Discovery Day Agenda
• Concept History & The EFV Team • Concept Overview • Industry Overview • Franchise Program Overview • Restaurant tour, sample menu, observe shift & unit level management systems
History
• Founded in 2005 – Opened first location in Falls Church, VA – Husband & Wife duo: Hans & April Hess • Loyal Customer Following with minimal marketing • Franchise Expansion began in early 2008 • Worldwide Growth Underway • Over 30 Units Open (USA & Middle East) as of March 2013 • 175+ Units in Development. Hans Hess – CEO, Founder
Hans Hess is the founder and Chief Executive Officer of Elevation Franchise Ventures, LLC. He founded Elevation Burger to spread the gospel of great tasting, 100% organic burgers made from grass fed beef that are better for you and better for the environment. As its founder, Mr. Hess provides strategic direction for the Elevation Burger brand and mission. He actively manages the growth and development of the brand by overseeing restaurant development and cooking procedure, to guest experience and marketing/public relations. Before opening Elevation Burger in September 2005, Mr. Hess developed its patented process for cooking fries in olive oil, its secret recipes, its distinctive look and feel, and its unique vision. From 2000 to 2004, Hans worked for Brailsford & Dunlavey (B&D) as a retail food service and real estate consultant. Hans Hess – An industry innovator!
• First organic burger joint! (Saveur Magazine – Burger Franchise Firsts Apr 2009) • First to commercially cook fries in olive oil – patent pending! • First conveyor style griddle to revolutionize better burger business – patent pending! • First all hybrid taxi fleet! (Envirocab – another eco friendly Hess family business) Conveyor Style Griddle Introduced June 2011 Germantown, MD April Hess – CFO, Founder
April A. Hess is the Chief Financial Officer of Elevation Franchise Ventures, LLC (EFV) and Head Trainer. April has worked in the financial services industry for more than a decade. For the past six years, April has specialized in providing comprehensive financial planning (retirement, cash flow, tax, risk management, investments, and estate planning) services to affluent individuals as part of SunTrust’s Private Wealth Management Group and Wachovia’s Wealth Management Group.
April also spent five years with J.P. Morgan Chase & Co. in Internal Consulting Services and the Private Bank. She is a Certified Financial Planner™ practitioner and holds the Certified Public Accountant (CPA) designation. Michael Berger — Managing Partner, Real Estate & Supply Chain
Michael Berger is the Managing Partner for Elevation Franchise Ventures, LLC, the parent company of the fast casual burger restaurant Elevation Burger. On a day to day basis, Mr. Berger is in charge of EFV’s Franchise Development, Real Estate, and Supply Chain departments. In 2008, Mr. Berger helped found Elevation Franchise Ventures alongside co founders Hans and April Hess, EFV’s CEO and CFO, respectively, who created and founded the Elevation Burger brand, and its first restaurant, in 2005. Prior to his work at Elevation Franchise Ventures, Mr. Berger was a Project Manager at Brailsford & Dunlavey; a Washington DC based firm specializing in real estate planning and development for colleges, universities, government municipalities and professional sports teams. Mr. Berger is a native of Reston, VA and now resides in Washington, D.C. with his wife and four month old son. Management Team
• Cynthia Hess: HR director • Responsible for corporate positions and corporate store hiring. • California native; background in Genetics, Philosophy, Statistics and Psychology
• Jessica Ordona: Manager, Real Estate Development • Real Estate Manager • Education in Fashion Merchandising, Marketing, and Business • 2+ years in Retail Real Estate consulting, representation, development Management Team
• Mark Christopher Gustus: Corporate Trainer • Originally from CA • 8 years of experience training and developing members of the workforce
• Jason Low: Corporate Trainer • Eight years of experience as an instructor • Bachelors of Science degree in Marketing and Masters Degree in Educational Leadership from San Jose State University Management Team
• Brent Desmond: Head Trainer • Born in Salinas, CA. Attended Linfield College in OR. Graduated in May, 2009 with a BS in Finance • Works on everything from training/store openings, to overhauling the operations manual, to maintaining corporate store facilities
• Oliver Mead: Supply Chain Analyst • Graduated from Cal Poly, in 2009 with a BS in Statistics • Interned with EFV during the summer of 2008. Worked as an assistant manager of the new Park Potomac store
The Concept
• Innovative Quick Service / Fast Casual restaurant • High Quality, Nutritionally Superior Fare • Made to Order • Focus on Organic Ingredients • Sustainable and Environmentally Friendly Practices • Friendly and Engaging Staff • Reasonable Price Elevation Burger is THE PIONEER in offering a reasonably priced organic burger that tastes great and is better for you . Differentiators: 100% Organic, Grass Fed, Free Range Beef
• 100% USDA Certified Organic , 100% Grass Fed , 100% Free Range Beef
• Fresh Fries , Made to Order in 100% Olive Oil – patented process; only commercial application in USA
• Vegetarian and Vegan Burgers – fire roasted taste or veggie taste
• Hand Scooped Milk Shakes – made to order
• Cookies Freshly Baked On Site made with organic eggs and butter Differentiators: Fresh Fries Cooked in 100% Heart Healthy Olive Oil
“If only french fries could be fried in olive oil...” President Clinton, Governor’s Conference on Obesity
President Bill Clinton & EB Founder, Hans Hess
Differentiators: Fresh Fries Cooked in 100% Heart Healthy Olive Oil
• Potatoes Hand Cut Fresh in front of the guest Fresh Fries • Cooked in 100% Heart Healthy Olive Oil Healthier and More Nutritious • Zero Additives just Olive Oil, Potatoes, and a dash of Salt! • Safer for those with Food Allergies (no gluten , no nuts, etc.) • Patent Protected Cooking Process Differentiators: Two savory veggie burger options
• Veggie Burger #1 three kinds of mushrooms, onions, brown rice, rolled oats, mozzarella and cheddar cheeses, bulgur, parsley and spices. • Veggie Burger #2 includes organic ingredients, such as brown rice, corn, carrots, onions, green peppers, rolled oats, red bell peppers, soy protein and flavoring and spices NRN June 2011: Veggie Burgers Get Respect “Since we opened, we wanted to be sure our concept included options for vegetarians because they usually get treated like second class citizens,” said Hans Hess, Elevation Burger’s chief executive and founder. Differentiators:
June 2011 – Elevation Burger introduces revolutionary conveyor style griddle! Customer speed of service Fresh / Customizable Food Simplified employee training Food consistency Faster production = increase sales Add more options to menu (i.e.. bacon) NRN June 2011: Elevation Burger debuts efficient new griddle June 2011 NRN – Having Words with Hans Hess
Paul Frumkin of Nation’s Restaurant News conducts a Q&A style interview with Hans Hess, Founder, chief executive, Elevation Burger. Excerpt: Q: Talk a little about your new griddle. A: It’s like nothing you’ve ever seen. You put the bun and the freshly packed The Super Griddle
• Developed by Elevation Burger founder and CEO Hans Hess, the Super Griddle’s purpose is two fold: transparency and convenience for guests. “I wanted to create a system that was able to consistently serve more guests while making the experience of getting your burger made more transparent, open and observable,” says Hess.
• “When I went into places like Chipotle, I noticed the line moved fairly quickly because the production was a continuous, one piece flow, as is seen in lean production methods. We use batch cooking in our normal operations, so I envisioned a way to translate the continuous flow production line to cooking burgers. The idea for the conveyor belt was born from the absence of an established way of making burgers to order efficiently, rather than in batches.”
• The Super Griddle also has benefits for franchisees by making it far easier to train staff. With batch operations, there are 37 steps to make a burger that are divided amongst several staff. With a continuous flow along a conveyor, steps are simplified, resulting in greater consistency when cooking and assembling the finished burgers.
The Concept
“We believe our guests want to feel good about the food they eat , the environment they purchase it in , and the employees that serve them .
Because of this belief, we teach our team that we are trying to elevate the product , the guest experience , and the employee .
By focusing on these three things, Elevation Burger offers an outstanding value and enjoys outstanding customer loyalty .” Our Mission
• Our mission is to become THE LEADER in the organic, natural foods, quick service restaurant sector by serving food that is: – Superior in quality and more nutritional than our competitors’ products – Enjoyed in a clean , healthful , and environmentally sustainable atmosphere – Served by people engaged in meaningful work who show that they sincerely care – All for a reasonable price
Sustainability
• Consumers are Definitely Paying Attention . – 60% “likely to choose a restaurant based on how environmentally friendly it is.” - National Restaurant Association
• EB Encourages Franchisees to Pursue: – Carbon Offsetting – Waste Oil Recycling – Paper, Glass, and Aluminum Recycling – USGBC’s LEED Certification, which Includes Environmentally Sustainable • Construction Practices • Building Materials • High Efficiency Equipment • Operations Practices Why Elevation? Why Now?
• Savvy Consumers Want Better Options: – Freshly Prepared – Better Taste – Authentic Ingredients – Healthier ; More Nutrients • Savvy Consumers Appreciate: – Inviting Dining Room and Kitchen – Attentive , Engaging Staff – Good Value: Quality for a Reasonable Price – Environmental Responsibility in: • Food Sourcing and Production • Restaurant Development and Operations EB Answers each of these Desires ! Our Fans
“We really like the quality of the beef and the secret sauce. The prices are very reasonable and that is why we take our three boys there regularly!” Robin Andersen
"I think the menu at Elevation Burger is great. It offers organic beef which makes for a healthy burger as well as French fries cooked in olive oil. The flavor and freshness of their food sets them apart from any other burger place in the area.” Megan Schlitt
“A friend mentioned that the burgers were much better than Five Guys and that everything they served was very fresh. We were not disappointed. We don't eat out very often, but when we do, Elevation Burger is usually one of the top choices.” Vaughan Moore Awards & Accolades
• Founder/CEO Hans Hess recognized as “40 40 Under 40” by Washington Business Journal 2010 • Founder/CEO Hans Hess received the “ Green Business Visionary ” Award from Washington Business Journal 2008 • “Green Business Award” from Washingtonian Magazine 2009 • Semi Finalist: Washingtonian Magazine’s prestigious “Best Burger Bracket” 2009 Press on Better Practices Elevation Burger on the News Elevation Burger on the News
ABC7 Washington Business Report FastCompany Entrepreneur Washington Post
“The takeaway from the proliferation of cupcake and hamburger chains has been that people are willing to pay for high-end treats. If we are going to eat ‘unhealthy,’ we want to do it right…Look at what has been successful among brands like Georgetown Cupcake, Pinkberry and Elevation Burger, and think about what they have done well…” – Elana Fine, managing director of the Dingman Center for Entrepreneurship at the University of Maryland’s Robert H. Smith School of Business Middle East Press
“Inside Elevation Burger, customers line up 10 deep for the organic burgers.” - Bloomberg
“We plan to open as many as 15 units in the Kingdom of Saudi Arabia.” – Hans Hess, Bloomberg
“Naughty as burgers may be, this venture offers a healthy twist, serving patties made with 100 percent organic and grass-fed beef, as well as fries cooked in olive oil.” – Time Out Dubai Middle East Press Featured on CNBC CNBC – People, Planet & Profit Special Report Fox News Spotlight
“Fox News: The Nation’s First Organic Hamburger Restaurant – a healthier alternative to fast food ” Fast Food Mania ABC World News
ABC World News: November Unemployment Rate Falls to 8.6 Percent Daniel Magnus is an example of a restaurant franchise employer who is ready to hire. Magnus is the founder and CEO of Magnus LLC, the exclusive area franchise developer for Elevation Burger in Westchester County, New York and Fairfield County, Connecticut. Magnus plans to open another three franchise restaurants in 2012, creating about 75 new jobs. Said Magnus to ABC News, “People have been really, really grateful in some cases about being hired, and it feels really good to be able to give people opportunities.” Associated Press Article
By MATTHEW BARAKAT Associated Press
“Higher grade beef, fresher or more creative toppings, and better buns are bringing customers in the door.” Industry Press
QSR Magazine: Ones to Watch “They created a restaurant with the lofty goal of “elevating” the classic meal of American burger and fries to a new level.” The concept “became a hit with people who wanted fast food without a side order of guilt.”
Nation’s Restaurant News: Elevation Burger adds toppings, plots expansion “The brand doubled its number of units in 2011, and is expected to repeat that performance again in 2012, rising to about 50 units by the end of the year. Six or seven developers in the Middle East also are moving ahead with expansion plans. Hess said a new unit is scheduled to open soon in Qatar, and by the end of 2012, he said he expects new units to open in Saudi Arabia, Morocco, Jordan and Egypt.” In the News
Imitation is the sincerest form of flattery
The Wall Street Journal June 29, 2009: At Elevation Burger, a seven outlet chain owned by Elevation Franchise Ventures LLC, a vendor in March found an unauthorized Twitter profile with tweets promoting rival Z Burger. Hans Hess, Elevation's founder and chief executive, complained to Z Burger and Twitter, which later suspended the profile after a letter from Mr. Hess's lawyer.
Kenny Fried, a publicist representing Z Burger, says owner Peter Tabibian created the Elevation Burger profile on Twitter, as well as profiles in two other competitors' names, "to be creative and fun in promoting Z Burger" and didn't intend to be malicious. Burger Business Interview
Why Elevation Will Survive the “Better Burger” Shakeout BurgerBusiness.com: Elevation Burger is in growth mode, eyeing expansion into more urban markets and preparing to launch a new prototype for the "better burger" chain that will include cast iron griddles. Founder and CEO Hans Hess says the company's limited menu of 100% organic, grass fed beef burgers is a recipe for success, allowing Elevation to focus its innovative efforts on speeding delivery of an increasingly better product rather than constantly creating new menu items. Fast Casual Magazine 2012 Top 100 Movers & Shakers
The Better Burger Segment Fast Casual Magazine 2013 Top 100 Movers & Shakers
To be published in June 2013 – Elevation Burger broke the top 25! Fast Casual Magazine 2011 Top 100
66. Elevation Burger Arlington, Va. / No. of units: 17 During the past year, Elevation Burger has more than doubled its number of locations in the U.S. and rolled out its first international franchises. Founders Hans and April Hess, whose Elevation Franchise Ventures LLC began offering franchises in 2008, report they have commitments to open more than 60 locations in existing markets as well as Dallas, New York and Washington, D.C, along with at least five in Kuwait. Their goal is to have almost 100 locations within the next few years to serve their 100 percent grass fed, organic and house ground beef, non processed cheese, fresh cut fries and hand scooped shakes and malts. Fast Casual Magazine 2009 Top 100
56. Elevation Burger: Arlington, Va. In 2009, the first five Elevation Burger franchised locations opened and, as of January 2010, 45 locations had been sold. Restaurants are planned for the markets of New York City; Coral Springs, Fla.; and Potomac, Md. The first international units also were sold with five locations set to open in Kuwait. The company is working on several new franchise deals around the United States and in some limited international markets.
In the News
What's Cooking? Elevation Burger Franchisee Neeraj Vohra and Michael Berger, director of organic burger stop Elevation Burger, whip up a banana split shake on today's What's Cooking. In the News
Wynnewood, PA
Washington, DC Awards & Accolades
Best Reason to Go to Falls Church: Chocolate Milkshake at Elevation Burger Final Four: Washingtonian’s Best Burger Bracket In the News
Elevation Burger set up its kitchen to do what couldn’t be done “The patented process manipulates such variables as cooking time, oil temperature and the sugar content of potatoes. The result is crispy , golden fries that are ‘a huge differentiator ’ for the concept and a draw for healthful eaters .”
“The 1,800 square foot restaurant has been a successful proving ground for a limited menu of healthful and flavorful fare and a relatively simple equipment package.” $5 Burger, $5 Million Dollar View! Elevation Burger National Harbor Restaurant Reviews
ABC7’s Julie Parker heads to Elevation Burger in Potomac with long time food critic Michael Birchenall, who knows his burgers. “Grass fed organic beef. It’s got good flavor,” Birchenall said. “You have to take a nice big bite. The cheese is delicious, and the condiments aren't overwhelming,” Birchenall critiqued. He appreciated the cheddar – and noted the two hand formed patties. Birchenall says this burger has everything he’d hope for: “It's got the nice bun. It's toasted. You can taste it. It's a good burger.” Press : What the Critics are Saying… Press : What the Critics are Saying…
“Rumors are flying that this no frills newcomer is the next generation of burger joint, a welcome and wanted alternative to mechanized fast food giants.” AOL City’s Best Guide, Washington DC
“Devout carnivores can ravage burgers made from fresh beef.” – Washington City Paper
“We’re all winners for having two sensational burger joints to choose from.” Northern VA Living Magazine Press : What the Critics are Saying…
“I’m talking about the satisfaction of wiping the juice from a flavorful and perfectly grilled cheeseburger off your chin, wolfing down a bag of fries , washing it back with a milkshake and convincing yourself that you just ate a salad . Where else can you do that?” - Eric Easter, Uptown Magazine Press : What the Critics are Saying…
“Is a hamburger a turn-on? It is when the sandwich is made well, and is (relatively) good for you. [The hamburgers] are nicely seasoned, and grilled to retain a juicy center.” Tom Sietsema Press : What the Critics are Saying… Press : What the Critics are Saying…
Menu Menu Menu (Take Out) BEEF QUALITY COMPARISON
QUALITY Environment? Antibiotics? Hormones? Diet? Pesticides?
LOW Potentially; Mostly grain , Large feed lots Antibiotics to Grain almost hormones typically which is high in with cramped stop illness always Factory given to dairy cows calories, and conditions. Illness and increase contains Farmed Beef (may be slaughtered ensures quick is common. weight. pesticides . for beef). weight gain.
Mixture of Grain/grass Some time in feed grain and diet often Natural Beef lot ; some time in No antibiotics. No hormones. grasses, contains pasture. depending on pesticides . producer.
Can be a MEDIUM Usually grass- mixture of pasture raised for No antibiotics. No hormones. No pesticides. Organic Beef grass and most of life. grain.
HIGH Entirely Free- Diet of 100% Range-, Grass- No Diverse, Wild No EB's 100% No Hormones. USDA Certified Pasture-Raised Antibiotics. Grasses for Pesticides. Organic Beef for Entire Life. Entire Life.
The Burger Segment
Dominated by “Fast Feeders” McDonalds $53 billion • According to the National Burger King $12 billion Cattlemen’s Beef Association , Wendy’s $9 billion hamburgers dominate away from Sonic $3 billion home beef servings , accounting Jack in the Box $2.8 billion for 70% of total consumption . Hardee’s $1.8 billion Carl’s Jr. $1.3 billion • The top five burger chains account Whataburger $885 million for annual sales of $80 billion . Total Market $85 billion - Restaurants & Institutions Ranking Healthier Alternatives Pioneers
Burritos Subs Pizza Burgers
Chipotle Subway Z-Pizza Elevation Burger Burger Segment Positioning
NEW SEGMENT OPPORTUNITY Fast Food Quick Casual Gourmet Organic/Healthy $80B+ • McDonalds • Five Guys • Counter • Elevation • Burger King • Topz Burger Burger • Wendy’s • Smashburger • Red Robin • Sonic Drive In • Mooyah Gourmet Burgers • Jack in the Box • Hardee’s • Carl’s Jr. • Whataburger
Burger Joint Quadrant or “How much shame do you feel after eating at ?” Healthier Alternatives
EB is THE Healthier Burger Pioneer What makes EB THE PIONEER in healthier burgers? – 100% USDA Certified Organic, Grass Fed, Free Range Beef – More Sophisticated Flavor – Fresh Fries Cooked in 100% Pure Olive Oil – No Trans Fat on the Menu! – Freshly Prepared Produce Adds up to a New Approach Organic It’s Mainstream…
Chipotle : Naturally Raised meats, Organic sour cream, etc.
Wolfgang Puck Restaurants : All-Natural and USDA-Certified Organic meat and produce.
Compass Group : Announces they will serve eggs from Free-Range hens only. Organic It’s the Future…
• Organic beef satisfies a fast growing consumer demand for healthier alternatives.
• “Hot food and drink trends include alternative source ingredients like locally grown produce , organics , sustainable seafood, grass fed and free range items, and alternative red meats .”
– National Restaurant Association Organic It’s Desirable…
• 71 percent of adults say they try to eat healthier now at restaurants than they did two years ago. – National Restaurant Association 2011 Forecast
• 69 percent of adults say they are more likely to visit a restaurant that offers food grown or raised in an organic or environmentally friendly way. – National Restaurant Association 2011 Forecast
• Nearly 3/4 of American teenagers (73%; ages 12 17) say they try to eat nutritiously when dining out . – National Restaurant Association
• 72% of consumers associate “healthy” with natural , organic , and sustainable menu item positioning. – Technomic Organic It’s Here to Stay…
“Healthier eating is not a fad , it’s a trend. It’s not going to go away .” - Ron Paul, President, Technomic, USA Today
Top 5 2012 food innovation product predictions: (1) Organic Foods – A Global Trend 2013 Industry Growth
Casual dining, fast casual concepts stealing market share Nation’s Restaurant News Feb. 11, 2013: Technomic study finds restaurants in these segments could be luring customers from quick service and upscale casual brands. In its “Future of Casual Dining Consumer Trend Report,” the market research firm found that 85 percent of consumers surveyed said they eat at fast casual restaurants at least once a month, and 82 percent reported visiting a traditional casual dining brand once a month. The strength of traffic at traditional casual dining restaurants resulted in part from customers trading down from upscale casual, the report found, as only 40 percent of respondents who recently patronized a casual dining restaurant also visited an upscale eatery in the same time frame. 2013 Restaurant Industry Overview • In 2013, Sales will reach a record high of $660B, up 3.8 % over 2012 sales
• Of these restaurant industry sales, $188B will belong to the QSR industry – a 4.9% increase for that segment
• The restaurant industry will employ 13.1 million employees in 2013 – Making it the 2 nd largest private sector employer
Restaurant Industry job growth will continue to outpace regular employment growth for the 14 th consecutive year. Restaurant job growth hit 17 year high in 2012. 2013 Industry Growth
“According to The Franchise Business Economic Outlook: the franchise sector is projected to create 162,000 new jobs and open more than 10,000 new franchise businesses in 2013 .” – Fast Casual Magazine
Fitch expects average annualized same store sales growth of 1 3 percent in the U.S., and 2.3 percent GDP growth during 2013. – Fast Casual Magazine Industry Trends
Technomic: Fast-casual brands ahead of industry growth
“Sales and unit growth at the country’s largest fast-casual chains continue to outpace that for the overall restaurant industry, according to the latest Fast-Casual Top 150 Chain Restaurant Report from Technomic.”
“The Chicago-based industry research firm found that the 150 largest fast- casual brands combined to grow their sales 8.4 percent to $21.5 billion in 2011, compared with a year earlier. That rate of growth increased from a 6.6-percent gain in 2010.” QSR 2013 Predictions
According to QSR and the National Restaurant Association , the quick service industry will grow by almost 5% this year 2013 Industry Trends
• More than seven out of 10 consumers say they are trying to eat healthier at restaurants now than they did two years ago
• Similarly, about three quarters of consumers say healthy menu options are an important factor when choosing a restaurant. Burger Segment Growth
• Burgers are one of the hottest trends on today's dining scene. In our national survey of over 1,200 consumers, 94% reported eating burgers at least occasionally. • The quality of burger ingredients , and of proteins in particular, is critical to the burger purchasing decision. More than half of consumers surveyed (55%) said that the quality of the meat or other protein used to make a burger is more important than any other factor. An additional 20% of consumers said that the quality of the meat is the second most important attribute for burgers. NRA Forecast Highlights:
• Restaurant operators continue to step up their efforts to go green . Four of ten full service and 31 percent of quick service operators plan to devote more resources to green initiatives this year, and four in ten consumers say they choose restaurants based on their conservation practices.
• Locally sourced food, sustainability, and health and nutrition will be the top trends on restaurant menus this year. Seventy percent of consumers say they are more likely to visit restaurants that offer locally produced food, and nearly three out of four say they are trying to eat healthier in restaurants now than they did two years ago. Technomic Burger Report Technomic Burger Report Prototypical EB Unit : • Approximately 1,900 – 2,500 SF • 50+ Interior Seats • 50/50 Lunch/Dinner Traffic • Dine In and Carry Out Service Prototypical EB Unit
Potomac, MD Prototypical EB Unit Potomac, MD National Harbor, MD
Hans Hess and Ahmad Mahmoud Franchisee National Harbor, MD Kuwait Seef Mall Bahrain Unit Level Staffing
• Staffing: 15 20 Employees Per Location – OPENING: 3 Employees – PEAK TIME: 7 to 10 Employees – CLOSING TIME: 4 Employees Franchisee Support
• Comprehensive Support Throughout All Phases of Restaurant Development and Pre Opening / Opening: – Assistance in developing and managing relationships with project manager, designer, and general contractor – Design review and construction oversight to ensure adherence to brand image and desired corporate outcomes – Project monitoring to ensure on time and on budget delivery – Assistance in hiring general and assistant managers – Pre opening management training at Falls Church, VA location – Assistance in hiring and training kitchen and line staff – In store staff training and operational oversight Franchisee Support
• Ongoing Oversight and Support: – Unannounced secret shopper drop ins – Financial performance monitoring – Assistance in troubleshooting operational issues – Target market / preferred customer profiling – Assistance in developing and distributing targeted promotional materials ElevationElevation Franchise Franchise Ventures: Ventures Franchisee Support
Real FranchiseeFranchisee Construction / Training & Estate Project Ongoing Broker Manager Operations Architect / Engineer
General Contractor Franchisee Support / Partnerships
Real Estate Marketing Programs Construction Point of Sale Systems Design Signage Purchasing & Distribution Equipment Business Consulting Food/Beverage Training Operations Systems Marketing Programs
• Opening Support • Local Store Marketing Programs Traffic Return Frequency Party Size Check Average • Four Walls Marketing • Social Media Online Ordering Uniform Facebook Pages
All new custom Facebook page designs – this template is available to franchisees who build micro pages for their specific locations Social Media Four Walls Marketing
In your store, you, as the owner/operator, must create an overall authentic experience by: – Making the guest’s experience rewarding – Making sure that the guest’s interaction with staff is ALWAYS pleasant – Preparing the food in a consistent way – Presenting the food in an appealing manner – Serving the hottest, freshest food possible – Maintaining consistently clean facilities Market Planning
• Market Analysis – Market Penetration – Competition – Trade Area Strength • Territory Description – Typically along county lines or major traffic arteries – Radius Protection: Suburban vs. Urban What do we look for in a franchisee?
Individuals that want to build and run a professional multi unit restaurant company.
Compatible: Personalities, Goals, Standards
Commitment: This is a long term plan. (20+ years)
Solid: Operations, Business and Financial Where do you want to be in 5 years?
• Business to pay bills? • Passive/mailbox income? How much? • Full time active business? • Legacy? • Build a business to sell at some point? • What sort of income and why? Financing
Financing may be available via third party lenders. Elevation Burger is approved by the SBA Franchise Registry. The SBA Franchise Registry has streamlined eligibility guidelines and operating procedures that will reduce costs and processing time, making the SBA loan application process as fast and easy as possible . FDD Review
FDD Includes: • Company History • Management Experience • Litigation • Trademarks & Patents • Financial Statements • List of Franchisees and Restaurants • Fees and Initial Investment • Franchisor and Franchisee Obligations • Restaurant Earnings Claims • Forms of Franchise and Development Agreements Development Schedule
For franchisees that want to develop and manage a multi unit business: • Exclusive development territory • Number of restaurants to be developed in the territory • Development schedule and opening dates for each restaurant FDD Item 19
Average Sales & Profit: We do not furnish or authorize our salespersons to disclose any oral or written information concerning the actual or potential sales, costs, income or profits of a restaurant except as stated in the FDD. Actual results vary from restaurant to restaurant and upon restaurant ownership we cannot estimate the results of any particular franchisee. Next Steps
1. Headquarter meeting and all parties decide to move forward 2. Letter of intent (LOI) is signed by franchisee and franchisor outlining deal terms 3. Draft executable contracts sent to prospects 4. Franchisees fully execute agreements and send to Elevation Burger with franchise fees 5. Franchisor executes and send copies back to franchisee 6. Access to Elevation resources, assistance with business plans and funding 7. Real estate process begins – local brokers, market & site analysis