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I. OBJECTIVE
1. To establish a set of guidelines for creating a pool of potential locations for future outlets
2. To establish a set of guidelines for selecting possible sites for future outlets
II. DEFINITION OF TERMS
1. Area – a zone, vicinity or region of a country
2. Site – a particular location in an area
3. Franchisee – a business operator as defined in the Franchise Agreement
4. Accredited Supplier – an entity that is defined by the company to perform the following functions:
• Design the layout, interior and exterior of the outlet
• Construct the outlet
• Purchase the furniture and fixtures for the outlet
III. GENERAL POLICIES
The Business Development Department shall maintain a Site List (SL), which shall be updated every time a promising site is identified. This is a list of all possible areas or locations where an outlet may be set up.
The SL shall be evaluated and updated based on the following criteria:
1. An outlet has been established in the area or location = Note the progress or status of area or location
2. The market potential of the area or location has diminished substantially = Delete area or location from SL
3. A new business activity is being planned, developed or completed in an area or location = Identify area or location
A feasible site is identified through lease offers presented by Lessors, through trade area analyses conducted by the Franchise Officer or through a Franchise Applicant.
The Franchise Officer shall endorse the identified site to the CEO. The Franchise Officer shall give his initial assessment on the proposed site. The CEO shall decide whether the site shall be considered for an outlet. If the site is to be considered, a detailed market study shall be conducted.
The market study shall be conducted through an ocular survey and a site assessment by the Franchise Officer, if the outlet will be company-owned, or by the Franchise Applicant, if franchisee-owned. It shall include, but not limited to, the following aspects:
1. Site Information
2. Competitors
3. Customer Behavior
4. Leasehold Information
5. Operating Assumptions
The dimension of the location shall also be considered in the assessment. Ranges of the dimensions for each type of outlet shall be as follows:
1. Cart – 4-6 m^2
2. Kiosk – 15-30 m^2
3. Full Store – 40-60 m^2
If there are several site candidates in an area, the Franchise Officer shall perform a site ranking to determine which of the locations will be more favored. Criteria for site ranking shall include but not limited to the following:
1. Customer traffic
2. Outlet layout
3. Outlet visibility
4. Outlet accessibility
5. Competition
6. Parking area
The Franchise Officer shall prepare a summary report after submission of the market study. The report shall be submitted to the CEO for his final approval.
A summary report of disapproved sites shall be filed under “Disapproved”.
The CEO shall inform the Franchise Officer who will be the lessee, either the franchisor or the franchisee.
If the lessee will be the franchisor:
1. The Franchise Officer shall negotiate for a lease term for the approved location. If all terms are favorable, the CEO shall give approval to the Franchise Officer to finalize the site acquisition. If there are terms that are not favorable, the Franchise Officer shall be tasked to re-negotiate the lease terms with the Lessor until an agreement is reached.
2. When the lease terms of the location are settled, the Franchise Officer shall request the Lessor to prepare a Lease Contract (LC) addressed to the CEO.
3. The LC shall be reviewed by an accredited Legal Advisor. All legal issues commented by the Legal Advisor on the LC shall be settled accordingly by the Business Development Department.
4. LC shall be signed by the CEO.
5. The Franchise Officer shall send back the LC to the Lessor for notarization. Upon notarization, the Lessor shall provide GJVI a copy of the LC.
If the lessee will be the franchisee:
1. All negotiations with the Lessor shall be handled by the franchisee. The franchisee shall provide the Franchise Officer with a draft of the LC for legal review.
2. The Franchise Officer shall then forward the draft with comments to the franchisee prior to finalizing the LC.
3. With a finalized LC, the franchisee shall forward a copy of the LC to the Franchise Officer.
The Business Development Department shall file the original/copy of the LO and LC. Finance and Accounting Department shall be furnished a copy of the LC.
The Franchise Officer for a GJVI-leased site or the franchisee for a franchisee-leased site shall be responsible for renewing the LC.
The CEO shall decide if a location that is leased by GJVI is to be operated by the company or a franchisee. The CEO shall inform the Franchise Officer of the outlet’s type of ownership. However, all franchisee-acquired sites shall be a franchise-owned outlet.
In the case of a franchise-owned outlet with GJVI as the lessee, the Franchise Officer shall ask the franchisee to sign a Joint Acknowledgement. The Franchise Officer shall have the Joint Acknowledgement notarized. The Franchise Officer shall file the original Joint Acknowledgement and furnish copies to the franchisee and the Lessor.
The Business Development Department shall be responsible for contracting an accredited supplier to construct the outlet.
IV. PROCEDURE FLOWCHART
Flowchart Title
Site Selection
V. REFERENCE/INTERFACE PROCESS
Document Title
1. Pre-Operating Plan
VI. FORMS AND RECORDS
Form Title
1. Site List (SL)
2. Lease Contract (LC)
3. Lease Offer
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