Investment Opportunity in Food Retail, Portugal Franchise Business

Create a new concept in the Food Retail (Fast Food and others) exclusively with Portuguese products, and then franchise the brand to Europe and around the world.

The idea is based on the creation of a new business concept in Franchise regime that will be a combination of a McDonald's, Hard Rock and a Portuguese Tasca.

Leveraging the worldwide reputation of Portuguese gastronomy and enjoying a large market gap at the level of franchise and / or brands that have a concept in this area, I decided that this would be the right time to create a new brand and then franchise it to other countries.

The idea is to create a brand that will be considered by the Portuguese as a Love Brand and that will be recognized worldwide for the quality of Portuguese cuisine.

In addition to the focus on Portuguese and Portuguese emigrants scattered all over the world, the concept also offers the best option for tourists to know the best of Portuguese cuisine and the best of each region.

The offer is extended and presents the main dishes and specialities of each region of the country, focusing on wine, on sandwiches and snacks, in olive oil, the cheeses and sausages, among others.

The project will be accompanied from the start, with world's largest company in consultancy for franchising, establishing the procedures and methodologies and traces the expansion plan for the various markets. This company has created and manages franchising for clients such as, McDonald's, Subway, Häagen-Dazs, Guinness, Staples, Hallmark, Avis and many others.

The plan is to open 8 spaces (4 Concept Store and 4 Franchise Store) in Portugal in the first 2 year and then expand to European and global level.
The 4 Concept Stores are located in four major cities of Portugal, (Lisbon, Porto, Algarve and Madeira Island) besides being the 4 major centres, are also the 4 major tourist cities of Portugal, receiving every year, global awards that recognize its value, many of them related to the Portuguese cuisine.

At least about 80% of capital are invested in premium real estate.
We also can mount an operation with advantages for investors wishing to enjoy a Gold Visa, which will allow live and travel across Europe. This solution was launched by the Portuguese Government and has been very successful.

Takes advantage of the trend and brand recognition of Portugal and Portuguese products and offers an innovative business concept in the restoration area including Fast-food, Snacks, Restaurant and Shop exclusively with gourmet Portuguese products.
Becoming the only brand with this business concept in the Franchise Market, it tends to become a Love Brand, with public and private recognition.

The first brand to offer the concept will have a large pool to the credibility and reputation of Portuguese products and easily become an ambassador of Portuguese products.

The concept is very innovative and will be easily seen by the various public bodies as an innovative and dynamic design of the products and Portuguese traditions around the world, being able to receive several recognitions, awards, incentives and tax exemptions.

Huge market opportunity due to the inexistence of any franchise brand that is dedicated to Portuguese products.

Huge demand for concepts associated with gastronomy and traditional customs.

Worldwide reputation of Portuguese cuisine.

Worldwide reputation of Portuguese products.

Reputation and international awards related to gastronomy and tourism in Portugal.

Ineffective former entrepreneurs in the Food Retail area that did not fit the market and did not follow the trends that the big franchising brands were creating.

The investment includes property, equipment and all operating costs. The investment base value is directly linked to the cost of creating the Franchising System and the creation of the entire project-based structure. After this investment, the new investments will only be linked to the expansion of the brand to other international markets.

The operational plan is to open in Portugal, 4 spaces Concept Store at the same time the first year and 4 spaces Franchise Store the second year in order to test and adjust franchising procedures and then expand the European and global level with the support of franchising consultant.

The properties of spaces Concept Store are acquired (premium real estate) and in the spaces of Franchise Store may exist leases or purchases as location and availability of funds.

The main indicators, such as gross margin of 65%, one Margin Net up 15% guarantee a very interesting ROI and offer guarantees to the investor, the Payback is 3 to 4 years for the investment base and 8 to 9 years if we include properties.

Besides of the above projections, there are still the values for the Marketing royalties and Base Royalties that will be paid for all the stores to the parent company. These amounts are included in the projections as expenses and are paid to the parent company.

Since the main objective is to create the franchise system, there will be many economies of scale that were not considered in the results and after an initial phase, the same indicators should be even higher.

Investment in Real Estate Premium for 4 Concept Stores, ensures a lower risk rate and offer rates of return higher and higher guarantees. In addition to providing greater security for the project / investment, allows an investment out if the company decides to use traditional banks to refinance the property and pay the investor.

The purchase of real estate guarantees better profitability ratios for the entire project, because, in addition to operational issues, marketing, etc., this investment may also allow a return if we rent floors that are not used.

As exit strategies may be considered three occasions, the first opportunity, when the first expansion phase of the franchise system, where there will be interest from investment funds specialized in the Food Retail, the second opportunity, the time associated with return on sales and finally, the third opportunity at the end of the term of the agreement where the company may use other sources of funding, such as refinancing of the property.