Kernels Extraordinary Popcorn originated in Canada and is now in its 20th exciting year internationally, and we are currently in our 7th year of operations here in Australia. In the last 18 months, our business has experienced extraordinary growth, which is set to continue. We are becoming one of Australia's best and most exciting Franchise businesses. Kernels is revolutionising retail sales and service like no other business before us and are the No.1 Popcorn Franchise in the World! We couple our technology and expert business management to closely monitor our Franchisees with exceptional support! Our commitment to providing excellence in customer service combined with our stringent quality control ensures that we not only have the best Popcorn the world has ever tasted, but that our customers keep coming back for more!! Do you have what it takes to share in our passion & success? If you are interested in a Kernels franchise, please review the information contained in this page carefully. We are only looking for the right partners who share in our passion and desire to remain the "Best Popcorn franchise in the World"!   1. WHAT QUALIFICATIONS DO I NEED TO BECOME A FRANCHISEE? Kernels is a business that requires and responds to the personal input and attention of the owner. It is essential that the franchisee becomes personally involved in every facet of the business. You should be willing and capable of performing all sales, production and other functions required on a daily basis. The demands on you personally can be minimised by your ability to attract, motivate and retain capable employees. Franchisee Requirements (not limited to this list): A stable financial rating, Strong personality and salesmanship abilities, Good inter personal skills, Highly motivated, Great positive "can do" attitude! No special education or prior experience in our type of business is required for a person to be considered as a possible Kernels Popcorn Limited franchise. This is for your benefit as much as ours, for we can set you up in business, teach you our methods of operation and provide you with continuous advice but we cannot do your work and we cannot operate your business. That responsibility is solely yours. PLEASE NOTE THAT IT IS OUR CONSIDERED OPINION THAT A STRONG, PERSONAL INVOLVEMENT OF THE FRANCHISEE IN THE MANAGEMENT OF THE STORE CAN (AND IT USUALLY DOES) HAVE A SIGNIFICANT AND POSITIVE EFFECT ON THE GROSS SALES GENERATED, AND THE INCOME NETTED. 2. DO YOU GUARANTEE THAT I WILL MAKE A LOT OF MONEY? The answer to this is quite simple, the answer is "no". We obviously hope that you will do well but this is not a "get-rich quick" scheme. In all business ventures there are elements of risk. We are confident, however, that being associated with us in the popcorn business will reduce the element of risk and will enhance your opportunity for success. Of course, much of anyone's success depends upon hard work, something for which there is no substitute. 3. WHAT DOES THE FRANCHISE FEE COVER? The Franchise Fee gives the franchisee the right to own and operate a Kernels Popcorn kiosk/store from a specified location using our business systems and the trademarks associated therewith. The said fee also covers the various costs and expenses incurred by us in setting up the business operations of a franchisee. The costs and expenses relate among other things to over-seeing construction; training the franchisee both at one of our locations and at his/her location prior to the opening of his/her business; assisting with arranging for initial inventory purchases; and generally providing whatever assistance is required to open the franchisee's business. The franchise fee is included in the turnkey price. 4. WHAT DOES THE ROYALTY FEE COVER? The royalty fee payable by a franchisee covers a number of continuing services and benefits provided by us after the initial opening by the franchisee of his/her outlet for business and this includes: Continuing supervision, Continuing business advice on how to operate the franchise, Consult with us regarding marketing strategies, Availability of new product and flavours, Availability of new operating policies and procedures, Store standards monitoring, General business coaching to help your bottom line. 5. CAN THE FRANCHISE AGREEMENT BE TERMINATED? The franchise is your business. As long as you live up to the terms of our agreement, your franchise will continue for it's full term and thereafter subject to the provisions of the franchise agreement, you have the right to renew the franchise for a period equal to the lease renewal term (provided that Kernels is successful in negotiating a new lease term). The provisions of the agreement are for your benefit as well as ours as it sets out in comprehensive detail what each of our obligations are. You are advised to make certain that you retain professional advice (e.g. lawyers, accountants, business advisers) to inform you so that you will understand all of the terms of the agreement and your obligations thereunder. 6. CAN I SELL MY FRANCHISE? Yes, a franchisee has the right to sell the franchise for whatever profit or gain he/she may be able to obtain subject to certain provisions/fees set forth in the franchise agreement, including our right to match any offer to purchase which may be made. If we choose not to exercise this right, we will then advise as to whether the new proposed owner is acceptable as the new franchisee. This approval allows us to determine among other things whether or not the proposed new owner appears to be capable of operating the business. In any proposed sale by a franchisee, we will do our best to cooperate and of course, any approval will not be unreasonably withheld. Fees related to the sale of a franchise are outlined in the franchise agreement. 7. WHAT TYPE OF ADVERTISING WILL THERE BE? As it is intended to locate generally in major shopping centres and/or enclosed complexes where the centres themselves are an attraction, it is intended that a franchisee's advertising obligation locally be subject only to the provisions of the lease. Subject to our right to approve of local advertising and/or promotions, the franchisee may advertise and/or promote as he/she wishes. We also require a franchisee to contribute one percent (1%) of his/her annual revenue towards national advertising and promotions. Also, a franchisee will be required to contribute annually an amount equal to one percent (1%) of his/her gross revenue towards an Educational Fund. The said Fund shall be used for the direct and indirect benefit of franchisees and will cover matters such as research and development of new products, conducting up-dated training programs, preparation of printed material etc. 8. WHAT'S THE PRICE OF A KERNELS STORE/KIOSK? Kernels Stores/Kiosks are on average approximately 18.sq.m. to 25.sq.m. They are situated in large premier regional shopping centres. The turnkey investment for a Store/Kiosk ranges from $200,000.00 to $300,000.00 depending on location, size and fitout. This includes a $45,000.00 franchise fee. (Price does not include 10% GST) 9. DO YOU NEGOTIATE THE LEASE OR DO I HAVE TO? Kernels Australia Pty Ltd. (T/as Kernels Popcorn) will negotiate and hold the head lease on the store/kiosk locations on your behalf or if you prefer it will allow you to hold the lease in your name. There is a site procurement fee of $5,000.00, which is included in the turnkey investment. 10. IS IT DIFFICULT TO POP POPCORN? Actually, popping popcorn is easy, however making over 35 varieties and flavours of popcorn and chocolate confections takes talent. Talent to juggle the different tasks required running the Store. The franchisee wears many hats simultaneously at any given time. In your store you are a chef, a merchandiser, a salesperson, a caretaker, an accountant, a purchaser, a mentor, to name a few job descriptions. You must have the ability to perform all of these duties well. 11. CAN A KERNELS FRANCHISEE OWN MORE THAN ONE KIOSK OR STORE? Yes! Many franchisees in Canada are multiple location owners. However, the prerequisite of being an owner/operator still applies. The franchisee must demonstrate how they will operate more than one location and still be active and hands-on in all Kiosks or Stores. An existing franchisee must also have a proven track record of at least 12 months operating one store before multiple stores licenses will be granted. Many of the Canadian franchisees get the whole family involved in running the Kiosks or Stores. 12. WHAT IS THE EARNING POTENTIAL OF THE KERNELS KIOSK OR STORE? Due to factors such as franchisees' management skills, location factors, overhead costs, etc., which will all have an influence on the earning potential of a store, the franchisor does not guarantee that any new kiosk and/or store will reach any prescribed levels of sales and/or cash flows.   WHERE DO I GO FROM HERE? If you are interested in proceeding further with a franchise, please download and complete the Application Form and forward to our office. Provided there is mutual interest, we will arrange for a personal meeting. The initial meeting will then be followed up with additional meetings involving Head Office personnel. Once you been approved as a suitable franchisee, you will be required to deposit a refundable amount of $5,000.00 into our account, at which point, you will then be sent the disclosure document and franchisee agreement. You will then be required to carry out your due diligence for a further 14 days along with advice from your solicitor and accountant. At this point, your negotiated location will remain available to you for this period. Once the 14 days have passed, if you are ready to proceed with the purchase of a Kernels Extraordinary Popcorn franchise, you will be required to pay the franchise fee of $45,000.00 and to sign and return all documentation. Once that ball has been bounced, our designers will proceed with perspectives, plans and full documentation ready for the construction of your new store. During the construction of your new store, you, our new franchisee and your partners, associates etc. will be commencing your three week long training program, and on your way to becoming an expert "Popologist" and to becoming the newest member of the Kernels Extraordinary Popcorn Family.   The Appication Form is available for download in two formats. To download in Microsoft® Word format (file size: 92KB), click here. This form needs updating To download in PDF format (file size: 145KB), click here. This form needs updating Once you have completed the application form, please post it to: Kernels Popcorn Australia - 13 Saggart Field Road, MINTO, NSW 2566.

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