For Franchise
Information

Contact: Michael
Stadnicki
Chicago Franchise
Systems, Inc.

(708)444-4411
Email Us

FAQ's

WE BELIEVE Al's Beef represent a truly remarkable business opportunity. Our system is as refined as our tremendously appealing and award winning products.

The answers contained in this page will assist you in making an informed decision concerning an Al's Beef Franchise purchase.

PLEASE BE ADVISED:

The information contained in this page is not meant to replace the information in our Franchise Offering Circular. We will provide this document to you at our first meeting and interview. You should fully examine our Franchise Offering Circular with your family, attorney and accountant prior to entering into a franchise agreement.

What is the Al's Beef business?

The Al's Beef name has been a household word since 1938 throughout the Chicagoland area. The Al's Beef products have been continuously awarded the highest honors the Chicagoland food polls can offer. With an outstanding product line and a huge perceived value by the consumers, it is our belief that Al's Beef not only offers great products but also a great business system and franchise opportunity.

What kind of Franchise is available?

Initially, we offer individual Franchises to persons willing to be trained in a system of operation that has been proven throughout the years.

What is your franchise fee?

The initial franchise fee for an individual location is $30,000 that is paid at the time the Franchise Agreement is signed.

What is the range of the total investment required to obtain an individual Al's Beef Franchise?

The total investment required to open an Al's Beef Franchise in a leased premises is in the range of $390,000 to $550,000. The investment in the business (not including real estate) is composed of the equipment package, computers, construction, supplies, inventory, signage, leasehold improvements, and additional items you will need to purchase or lease. An adequate amount of working capital is also required, typically funds necessary for the first three months of operation and grand opening.

What financial qualifications must I personally meet to qualify for a Franchise?

The costs below represent minimum requirements and you should be prepared for additional costs depending on each individual location. An average unit is between 1,800 and 2,400 square feet and they are typically located in strip centers.

Typically, you must be able to show a minimum net worth of $400,000 and approximately $150,000 in cash, liquid assets plus available financing for the balance of the project. Many banks will require additional collateral to make a loan for the purpose of opening a restaurant.

What are some additional requirements of a Franchisee?

Additional franchisee qualifications and requirements include:

The Franchisee is typically the owner and operator of the restaurant. We look to you to be the one who will represent us to the public.

The Restaurant Operator must live in the immediate area to be developed throughout the term of the franchise agreement.

The Restaurant Operator should have prior fast food and general management experience relative to the number of units to be developed.

A Personal Financial Statement and resume must be submitted for each partner of the proposed franchise; a resume must be submitted for the prospective Restaurant Operator

The prospective franchisee must submit a Business Plan to us which sets forth the following:

Structure of the business (sole proprietorship, partnership, corporation, limited liability company, etc.) and, if known, name of business, business checking account and loan information;

Desired area(s) to develop, as well as the desired number of units; and

Growth plan, which should include information such as specific source(s) of capital, methods of recruiting, management structure and accounting systems to be used.

**THESE FRANCHISEE REQUIREMENTS DO NOT CONSTITUTE AN OFFER TO AWARD A FRANCHISE. SUCH AN OFFER MAY BE MADE ONLY AFTER THE ISSUANCE OF A WRITTEN OFFERING CIRCULAR**

Is the price for equipment fixed or can I purchase equipment on my own?

The equipment package used by Al's Beef is very specific to our needs. Many years of research and development have gone into designing a package that works with optimum results. The equipment package must be purchased through Al's Beef or from sources that have been approved by Al's Beef.

Does Al's Beef finance my Franchise?

No. At this time Al's Beef does not offer a financing package for Franchisees; however, Al's Beef will assist you with any information reasonably requested by your financing sources after you have become a franchisee.

What geographic area is available for my Franchise?

Due to the rapid development and strong interest in the Al's Beef Franchise business, available geographic areas change quickly. We therefore cannot accurately indicate the availability of any particular area. Once you have completed and submitted the Application and Evaluation Form in which you have indicated your geographical preferences, we will communicate the availability of specific sites.

As of today, we are looking for developers of 1 or more restaurants in the following areas: Illinois, Wisconsin, Indiana, Michigan, Georgia and Kentucky.

How do I select a specific site for my Franchise?

We are fully versed in the site requirements for an Al's Beef. Once you have been accepted to sign a Franchise Agreement and the initial franchise fees have been paid, a site worksheet will be completed by Al's Beef and assigned to a real estate reviewer. We will take various trips with you to sites that would best suit the Al's Beef business and concept. We will supply you with standard site floor plans (not architectural plans) and specifications together with advice and consultation concerning the construction of the new site. Any modifications for non-standard facilities will require Al's Beef approval and must be paid for by the Franchisee.

How long will my Franchise last?

The Franchise Agreement is for a term of ten (10) years, with an option to renew for an additional ten (10) years. The renewal will be based on the then current Franchise terms that will include among other things, the payment of a renewal fee of one half of the then current Franchise fee. It must be remembered, however, that along with many other factors, a renewal will also be based on the length of the existing lease on the premises.

What will be the size and operating format of my Al's Beef store?

Minimally, the store will be between 1,800 sq. ft. and 2,400 sq. ft., with an optimum space allocation of 2,200 sq. ft. There will be seating in selected stores which will require a minimal store size in excess of 2,000 sq. ft. This facility will be located most likely in a strip center conveniently located to the homes of a particular demographic consumer base; however, it may be located in a free standing building or shopping mall. In any case, the location will depend upon availability, market conditions, competition and our proven experience in site selection that is best suited for our Franchise concept. It should be noted that locations larger than 2,400 square feet will cost significantly more than the estimates discussed herein.

What is the continuing royalty fee?

Five percent (5%) of gross sales, exclusive of any sales tax, payable weekly.

Are there other ongoing fees I must pay?

Yes. Each week you will also contribute two percent (2%) of your gross sales, exclusive of sales tax, to the general Al's Beef Advertising Fund.

What hours will my Al's Beef Franchise be open?

The minimum hours of operation are 10:30 a.m. to 10:00 p.m. Monday through Thursday, 10:30 a.m. to 11:00 p.m. on Friday and Saturday and 10:30 a.m. to 9:00 p.m. on Sunday. Depending on the location of a particular site, the Franchisee may extend these hours with approval from Al's Beef.

What training will be provided by Al's Beef?

Al's Beef requires that prior to commencement of your franchised business, you must attend training sessions taught at Al's Beef corporate offices and/or at an existing franchise location. You must pay for all travel, lodging and meals during the training course. The fundamentals of our restaurant and franchise operations are taught. The training has been designed to cover all the vital areas you will need to master to become a successful Franchise owner.
Included in your training are:


A step-by-step use and understanding of the operations manual;

Food handling, safety and quality control;

Understanding the Al's Beef products;

Equipment layout, use and maintenance;

Inventory control methods;

Bookkeeping and accounting including a detailed training in the use of our required POS computer system and it's reporting capabilities;

Advertising and promotion methods;

Personnel policies and training requirements;

Hands on training in an existing store.

Comprehensive testing to ascertain your competency and knowledge of the taught materials.


What type of opening and ongoing assistance do I receive from Al's Beef?

An experienced operational specialist will be present for the first ten (10) days of operation. Our trained staff will be with you on an ongoing basis to assure a smooth start and continuing support. The Al's Beef Manual of Operations will continually be revised to impart new techniques and variations that Al's Beef has approved for store operations. Ongoing support will be handled by your local Development Agent.

Does the Al's Beef system include forms and business aids for product purchasing and inventory control?

Yes. We have devised a highly structured system that includes all of the business aids and forms necessary to fulfill your business requirements.

Once I have made the decision to become an Al's Beef Franchisee, how long before I'm in business?

Finding a location is the primary determining factor. Once a mutually agreed upon site has been secured and barring any unforeseen delays, training, construction and the supplying of your business should take approximately one hundred and fifty (150) days.

I am ready to proceed to the next step! What should I do?

The granting of an Al's Beef Franchise is not taken lightly. We will make a determination of each candidate's compatibility with our system on a one-on-one basis. The next step is to fill out the “Contact US” section on our website; a franchise specialist will call you to discuss the next steps. Fill out the form in our Apply Now section.



© 2008 Chicago Beef, Inc. All rights reserved.