Where are the national offices for Retail Food Group Located?

Retail Food Group maintains its national office at RFG House, 26 Railway Street, Southport on Queensland’s Gold Coast.

Additional State offices are maintained at 9 Ferngrove Place, South Granville in Sydney and Suites 2 & 3, 61-63 Camberwell Road, Hawthorn East in Melbourne.

Retail Food Group maintains its New Zealand national office at Level 1, 12-14 Walls Road, Penrose, Auckland.

How many outlets are operated under RFG’s brands?

As at 23 January 2008, there was a total of:

• 302 Donut King outlets established throughout Australia
  
• 351 Michel’s Patisserie outlets with 345 outlets in Australia and 6 outlets in New Zealand
  
• 328 Brumby’s Bakeries outlets with 305 outlets in Australia and 23 outlets in New Zealand
  
• 69 bb’s cafe outlets with 46 outlets in Australia and 23 outlets in New Zealand.
  

Franchise System	QLD	NSW  & ACT	VIC	SA	WA	NT	TAS
Donut King	91	109	65	13	13	3	8
Michel’s Patisserie	57	197	56	24	11	-	-
Brumby’s Bakeries	129	35	69	15	49	8	-
bb’s cafe	25	5	7	8	-	1	-
Totals	302	346	197	60	73	12	8

What is the history of Donut King?

Donut King started life in 1981 as a small family operation in Sydney. The Donut King business system was established in Australia in 1989 and has been operating as a franchise system since 1991. The Franchisor is currently operating the Donut King system in Australia and New Zealand.

What are the growth plans for Donut King?

The Franchisor’s objective is to establish stores throughout Australia and New Zealand in accordance with its planned growth objectives.

Who is the Franchisor?

Donut King Australia Pty Ltd, a company incorporated in Australia, has been the Franchisor in Australia since 1991. RFG Management Pty Ltd, trading under the name Retail Food Group Australia, manages the system on behalf of the Franchisor. Both the Franchisor and RFG maintain their registered office and place of business at 26 Railway St., Southport, QLD, 4215, Australia.

What is the total cost of establishing a Donut King outlet?

The total cost of establishing a new store varies from $230,000 to $347,000 +GST depending on
the location and fit out. Accurate estimates will be established and provided to you prior to the
signing of any agreement. The total cost will include: All equipment, the entire store fit out, your
initial franchise fee, your training fee, your opening stock and initial promotional campaign.

How much cash will I need to purchase a Donut King store?

The financial ratios vary according to your personal circumstances, however, the following ‘Rule of Thumb’ percentages can be used for initial assessment.
a. You will require a minimum approximately 25% of the total franchise cost.
b. You will (if approved) be able to borrow up to 50% of the total franchise cost on the value of business.
c. You will be required to demonstrate your ability to service all borrowings.

After purchasing a Donut King store, what ongoing fees are required?

A Franchise Service Fee equal to 7% of your total gross sales + GST is payable. This fee covers the proven, and constantly improving, business operating systems, ongoing product development and support services you will benefit from. A Marketing Levy equal to 3% of your total gross sales + GST is payable into an independently audited marketing fund. This fund is used to collectively promote increased customer awareness and provide each store with promotional material and ongoing marketing services which will ensure your business is able to constantly attract new customers, increase average dollar sales and the frequency of purchase.

Will I have to pay a deposit? If so, when and under what circumstances, would I lose my deposit or any part of it?

Deposit monies are refunded if the Franchisee’s application is not approved. The Franchisor may, however, deduct from the deposit its reasonable expenses incurred in considering the franchisee’s/prospective franchisee’s  application for Franchise. See page 17 of the Disclosure Document for more detail.

What Initial Franchise Fees will I be required to pay?

All fees are included in your store cost and include: $55,000 - Initial Franchise Fee which includes GST (which can be claimed back) $11,000 - Training Fee which includes GST (which can be claimed back) $6,600 - Initial Marketing Fee which includes GST (which can be claimed back)

How much working capital will I require?

We recommend all franchisees budget between $30,000 - $50,000 for their first year’s trading.

Do you have any finance schemes to assist new owners?

The Donut King Business System has been awarded ‘Preferred Status’ by both the ANZ and Westpac Banks. This ‘Preferred Status’ means that purchasers who receive bank approval are able to borrow up to 50% of the total purchase price on the value of the business. The Franchisor does not offer finance to applicants.

What details can you provide on gross profit, expense items and turnover that will help me prepare budgets?

It is inappropriate for us to make any representation to you on the potential level of sales and profitability on any existing or new store. We will provide Proforma budget layouts so you can test and budget for the various levels of sales you decide are appropriate.

Where are Donut King stores currently located?

As the numbers are growing annually we can either email you a list or you can retrieve this information from your States telephone directory. The Disclosure Document also provides you with this list of all existing Donut King stores.