Frequently Asked Questions
Q. Can I buy a franchise?
A. No. ASWR Franchising Corp. grants franchise rights and awards franchises. Franchise rights are never “sold” and franchisees never “buy” or “own” franchise rights.. We consider the opportunity to join the AllStar team to be a privilege, not a right. A “franchise” is like a driver’s license, if you don’t drive safely or break the rules, your driver’s license can be revoked. Similarly, you are interested in joining the AllStar franchise system because you want to learn from us, benefit from our experience and network, and increase your chances of owning and operating a successful restaurant business. Consistency of product and service between all of our locations is critical to our collective success. We all share a common Brand. In the eyes of the consumer, we are all AllStar. That means we all need to comply equally with our defined operating standards, policies and procedures for everyone’s benefit. “Don’t buy a dog if you want to bark yourself!”
The franchise system is based on a strategic partnership. We get to know you and your capabilities, and you develop an understanding of our philosophies, our values, and our systems. Together, with all of the franchisees in the system, our goal is to capture a disproportionate share of our given foodservice target market.
Q. How do I qualify to be awarded an AllStar franchise?
A. To qualify, an individual must:
- 1. Complete the AllStar Confidential Questionnaire and meet with our development group at the AllStar Home Office.
- 2. Suitable candidates are then provided with our confidential Franchise Disclosure Document and begin their investigations (referred to as a “Due Diligence Process”).
- 3. The Due Diligence Process includes, among other matters, the following:
- a. business planning,
- b. financing,
- c. legal review,
- d. visits with other AllStar franchisees,
- e. psychometric profiles,
- f. credit checks,
- g. criminal record checks,
- h. business and personal references and
- i. a visit to the AllStar Home Office for a "Discovery Day".
- 4. Qualified and approved applicants may be invited to enter into an AllStar franchise agreement no sooner than fifteen (15) days from the date of the disclosure. If serious candidates require more time to complete their due diligence, they will be required to execute a confidentiality agreement and provide a deposit of $5,650.00 to the Franchisor in trust, pending completion of their due diligence within an additional fifteen (15) days. (Refer to the “Steps to Success” herein for further details on the process and timelines.)
The Discovery Day at Home Office provides you with an opportunity to fully determine whether this business opportunity is for you, whether we believe that you share our vision and whether we both have confidence on your ability to succeed.
Q. I do not have a restaurant or foodservice background. Can I be awarded an AllStar franchise?
A. Yes. Although it helps to have specific knowledge of the industry, it is not necessary to be a foodservice professional to successfully operate the business. The “Extraordinary Training” function described herein is specifically designed to educate and train franchisees that do not have significant experience in operating a full-service restaurant such as AllStar Wings & Ribs. The Franchisor will provide an Acting General Manager to the franchisee for the first 3 to 6 months of operations subsequent to the 2 weeks On-Site Training. Salaries and per diems for meals and accommodations (where applicable) are to the account of the franchisee.
Q. Do I need a business background?
A. Obviously any business background is an asset; however, no experience in food service or as a business owner-operator is necessary. The strengths of franchising are that it provides you with an established brand name, a proven and successful operating system, and the benefits of ongoing support. Ongoing support not only comes from Home Office (ASWR Franchising Corp.), but also from the network of AllStar franchisees. We believe that the most powerful business system is one that combines an excited individual owner with a proven system.
Q. Does ASWR Franchising Corp. provide financing?
No. Our Franchise Disclosure Document provides information on the types and nature of financing available as well as the usual financing arrangements enjoyed by our franchisees.
In addition, AllStar enjoys an excellent reputation with Canadian financial institutions. Our franchisee qualification process assists you with the creation of a business plan that contains cash flow projections and other documents required by the banks. As you proceed through the qualification process, we will provide you with the contact information of certain commercial loans officers with various chartered banks in your area that are familiar with the AllStar Franchise System.
Q. Can I be a Silent Partner?
A. Yes. ASWR Franchising Corp. prefers owner/operators. However, we will consider an arrangement in which one shareholder is silent, but your partner must be a working shareholder holding a minimum of 10% of the shares.
Q. Do you help with locating a site and negotiating a lease?
A. Yes. Focused site selection activity begins once the franchise agreement is signed. Using our detailed Site Selection Criteria Checklist, we work closely with you and a real estate agent to develop a short list of three (3) suitable locations in the area(s) available and desired by you. We then work together to select the best location of those available and develop an Offer to Lease.
Q. What if I find an existing restaurant for sale or lease?
A. Yes, occasionally there are some exciting opportunities that arise with existing or former restaurant sites that – for whatever reason – are not or have not done well for their existing or previous owners. Sometimes it’s the right owner in the wrong restaurant concept; or the right restaurant concept with a weak operator. Regardless of the cause, locations of this sort have often proven to work well for our concept while presenting an opportunity for the right AllStar franchisee to cut their initial investment by as much as one-third (⅓) to one-half (½). In our experience, the total refurbishment cost has been as low as $500K to $600K – depending on the specific location. The unencumbered cash investment on your part will therefore be between $250K to $300K (assuming a 1 to 1 cash to debt ratio). Having said this, there are sometimes additional repairs and refurbishments required that cannot be detected during a building inspection (for example, defects found under the floors or behind the walls after the lease has been signed). It is therefore important to always have a contingency reserve available just in case of budget overruns. Regardless, these opportunities require significantly less capital in comparison to opening an AllStar location in a “shell” site.
Q. How soon can I make a profit?
A. We obviously cannot make any guarantees; but our own experience was about one year. The probability of achieving the same degree of success as we have is increased dramatically when franchisees master the AllStar operations and marketing systems and apply them directly.
Q. How long have you been in business?
A. AllStar started in the spring of 2003. We refer you to “The History of AllStar” Section of this package.
Q. Who owns the company?
A. ASWR Franchising Corp. is a privately held, wholly owned Canadian company.
Q. How long is Training?
A. Our training program is eight weeks at Home Office. Initial Training covers the A to Z of running your restaurant. The AllStar Operation Manuals, Employee Handbooks and Training Manuals are easy to read. The application of the operating system is thoroughly covered during training. This includes Staff recruitment and management, Supply Chain Management and Inventory Control, Food Preparation and Presentation, Advertising and Marketing, Financial and Business Administration and all other topics relevant to running your Franchised Business. We also provide Pre and Post Opening site support as well as on-going support. Training is ongoing for everyone in the AllStar System and is accomplished at regional meetings, by on-site visits to individual franchises, newsletters and on-going research and development of the System.
Q. Does operating an AllStar franchise involve the use of a Point of Sale (POS) computer system?
Yes. It is a proven and robust software system that effectively captures key point-of-sale date, labour costs and other metrics that are key to running an efficient operation.
Q. What are my chances for Success?
A. This is a question best left to your own reflections and the counsel of your professional advisors. We exercise every precaution to carefully award franchise rights to those who are well suited to the challenges and opportunities of this business. A large part of these precautions is to ensure that you are in the position to make a well-informed business decision prior to making any final commitment.
Q. Will I have an Exclusive Territory?
A. Yes. AllStar grants each franchisee a “Radius of Protection” representing a territory within which we agree not to grant or establish another AllStar restaurant. This approach allows AllStar Franchisees to host any customer that visits their location while spacing our locations far enough apart that we are not competing against one another.
Q. What locations are available?
A. ASWR Franchising Corp. is accepting applications for franchise locations across Canada. For those who may a little more ambitious or desire a more sophisticated opportunity, the Franchisor also offers multi-unit / area development opportunities in Ontario as well as Area Representative opportunities for larger markets in provinces outside of Ontario. Contact us for more information on the types of opportunities available.
Q. Do I require a lawyer?
A. Yes. Obtaining independent legal advice is a non-negotiable pre-condition to granting franchise rights. We recommend that your contact the Canadian Franchise Association for a list of lawyers specializing in franchise law.
Q. Why do I need to complete a business plan before I become a franchisee?
A. A business plan completed prior to the grant of franchise rights provides the Franchisor with written evidence that you have investigated the franchise opportunity before investing and therefore in the position to make a “well informed business decision” prior to making a commitment. Aside from being simply good business practice, it is also a requirement to any bank financing and otherwise in accordance with the Code of Ethics of the Canadian Franchise Association.
Q. What are the major ingredients for success?
A. The major ingredient is a passion and commitment to excellence in the foodservice business. We provide the major ingredients for the franchise: an excellent name, an operating system and ongoing support and innovative development. However, the major characteristic of any successful business is summarized in the following well-known statement:
“Nothing in the world can take the place of persistence. Talent will not. Nothing is more common than unsuccessful people with talent. Genius will not; unrewarded genius is almost a proverb. Education alone will not: The world is full of educated derelicts. Persistence and determination alone are omnipotent. If you believe in it with all your heart and take action, then it is impossible to fail.”