilli Peppers Texas' food item is
freshly made in each restaurant and cooked to order. We
offer "Naked" Chicken Wings; Savory chicken, corn, or potato
& peas Samosas, Chicken Tenders, Side orders of Potato
Salad, French Fries; Kids Meals, Beverages. As well, Chilli Peppers Texas Restaurants also has a separate catering menu with
larger portions and special flavors
Rate it
***
5. How does Chilli Peppers Texas' maintain
unique flavors for its' wings and other food items
?
Chilli Peppers Texas imports its' proprietary spices and
sauces from South Africa, then blends and tests at our
Central Commissary in Fort Worth, Texas, for distribution to
each sites. Currently, these spices and sauces are only
available at our Chilli Peppers Texas locations. In the future,
and depending on market acceptance, we have plans to
commercialize these proprietary spices and sauces in
national food retailers
Rate it
***
6. Does Chilli Peppers Texas make money from supplying the proprietary spices and
sauces ?
Yes, we derive a small margin to cover the
cost of labor, materials, and shipping. Our central
commissary then sells respective supplies to each store at
this base cost so that franchised Chilli Peppers Texas stores will
pay the least possible cost for our proprietary taste. The
Central Commissary is expected to simply break-even with
respect sales to our Chilli Peppers Texas
stores.
Rate it
***
7. Where is an ideal Chilli Peppers Texas
location ?
We want to locate Chilli Peppers Texas middle to
higher income neighborhood strip shopping areas, within
three (3) miles of our target population (demographic). Such
shopping areas normally provide a high convenience to our
customers to simply drive-up then get in-n-out within ten
(10) minutes. As well, they are generally are less expensive
to lease compared to enclosed malls, airports, or other
shopping areas.
Rate it
***
8. What is the format of a typical
Chilli Peppers Texas ?
The typical Chilli Peppers Texas
store is 1800 square feet. The interior and exterior design
guidelines are provided, along with details on equipment,
electrical, plumbing, etc. after the UFOC is
co-signed.
Rate it
***
9. What is a UFOC ?
The Uniform
Franchise Offering Circular (UFOC) is a document co-authored
and governed by the U.S. Federal Trade Commission as
"UFOC(1993) guidelines". This UFOC(1993) document requires
franchisors like Chilli Peppers Texas to prepare offering
circulars that are readable and accessible to prospective
franchisees in regard to all categories of the Chilli Peppers Texas franchise opportunity. For example using UFOC (1993)
guidelines, Chilli Peppers Texas must provide sufficient
disclosure to allow you (the prospective franchisee) to
understand your possible economic commitments by developing
a business plan if you become a franchisee. More
specifically, Items 5, 6, 7, and 8 of UFOC(1993) require
disclosure of anticipated minimum and maximum franchisee
costs. To this regard, the franchisor (Chilli Peppers Texas ) is
expected to provide reasonably available information to
allow you (the prospective franchisee) to forecast costs and
future charges, including those paid to persons who are
independent of the franchisor. These and other details will
be made available to you once you complete and submit this
FAQ document, and we have our face-to-face
discussion.
Rate it
***
10. How much will I need to invest
to open a Chilli Peppers Texas store ?
Our up-front
franchise fee is $35K per store (in general), $50K for
equipment, $35K for interior finish, $10K for initial
perishable and non-perishable supplies, and $5K/Mo for rent
and utilities. Exceptions may be made on the per store
franchise fee when a candidate Franchisee is interested and
capable of acquiring Franchise rights for a particular
geographic region. Depending on individual credit history
and requirements of a particular lender, in most cases this
investment can be financed. In fact, Chilli Peppers Texas has a
special relationship with the Small Business Administration
(SBA) to decrease the paperwork and time required to qualify
and possibly obtain an SBA loan. Such exceptions and
discussion are for face to face meetings following the stage
after this FAQ document is completed.
Rate it
***
11. What do I get for my money
?
Investment range covers all fees, construction
costs, starting inventory, decor, equipment, and even
includes working capital. Essentially, these numbers
represent everything you need to open and operate a Chilli Peppers Texas. It is also what the banks sometimes call the "total
project cost".
Rate it
***
12. What fees are directly to Chilli Peppers Texas ?
Our up-front franchise fee ($35K per store in
general; see comments in FAQ 10), a Royalty of 5% of gross
monthly sales (paid the first week of the following month),
and 2% of gross monthly sales for the Chilli Peppers Texas pooled
advertising (some of which may be rebated to a particular
store if respective quarterly sale volume targets are
achieved). Such discussion are for face to face meetings
following the stage after this FAQ document is
completed.
Rate it
***
13. How much profit can I expect to make
in the first year, and following years after opening my
Chilli Peppers Texas site ?
At this stage of your due
diligence process, we are not allowed or authorized to
provide any information regarding potential revenues or
profits, per the Federal Trade Commission's rule on
Franchising. At a later stage, we will connect you with
current Chilli Peppers Texas franchisees who may choose to share
this data with you after you receive our UFOC. As well, Item
of our UFOC contains actual financials FY
2002.
Rate it
***
14. Can you send me a Chilli Peppers Texas UFOC
for my review today ?
We choose to provide our UFOC
to franchise candidates WHEN OUR DIRECTOR OF FRANCHISE
DEVELOPMENT COMPLETES OUR DUE DILIGENCE PROCESS AND
DETERMINES YOUR SUITABILITY TO BE A Chilli Peppers Texas
FRANCHISEE.
Rate it
***
15. When can we have a face-to-face
meeting, what should I bring to be prepared, and how much
time is required ?
After this FAQ document is
completed and submitted, we can arrange for you to come to
our corporate office in Dallas, Texas. Typically, these
meetings begin at 2:00PM. If all is going well our
discussions, we target spending from 3:30-5:30PM our
flagship Chilli Peppers Texas site in Frisco, Texas, to that you
can experience dinner prep, and dinner service. For this
meeting you would bring your resume of experience and
education, personal and/or business financial statements,
and any up to two members of your franchise
team.
Rate it
***
16. How much time is needed from "start
to finish" before I can open my Chilli Peppers Texas store
?
The process can takes as little as six (6) months,
and usually not more than nine (9) months. The factors that
have this timing is your ability to finance the project
directly or via second sources (SBA loan, etc.), as well as
your ability to locate and secure the right store location
per our demographic guidelines.
Rate it
***
17. Who is my main contact going forward
?
Our Director of Franchise Operations, Riyaaz Tayob,
at our Corporate office may be contacted at franchise Email Upon
contact, he will provide you more detailed contact
information as is required to respond to your questions and
inputs.