You should give a business rationale, together with the required analysis to justify the commissioning of this project. A full business case should be
presented, containing a sufficient critique of the potential project to allow a management decision to be made. Your report should contain an evaluation of
the project management methods required for the project.
-Use and evaluate tools, technologies and methods of project management
-Demonstare reporting, analyzing and team working skills, in relation to studying project management scenarios.
Journal that you may used:
– Harvard Business Review
– International Journal of Project Management.
You must include:
1. Project description –changes to organization
2. Technologies / Work Procedures
3. Implementation
However I have done for number 1-3 and I would need you to help me to do for the cost and timescales and benefits and timescales.
4. Cost and timescales
5. Benefits and timescales.
Rmb, the company that I am using is a franchising company which is burger king.
You may continue from this to do number 4 and 5. YOU ONLY NEED TO DO NUMBER 4 AND 5.
Executive Summary
Introduction
This project conducted for Asia Franchise Company on Burger King. Asia Franchise Company is a company which specialize on franchising business and company
is currently monitoring two franchise outlets of Mcdonalds and Pizza Hut. Asia Franchise Company is very keen to move on next step to franchise Burger King
in Singapore. Burger started operating in Singapore since 1982 and there are more than 35 restaurants Island wide in Singapore nowadays. Moreover, Burger
King is the world’s second largest fast food hamburger chain with more than 12,000 restaurants in all over 50 states and in 73 countries. The reason Burger
King is doing successfully in fast food chain is the result of a tradition of leadership within the quick service restaurant industry in areas such as
product innovation and development, restaurant operations, décor, service, marketing and advertising. So, Burger King is one of the most attractive
businesses for Asia Franchise Company to franchise.
Project description
The purpose of this project is to identify the main areas of whole project including project plan, project objectives in terms of deliverables, time and
quality as well as the project resources in terms of budget, people, dependencies, risks, and contingencies and how to complete this project successfully.
Project Scope
This project will cover the main areas such as project description, changes to company, implementation of project, cost and timescales, benefit and
timescales, risks and contingencies plans, other aspects in terms of social and environment, net position according to tangible and intangible factors, a
diagram of the project as a system and then the recommendation. The project team will take at least 12 months to accomplish the project until company can
actually start running the restaurant.
Changes to Company
There will be some advantages and disadvantages towards company because of new franchise on Burger King.
Advantages to the company
• Company is buying the rights to sell a product that is already established. This makes it less risky than setting up something brand new as customers are
already aware of the brand.
• Company gets the support of national marketing which a small business would unlikely be able to afford. In this case of the larger brands they may
already have customers waiting for their doors to open.
• Company gets training and HQ support from the franchisor; this may be essential if the franchisee is new to running their own business and has little
experience or business knowledge.
• Company will be able to choose and open a business that is of interest to them. If they like eating and dining out then perhaps a restaurant franchise
will suit them. If they like a quicker pace then maybe a fast food outlet would be more suitable according to the country, economic situation, etc.
Disadvantages to the company
• High entry cost. It is often more expensive to start a franchise than an independent business. You can open a burger bar for the fraction of the cost of
a Burger King franchise.
• In some cases the franchisor may have little interest in their franchisee’s success and may be more interested in just collecting the fee.
• Company can only sell the products of the franchise, and they may be tied into a strict set of instructions about how they should trade.
• Company may have to move to a different location if the franchise opportunities in their area have already been taken. This is often the case with the
much larger franchises.
• Company have to find or build the right location, hire and train staff and install equipment. This may be risky for company in order to be able to cover
the fees that they have to pay to Burger King.
• Company requires buying certain items from the franchisor like computer systems and software with high cost in order to fulfil the standards of the
franchisor.
Work procedures
Burger King started franchising operations internationally in 1954 based on the successful marketing of the signature Whopper hamburger. Decades later, the
fast food empire numbers more than 12,000 franchises in the United States and other foreign countries. BK entices franchisees with a cafeteria-type menu of
operations and store-management training, including financial, constructor and store-decor advisers. Owners also have access to a purchasing network for
food and supplies. BK franchise opportunities have the option of corporate restaurants requiring a significant investment in multiple locations or
purchasing an existing franchise with a single location.
Steps to become a BURGER KING Franchisee
New Franchise Procedures
Step 1
Collect and organize the financial portfolio information to qualify for a franchise and a bank loan. The Burger King Corporation required potential
franchisees to have a minimum of US$1.5 million net worth and US$500,000 in liquid assets to qualify for an application in 2012.
Step 2
Do a Research for lenders to determine the best fit for franchise loan. Shop loans specifically for fast food restaurants. Lenders make loans for various
types of franchises, but not all lend for restaurant operations.
Step 3
Submit paperwork and an application to a lender to prequalify for a franchise loan.
Step 4
Take the online qualifying questionnaire on the Burger King franchise website.
Step 5
Contact the Burger King corporate representative charged with supervising the state of our prospective franchise. Locate the name of the representative
from listings on the BK franchise website.
Step 6
Evaluate Burger King’s corporate Uniform Franchise Offering Circular and a copy of the franchise disclosure. Federal law requires the disclosure as part of
the business offering.
Step 7
Decide on a building site for our franchise with the Burger King state representative or propose your own location for the restaurant on land we currently
own.
Step 8
Select the contract options for our restaurant and ask the Burger King state representative to write the franchise agreements incorporating these terms.
Options include advanced training, special decorative features for our restaurant and types of equipment.
Step 9
Hire an attorney with a specialty in franchise law to review the Uniform Franchise Offering Circular, franchise agreement and disclosure document, if it is
required in your state. The UFOC and disclosure, regulated under the Federal Trade Commission, provide useful financial information about our investment
with Burger King, including the number of franchises in the geographic region of our new store and any BK franchise failures.
Step 10
Review the franchise termination clause and restaurant resale clauses in the franchise agreement and make sure the language matches our verbal
conversations with the franchiser.
Step 11
Meet with your lender and arrange the franchise loan. The lender requires information about the franchise and may also need to evaluate additional
financial documents to confirm your economic status since the prequalifying loan interview.
Step 12
Sign the franchise agreement and paperwork and deposit our cash as required under the franchise agreement.
The cost for the investment in Burger King
Depending on the type of restaurant and the investment model, the total amount invested by a franchisee can be between £250k and £800k (not including the
cost of land in a free standing location). The total investments for the 3 main types of restaurants are as follows:
• A 700 sqft food court kiosk starts at £250K plus $40K franchise fee
• A 1000 sqft high street location starts at £450K plus $40K franchise fee
• A 1500 sqft Drive Thru starts at £550K plus $40k franchise fee
The franchisee will need to contribute at least 40% of the capital with business loans funding the rest. We are looking for partners to open a number of
units therefore it is a minimum requirement that all successful applicants can show that they have a minimum of £250k in the form of liquid or quickly
realizable assets ie cash or shares/stocks.
Franchise & royalty fees of Burger King
Currently when a franchise agreement is concluded a single fee of US$40 000 per restaurant is payable. Additionally, the franchisee pays 5% of total sales
(plus VAT where applicable) in the form of a royalty contribution, and an additional 5% of total sales (plus VAT where applicable) as a contribution to the
national marketing fund.
Franchise agreement and Training Program
The BURGER KING® franchise agreement will last in the standard term which is 20 years. And the period between submitting an application and opening a new
restaurant will be approximately 12 months on average. However, this depends on the individual availability of the applicant, geographical flexibility, and
timings in respect of the property negotiations.
The new franchisee will have to attend one of our dedicated training centers in the UK to complete the 15 week training program Training is provided free
of charge however you will need to cover travel and accommodation charges if applicable.
Implementation
1. FRANCHISEE CONTACTS FRANCHISE BUSINESS CONSULTANT-Franchise Business Consultant (FBC) then notifies Construction Project Manager (CPM)
2. CPM COORDINATES RESTAURANT VISIT WITH FBC & FRANCHISEE
3. FRANCHISEE RESEARCHES SIGNAGE & SITE PLAN REQUIREMENTS OF LOCAL MUNICIPALITIES
• Franchisee should research with the local municipalities, property owner, landlord and any other third parties any regulations, restrictions or
requirements (including permits) for site plans and signs. Knowing from the start whether plans will need to be drawn by an architect will help Franchisee
better plan and execute the timeline. In addition, it is helpful to learn the sign regulations ahead of time to more effectively prepare the sign drawings.
The sign regulations can sometimes affect Franchisee’s choice of remodel scheme and elements to complete. A good sign company will include research in its
costs and provide Franchisee an acceptable sign package for review and approval.
4. REVIEW/COMPLETE CHECKLIST
• Franchisee, FBC and CPM visit site and complete the Checklist. Franchisee, the Operating Principal or
5. SUBMIT BUSINESS PROPORSAL TO FRANCHISE REMODEL COMMITTEE
• If Franchisee will not do any minimum required item, Franchisee should attach an explanation of why Franchisee will not do the required item.
6. Enhancement business proposal.
7. FRANCHISEE REQUESTS EQUIPMENT TEMPLATE FROM HED
• Franchisee contacts HED to request the information applicable to purchase the equipment and materials.
8. REVIEW OF LEASES & COVENANTS
9. REQUEST CONSTRUCTION BIDS FROM GENERAL CONTRACTORS
10. SELECT GENERAL CONTRACTOR FOR INTERIOR DESIGN AFTER APPROVAL OF CONTRACT FROM FRANCHISOR.
11. ESTIMATE PROJECT COSTS
12. SECURE FUNDING FOR PROJECT – (IF APPLICABLE)
• When a commitment from a financing company has been made to Franchisee, it is important to get a letter from the financing institution stating that
Franchisee has been approved for financing and the amount for which approval was given.
13. Review final business project proposal before summiting
14. SUBMIT FINAL PLANS FOR PERMIT APPROVAL
15. Negotiate with franchisor for software installation and cooking machine
16. COMPLIANCE CHECK COMPLETED BY FRANCHISEE, FBC AND CPM and complete the project.
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