Franchise Information FAQs
What is GTPC looking for in a Franchisee?
Successful franchisees are motivated, energetic individuals who demonstrate a passion for our pies and our pie shops. Food and retail experience is strongly stressed, however is not required if you have other business or management skills that are applicable. Single unit franchisees must have a minimum of $150,000 in liquid capital and a net worth of $500,000.
How much time is involved in operating one of our Pie shops?
Operating one of our pie shops is a very dynamic experience. We manage the production and sales of many products over 4 day-parts (morning, lunch, afternoon, and evening take out). Maintaining product quality levels, customer service standards, and appropriate employee and vendor relations will require nothing less than a full time commitment. The most successful shops will be those operated by dedicated owners who basically live the business. You will be given the tools and support necessary to help manage and operate your business.
Types of franchises available
Single unit franchises are available for qualified franchise candidates.
For franchisees with multiunit food service experience, multiunit territories
are available. Future expansion to multiple units is available for single
unit franchisees in good standing. The franchise model currently being implemented
is a 3,500-4,800 square foot location in strip centers in prime pedestrian
or vehicular corridors of urban and rural centers. Each shop is a full service
production and upscale retail/dining facility. We have standard build out
plans, equipment and furniture specs that we will provide.
Franchise fee
The franchise fee is $25,000, paid in two installments. The initial $5,000 reservation fee holds a territory for 14 days, while our prospective franchisee completes two compatibility profiles. Upon successful completion of the profiles and upon a consensus agreement among GTP Franchising executive staff, the candidate will be awarded a franchise. At that time, the franchisee will sign the franchise agreement and pay the remaining $20,000 of the franchise fee. The franchise agreement terms are for 10 years, renewable for an additional 10 years. The renewal fee is 10% of the then current franchise fee.
Total investment
The total investment required to open a Grand Traverse Pie Company varies
depending upon the size and characteristics of each location. The investment
may range from $450,000 to $678,000. These values are based on historic
data and include franchise fee, leasehold improvements, equipment, furniture,
fixtures, signage, insurance, initial marketing funds, and initial inventory.
Due to ever-changing conditions, local construction procedures and regulations,
there can be no guarantee that costs will not exceed these values.
Financing
GTP Franchising, LLC does not provide any financing, however we have relationships with several lending institutions that we can recommend.
Royalties
Royalties are five percent (5%) of gross sales, excluding sales tax. There is an advertising fund of 1% of gross sales.
Training and support
Training and support begins with a comprehensive training period at a corporate store. During initial training you will become familiar with the history of the Grand Traverse Pie Company, our vision, philosophy, and concept positioning. You will become thoroughly immersed in our operations manual, which details standard operating procedures for all facets of operating and managing a Grand Traverse Pie Company Pie Shop. As a Grand Traverse Pie Company franchisee you will also receive management training which includes training on our POS System, inventory management, labor controls, food cost analysis, and much more. You will be trained in a real world, hands on environment. When your opening week arrives, our experienced training staff will come to your location to assist you through your initial opening period. After you shop has opened, our Franchise Business Consultants will continue to make regular, on-site visits. From P&L management to operations and marketing, our consultants will provide analysis, constructive correction, and will assist you in your efforts to achieve ever greater levels of success.
Earnings
Income level is dependent on several factors unique to each location: sales volume, cost of investment, how well you manage your Pie Shop operation, and how well you control your costs. Because of these variables, there is a range in the amount of profit you might expect. Each community provides a unique situation, which makes it extremely difficult to project income levels. While we cannot guarantee your earnings, we believe that the success of your Pie Shop will depend greatly upon how you monitor and control expenses (food cost, payroll, etc.) and how well you control the quality of product and customer service in your shop on a day-by-day basis. We will provide the tools for the day-by-day operational analysis, we will be available to provide ongoing support and to answer questions and address situations that you will inevitably have as you become more familiar with our concept.
Shop locations
Shop locations are mainly focused on upscale traditional retail centers in attractive pedestrian and/or vehicular corridors. Being located in "Gourmet Sectors" or around complimentary food businesses with adequate parking is preferable. Lease rates will vary depending on economic conditions, competition, space, and the size of your target market. Upon signing the franchise agreement we will provide you with site selection criteria. We will assist you in researching and selecting your location and will provide input as you negotiate your lease. It is a generally accepted industry practice for you to provide us with a list of sites that meet our criteria. Once we have that information, our operations department will analyze and visit those locations to determine the possibility of approval.
Construction
It is often difficult to dictate the exact size of the space since inline center construction varies greatly. GTP Franchising, LLC maintains control over sight plans and shop layout. This is done to maintain quality, consistent design, and also helps maintain operational efficiencies. Once you have been awarded a franchise, GTP Franchising will supply you with one set of plans that generally relates to the type of unit that you will be opening. These are not your final blueprints, rather, they serve as a guide to the general type of construction and style requirements for a Grand Traverse Pie Company location. It is important that we maintain this look in any given space. You may choose to use our approved architectural firm, which may enable you to realize savings on the costs associated with a new architect's learning curve. Our operations department will work with you every step of the way to ensure a smooth construction and pre-opening phase.
