FREQUENTLY ASKED QUESTIONS
We often receive questions from people who are interested in owning a Todoroff's Original Coney Island franchise. We have provided the following most common questions, and their respective answers, here for you to review. If you have more questions, feel free to contact us.
What personal and business qualifications does Todoroff's look for in its potential franchisees?
The following qualifications, as well as others, are essential for us to consider you for a Todoroff's franchise:
Strong personal integrity
A challenge–driven personality
An intrinsic, natural desire to succeed
A commitment to success and excellence, and who don't accept failure or second best
And the following professional attributes:
An ambitious, energetic entrepreneurial spirit and a financial motivation to succeed
A demonstrated record of business and personal accomplishment
Strong leadership skills
An ability to manage finances
A commitment to customer service
A personal, professional, and financial commitment to give their best and to excel
A desire and a willingness to become proficient in all aspects of owning and operating a Todoroff's Original Coney Island restaurant business
A commitment to personally devote full time, energy, and best efforts to the management and operation of their franchised business
How much does a Todoroff's franchise restaurant cost?
The actual cost will vary. You may choose to build a new restaurant, or you may elect to remodel an existing building. The costs of land and construction will vary with geographic location.
How much are the franchise fees to own and operate a Todoroff's franchise?
The fees are:
Initial franchise fee: $25,000
Ongoing royalty fee: 5% of gross sales
Local advertising fee: 2% of gross sales that you must spend on advertising in your local area
National advertising fee: 2% of gross sales payable to a national advertising fund
(We currently do not collect this fee.)
What are Todoroff's financial requirements for potential franchisees?
Todoroff's requires candidates, who desire to open one store, to have a $200,000 net worth excluding your primary residence, with a minimum of $100,000 in liquid unencumbered assets like cash. You must also be able to obtain financing to cover the total costs of opening a franchised location.
Will Todoroff's finance the remaining balance of the cost of the franchise?
No. Todoroff's does not provide any financing.
If I don't meet the financial or operational criteria to become a franchisee, can I partner with someone who does?
Yes, however, The Todoroff Group, LLC requires that you own the majority of your business (at least 51%) if that partner is not a participating owner. A franchisee must divest herself or himself of all other active business interests.
May I obtain the funds to purchase a franchise from a relative, friend, associate, or investor?
Yes, however, The Todoroff Group, LLC requires that you own the majority of your business (at least 51%). A franchisee must divest herself or himself of all other active business interests.
Do you need information from the person or persons who are providing financial assistance to me to purchase a franchise?
Yes. The Todoroff Group, LLC requires a complete package from each member of your potential franchise group, including investors.
How much money will I make?
Profitability varies depending upon several factors. These include location, sales, operating costs, and the ability of the franchisee to manage and control their business. We will discuss questions related to profit and loss during a later stage of the selection process. The Todoroff Group, LLC does not make or release earnings claims and it does not authorize anyone (including its employees) to make such claims.
Does Todoroff's select the site where I'll have my franchise?
You will select the area in which you are interested, however, The Todoroff Group, LLC has final approval of the site.
Can I own more than one Todoroff's franchise restaurant?
Yes! We strongly encourage multi–unit ownership and prefer potential franchisees who are interested in multi–unit agreements. However, this is not a pre–requisite to becoming a Todoroff's franchisee.
What are the advantages of owning a franchise restaurant over owning an independent restaurant?
Several factors favor franchise ownership over independent ownership.
- A franchise is a structured package that contains tested processes, procedures, and methods. Every franchisee benefits from accumulated experience and lessons learned. We want you to be successful.
- A well established franchise company extends the benefits of its experience to its franchisees, thus helping them to avoid many mistakes that first–time businesses make.
- Brand Recognition
- Customers trust products and reputations that they are comfortable with. The franchise system builds that trust before you open the doors to your restaurant.
- The franchise model is a way to get into business while still working with a net. The franchisor will be very involved with you initially. As you become more established and experienced, your contact with them, and their oversight, will decline.
- Buying Power
- A franchise company can negotiate acquisition and pricing on a larger scale than a single unit. As such, it can possess greater leverage over a variety of goods and services such as food and advertising to name a few.
What factors should I consider when I investigate a franchise?
The International Franchise Association (IFA) offers the following factors for consideration.
- Compare Franchising To Your Personality
- Which working environment, a franchise or an independent business, would best fit your personality? Do you prefer structure, or do you wish to have control over everything? Despite less control, investing in an existing brand can bring rewards. You'll be taking advantage of other franchisees' experience, name recognition, and built–in customer loyalty. If you can buy into the way that the company does business, then the core relationship will thrive.
- Passion And Compatibility
- You must believe in the idea that you're buying into, otherwise, you won't be effective. Pick an industry or a product that you are passionate about, something that you will enjoy doing everyday.
- Industry Current Growth
- Is the franchise in a growing or a shrinking industry? Can you own multiple units someday, or will you be limited to one or two units because the franchise has already penetrated and saturated the market? Is the industry mature, but the company is a new concept within that industry?
- Long Term Strategy
- How will you exit from this business? Will there be a market when you decide to sell it?
- Obtain Professional Advice
- Hire a lawyer (preferably one who specializes in franchises) and an accountant or financial expert to review the franchise disclosure documents.
- First Hand Observation
- The success and happiness of a system's franchisees are a great indicator of the health of the organization. Some franchise systems (like Todoroff's) will invite you to spend time in one of their restaurants working side–by–side with the staff and management during the evaluation period after submitting a franchise application.
What is an FDD?
A FDD is a Franchise Disclosure Document. The FDD discloses background information on a franchise's history. It covers 23 categories such as litigation history and franchise executive background. The United States Federal Trade Commission requires that a franchisor provide this document to a prospective franchisee before a franchise agreement can be signed.
If you have more questions about Todoroff's franchising, feel free to download a franchise brochure.
Todoroff's® Original Coney Island
America's Coney Island Expert!
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THIS IS NOT A SOLICITATION TO BUY NOR AN OFFER TO SELL FRANCHISES. AN OFFERING CAN ONLY BE MADE BY AN OFFERING CIRCULAR THAT MEETS THE REQUIREMENTS OF THE FEDERAL TRADE COMMISSION AND THE STATES IN WHICH AN OFFERING IS MADE. FRANCHISES WILL BE OFFERED FOR SALE ONLY IN THOSE STATES IN WHICH TODOROFF'S IS REGISTERED TO OFFER FRANCHISES FOR SALE OR IN WHICH REGISTRATION IS NOT REQUIRED. REGISTRATION IN ANY STATE DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE STATE NOR A FINDING BY THE STATE THAT THE INFORMATION PROVIDED IN THIS WEBSITE OR IN A TODOROFF'S OFFERING CIRCULAR IS TRUE, COMPLETE, AND NOT MISLEADING.
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