Mary Pauline Salon Group
Franchise Kit
To Our Prospective Franchisee: Thank you Sir/ Madam for your interest in having a business partnership with us! The Mary Pauline Salon Group is one of the fastestgrowing beauty and hair salons in Metro Manila. We provide our clients with a high quality beauty enhancement experience based on our creative team’s in depth training, creativity and professional approach. The enclosed package is designed to provide you with an introduction to Mary Pauline Salon operations and our franchising system. You will find information about our background, structure and approach to franchising. As a franchise, you will have opportunity to take advantage of our hard work, experience and proven system in order to create a successful business. Our franchising program relies on teamwork that enables qualified and capable business people to participate as a Mary Pauline Salon Group team member and to enjoy the benefits of our promising market. The Mary Pauline Salon Group is an exciting and progressive company, which has a strong focus on training and professional development, quality equipment and products, and providing a high level of customer service. In just five years, we have built a solid reputation and recognized brand by having a fantastic team of beauty and hair experts and by using the best techniques, equipment and products.
How the Mary Pauline Salon Group Franchising Works? As a franchisee, you will be participating as part of team that works within a proven system. YOU ARE NOT ON YOUR OWN. You will be fully supported by our system, knowledge, advice and assistance. A few of the features of a Mary Pauline Salon Group Franchise are the following: ● The franchise is an independent business, which shares expertise, knowledge and experience gained by it. ● We allow our franchisee to use our name, logo and other support materials within the scope of our franchise agreement and operations manual. ● A Franchise Fee is required in order to become a part of the team. There is NO ROYALTY FEE for the WHOLE DURATION OF THE FRANCHISE. ● The very affordable franchise package includes a feasibility study, the hiring and training of personnel, management training, continuous training for the next five years, management training, accounting systems as well as assistance in site location. An operation manual will also be provided as well on the sixth (6th) month of operation. ● An Agreement is usually good for 5 years with an option to renew. ● We will help you in locating prospective sites and in assessing the opportunities in all possible locations. Ultimately, you will have the final choice on where you want to establish your business. ● You will receive initial training, assistance in setting up your salon, promotion and marketing programs as well as ongoing coordination of the products and system.
LETTER OF INTENT Registration Date: THE FRANCHISE MANAGER/ GENERAL MANAGER 54 DC Square Building, Timog Avenue, Quezon City This is to express my interest n the Mary Pauline Salon Group Franchise System I would like to inquire the details of this business opportunity by attending the “Mary Pauline Salon Group Franchise Briefing” scheduled by your good office at the soonest, and most convenient time. Outlined below are other pertinent details which the franchisor can use to assess my application. Preferred Location: Residential Address: Daytime Phone: Best time to call: Evening Phone: Best time to call: Email Address: Mobile Number: Current Occupation: How soon do you want to be in the Business? (Number of months from now)
Sincerely yours, [Name and Signature of Applicant] Terms of this letter of intent are informal and confidential. They only become contractual should a definite agreement be executed.
Mary Pauline Salon Franchise Opportunities
What’s Inside the Franchise Kit? I. History of Mary Pauline Salon Group II.
The Company and the Industry
III.
The Opportunity
IV.
Why should I buy a Mary Pauline Salon Group Franchise
V. VI. VII. VIII. IX. X.
XI.
The Franchise Package of Mary Pauline Salon Group
Our System Breakdown of Estimated Initial Investment Sample Income Statement of Mary Pauline Salon Group Frequently Asked Questions
TV, Magazines and Events Sponsorships of Mary Pauline Salon Group List of Some of Mary Pauline Salon Celebrity Clients
I.
History of Mary Pauline Salon Group
Choosing a Franchisor with a strong, reliable and effective background and brand is essential. Our track record and operating system are both proven reliable. The Mary Pauline Salon Group came into being in 2004, when its owner, Mary Pauline S. DangaObias, acquired several salons and established her own salon brand. Mary Pauline Salon Group thus burst into the world of hair and beauty care. Throughout 2005, the Mary Pauline Salon Group continued to shape up its formidable roster of stylists and staff and expanded its services to incorporate the latest trends in the market. Parallel to this development was an expansion plan to penetrate the Shoe Mart (SM) chain of shopping malls. Currently, the Mary Pauline Salon Group has 150 plus branches nationwide. The key to success of the Mary Pauline Salon Group is our relationships with our clients. Our system has made us successful, and in order for you to replicate this success, you will need to operate within the guidelines. You will be provided with a detailed operations manual and on going training. To this end, we offer constant support in all aspects of the business. With the Mary Pauline Salon Group, you will always have a dedicated team to support you!
II. The Company and the Industry Beauty Industry is a billion dollar business and one of the top growth industries of this decade. It is one of the most dynamic, consistently growing and potentially profitable industries in the country, and yet, one of the most disorganized. It is this combination of the huge market potential and the lack of organization in the industry that has produced the opportunity for Mary Pauline Salon Group and its franchises. Mary Pauline Salon Group recognized the need and developed a proven system that disciplines and controls the business. The RESULT? A highly successful and growing chain of beauty salons in the Philippines. At Mary Pauline Salon Group the standards of products, services and overall environment are high and rigidly maintained. In order to maintain this standard, every creative team member must pass a rigid company training program before beginning his/ her employment. Each Salon must adhere to our high standards of maintenance and appearance both inside and outside. Our personnel are required to wear uniforms at all times to enhance the professional atmosphere of the entire Mary Pauline Salon operations. This proven system of standardized operation at every Mary Pauline Salon attracts a volume of business. Customer satisfaction is foremost of our objectives because this contributes substantially to the success of each salon. With a proven track record of success, Mary Pauline Salon Group is definitely poised to lead the way for people who have the desire to become part of the growing industry. It is an industry thriving with opportunity where people can write their own success stories.
III. The Opportunity Welcome to a new choice in franchise investment opportunity! The franchising industry is exploding, but burgers, pizza and tacos are not the major parts of that boom. It is a service explosion and according to experts, there is an even bigger outburst to come in service franchising. In the past three years, service franchises have grown twice as fast as traditional franchises like fast food and auto centers. It is also predicted that their growth rate will be even higher in the next three to five years THREE TIMES THE TRADITIONAL FRANCHISES. The public’s demand for our services, coupled with the lack of major competitions make a Mary Pauline Salon a very attractive investment opportunity. Another key to our success has been our ability to bring some business precepts to the largely fragmented salon industry which is played by sloppy business practices, lack of attention to client’s needs preferences and ignorance of modern marketing techniques. You will agree that if you will take a highly demanded service such as a beauty salon, package it attractively, promote it intelligently and price it competitively, your success can almost be assured.
IV. Why Should I buy a Mary Pauline Salon Group Franchise According to the Department of Trade and Industry (DTI), “Franchising is one of the most creative of various marketing techniques which have emerged in this century. The key to a successful franchise is a strong system. It is the system that provides the appearance that all outlets to the chain; it is the system that all franchisees can follow; it is the system that provides the knowhow to franchisees to keep one step ahead of the competition; and it is the system that will continue to provide abundant opportunities to all who want to fulfill the dream of owning one’s business”. Franchising keeps on growing because it offers long term assurance, the security that comes in working with industry experts, coupled with the independence of owning your own business. As the Department of Trade and Industry sums it up, “Franchising may be the best hope of the small business person to be able to compete with giants by using franchisor’s know how and trademarks. It also offers unique opportunities to people with limited capital experience.” The statistics tell it all. The Franchisors serve a multifold purpose by providing greater efficiency through sophisticated marketing techniques, technological development, standardization and quality control. Add to this list such things as Training, Site Selection, Volume Purchasing Power, Wellknown Names and Logos and Continuous Management Assistance and the reasons for franchisees phenomenal success become more than apparent.
V.
The Franchise Package of Mary Pauline Salon Group
Php 350,000.00 This is inclusive of the following: ✓ Hiring and training of salon personnel which includes: ➢ Senior Hair Stylists ➢ Junior Nail Technicians ➢ Manager/Receptionist/Inventory Clerk ✓ Management training ✓ Accounting, Payroll and Commission System ✓ Operations Manual ✓ Follow up training of employees every six months ✓ Help in Site Location and Design ✓ Advertising and Promotions
VI.
Our System
The Mary Pauline Salon Group Franchise Support System blends every aspect of your operations with the comprehensive business training and assistance you will need to get your business off to a good start.
Here’s What You Get with Your Mary Pauline Salon Franchise Site Selection and Design: We will help you select the best possible location for your store with high visibility, adequate size for optimum use and with the professional image you want. Then we will show you how to design it including guidelines from layout to color schemes and from display to lighting. Indepth training: You will be thoroughly familiarized with all aspects of running a Mary Pauline Salon before opening your doors for business from accounting to inventory and from personnel to cost controls. On the job training at our headquarters office will give you the experience you need to get started.
Daily Operations Guidance: Your confidential operations manual covers all aspects of your day to day business operations. It also contains samples of the forms you will use as well as instructions for using them. Additionally, your employees will be trained in using hair care techniques by our creative team. Grand Opening: You will want everyone in your market to be informed about your new business right away. We will help you design the grand opening celebration to make sure they do. Advertising and Promotions: We will share with you our advertising and promotional strategies that have been successful over the years. Your marketing materials, of course, will stress the professional image and customer benefits you offer your clients. Products and Supplies: We will provide you a complete line of hair products which will cater to your varied customer group. Ongoing Support: Our operation’s expert will periodically visit your location with suggestions on how to improve your business. Your continued satisfaction is our primary goal. We will always welcome your questions, comments and suggestions, and will continue to keep you informed about new products and developments. REMEMBER, WE WANT THE MARY PAULINE SALON GROUP TO KEEP GROWING WITH YOU AS A MEMBER OF THE TEAM.
VII. Breakdown of Estimated Initial Investment The following is an estimate of franchisee’s initial investment for a 4060 square meter Mary Pauline Salon franchise: ITEMS
AMOUNT (PESOS)
Franchise Fee
150,000.00
Hiring and Training of Creative Team
50,000.00
Management Training
30,000.00
Nationwide Marketing Collaterals
30,000.00
Accounting/ Payroll System
20,000.00
Commission System
20,000.00
Operations Manual
20,000.00
Fund for ongoing support
30,000.00
Total
Php 350,000.00
ITEM
LOW
HIGH
Construction Leasehold Improvements (may vary upon geographic location.)
200,000.00
400,000.00
Rental Deposits for 3 months (Based on actual existing outlets)
48,000.00
150,000.00
Signage (Depending on the size)
15,000.00
25,000.00
Additional Furniture, Fixture and Equipment
20,000.00
50,000.00
Opening Advertisement
3,000.00
10,000.00
Grand Opening Cost (Including catering, sounds, lights and flowers)
40,000.00
60,000.00
One (1) month advance
16,000.00
50,000.00
Petty Cash
5,000.00
7,000.00
Change Fund
3,000.00
5,000.00
Working Capital
50,000.00
100,000.00
Business Permits, BIR Registration, Municipal Clearances
10,000.00
15,000.00
TOTAL
390,000.00
872,000.00
(The above items are already included in the P350, 000.00 franchise fee.)
There are however additional expenses which the franchise will incur for the construction and additional salon equipment and materials needed for the operations of the MARY PAULINE SALON. However, said quotation DOES NOT APPLY TO SALONS BEING CONSTRUCTED INSIDE THE MALL.
VIII. Sample Income Statement of Mary Pauline Salon Group
ESTIMATED SAMPLE INCOME STATEMENT* *inside the mall
Inclusive of NET of VAT Sales and Services: (i.e. Php 13,500.00 worth of technical services in a day) Less Cost of Sales Add Purchase: Total: Less: Salon Supplies used Ending Salon Supplies Total Product Supplies Total Product Investment: GROSS INCOME: Less: Operating Expenses: Salaries and Wages Commission Laundry Expense Office Supplies Reproduction Transportation Common Area Maintenance Light and Power Rental Water Expenses Taxes and licenses Promo and Ads Repair and Maintenance Postage, Tel and Internet Bank Charges Professional Fee Miscellaneous Expenses Total Operating Expenses NET INCOME
Php 10,000.00 Php 10,000.00 Php 10,000.00 Php 10,000.00 (Php10,000.00) Php 390,000.00
Php 36,000.00 Php 20,000.00 Php 3,000.00 Php 1,000.00 Php 250.00 Php 1,000.00 Php 9,000.00 Php 12,000.00 Php 75,000.00 Php 4,500.00 Php 8,500.00 Php 2,500.00 Php 520.00 Php 1,600.00 Php 3,500.00 Php 3,000.00 Php 3,000.00 Php 185,620.00 Php 214,380.00
MARY PAULINE SALON INCOME STATEMENT (Net of VAT/Outside the Mall) Sales and Service Less: Cost Of Sales Add : Purchase TOTAL Less : Salon Supplies used Ending Salon Supplies Total Cost Less : Operating Expenses Salaries and Wages Commission Projected commission for the next 6 months Projected commission for the 7th month & onwards Laundry expenses Office supplies Reproduction (Risograph) Transportation Representation Rental Light and Power Water Expenses Taxes and Licenses Nonvat With vat Promo and Ads Repair and Maintenance Postage, Telephone and Internet Professional Fee Miscellaneous Expenses Total Operating Expenses NET INCOME
Php 150,000.00 Php 50,000.00 Php 10,000.00 Php 10,000.00
Php 36,000.00 Php 10,000.00 Php 20,000.00 Php 3,000.00 Php 800.00–1,000.00 Php 300.00–500.00 Php 500.00–1,000.00 Php 1,000.00 Php 20,000.00–35,000.00 Php 3,000.00–5,000.00 Php 1,000.00–1,500.00 Php 1,000.00–2,000.00 Php 3,000.00–5,000.00 Php 1,500.00 Php 2,000.00 Php 2,000.00 Php 3,000.00 Php 1,000.00–1,500.00 Php 105,000.00 Php 35,000.00
IX. Frequently Asked Questions The answers to the following most frequently asked questions about Mary Pauline Salon Group franchise are provided here to help you accurately assess and make a fully informed decision concerning our franchise opportunity.
What Type of Franchise Are Available?
We are currently offering individual and multiple franchise locations
What Kind of Experience and Background Do I Need? No prior experience in a beauty salon is required. Our comprehensive training is designed to educate a new franchise in all areas of operating a Mary Pauline Salon Franchise.
What is the Nature of Training and Ongoing Support Provided? Everything you need to know to operate a successful MARY PAULINE SALON® Franchise is included in our training program. Among other things, it includes advice on store layout and design, equipment selection, methods of inventory control and maintenance, standards of quality, advertising and promotion, personnel policies and employer training. The training cost included in your franchise fee, however, does not include your personal expenses such as transportation, lodging and meals, etc. You will receive a MARY PAULINE SALON® Operations Manual covering all the above areas of importance to your business plus a lot more as ready references. Since we are continually striving for excellence, you will be periodically updated and kept current on all industry trends, new products and services as well as new advertising and promotional techniques, etc. To help your business get off to a good start, one of our representatives will work with you for one week during your first month of operations. In addition, you will be provided total on going supervision and support in the form of periodic visits by our experienced staff on all aspects of your operations. You can also call our office whenever you need advice. Remember, our goal is to provide you with all the guidance and support you need to help you maximize the return on your investment and the enjoyment of owning a MARY PAULINE SALON® Franchise.
What Does a MARY PAULINE SALON® Cost? The franchise cost is Php 350,000.00. This is inclusive of the franchise fee, hiring and training of the creative team, management training, accounting system, payroll systems, commission system and operations manual. THERE IS NO ROYALTY FEE. For information on total investment required, we will provide you a feasibility study. We also have offer a total franchise package for only Php 500,000.00 and is already inclusive of basic salon furnishings
Does MARY PAULINE SALON® Offer Financing? MARY PAULINE SALON® GROUP does not offer direct or indirect financing but may choose to at its discretion. MARY PAULINE SALON® Group does not guarantee your notes, lease or obligations.
How Can I Determine if a Geographic Area is Available for Franchise? Availability of geographic areas change quickly as franchises are awarded. However, one of the advantages of getting in with a relatively new franchise is that choice markets are still available. You may designate where you wish to locate as long as it does not infringe upon any other franchise’s territory. Naturally, the more flexible you are, the quicker a location can be found.
How Do I Select a Location? Based on our experience, we can provide valuable assistance to our franchisees in site location decisions. Your business may be located in a shopping mall, a strip center, an agreed standing building on the prevailing market conditions in the area of your choice.
Will My Territory Be Protected? Yes. Each franchise is granted an exclusive area in which no other franchise is awarded.
What is the Term of the Franchise Agreement? The initial franchise agreement is for five (5) years with an option to renew for another five (5) years with an additional Php 100,000.00 franchise fee requirement. Am I Required to Purchase Equipment, Inventory or Supplies From You? Yes. This is to ensure consistent quality and conformity in standards.
Do You Provide Business Aids We Can Use? Yes. We have developed appropriate forms to support our business system and to make inventory control, bookkeeping and accounting, purchasing, daily record keeping, reporting and payroll easy to accomplish in an efficient and accurate manner. Advertising and marketing aids which have been professionally prepared will also be made available for you to help you promote your business.
How Will Advertising Be Handled? Building recognition of the MARY PAULINE SALON® Franchise, name and reputation is an essential ongoing objective of our organization that benefits everyone. We will not charge an additional cost for the NATIONWIDE MARKETING OF THE SALON.
Can I Sell My Mary Pauline Salon Franchise? Yes. Our franchise agreement details all the terms and conditions of business sales and transfers.
How Soon Can My Business Be In Operation Once I Have Been Accepted for a Franchise? Once a mutually agreed upon location has been secure, construction and supplying your new business for opening should take approximately one (1) month.
Okay. I am Ready to Proceed. What Do I Do Next? First, fill up the enclosed franchise application form and letter of intent. Text or Call Miss Mona at 09159060713. You can also send the signed application form via email to
[email protected]. Upon receipt, we will arrange a personal meeting with you. After we have had an opportunity to meet each other and the necessary disclosure requirements have been met, a franchise agreement may be executed. We have attempted to answer the most commonly asked questions about the MARY PAULINE SALON® franchise. We are sure you must have a few more that we have not covered, so please free to call or text Miss Mona at the number above. Thank you for your interest.
X. TV, Magazines and Events Sponsorships of Mary Pauline Salon Group o It’s Showtime! o ASAP o Gandang Gabi Vice o Party on Five o Sweet Life o Unang Hirit o Major Sponsor in Mutya ng Pilipinas o Major Sponsor in the Search for the Next White Castle Whisky Girl o Pinoy Big Brother o Pinoy Dream Academy o Major Participant in Sunsilk Launching Event o Major Participant in Hair Asia Competition o Chosen as One of the Most Outstanding Salons o Featured in Kabuhayang Swak na Swak o Featured in Fit and Fab o Featured in Cosmopolitan Philippines o Featured in Lakbay Asia o Featured in Candy Magazine o Featured in Metro Magazine
XI.
List of Some of Mary Pauline Salon Celebrity Clients
o EDU MANZANO o FRANCINE PRIETO o PIOLO PASCUAL o PINKY WEBB o GELLI AND JANICE DE BELEN o CARMINA VILLAROEL o ISABEL OLI o CARLO AQUINO o CARLOS AGASSI o BAYANI AGBAYANI o KIM CHIU o GERALD ANDERSON o CHERRIE PIE PICACHE o ALI SOTTO o BUGOY o WILMA DOESN’T o IZA CALZADO o PAOLO BALLESTEROS o JED MADELA o VHONG NAVARO o MARVIN AGUSTIN o JEREMY MARQUEZ o ALVIN PATRIMONIO o CHRISTINE REYES o ANGELICA DELA CRUZ o DIRECTOR MARIO J DELOS REYES o PJ VELERIO o JENNELYN MERCADO o PIA GUANIO o RAFAEL ROSSEL o MICHAEL V. o SUNSHINE CRUZ o POLO RAVALES o JOROSS GAMBOA o RHIAN RAMOS o CHYNA ORTALEZA o MAUI TAYLOR o ANGEL LOCSIN o DESIREE DEL VALLE o PAOLO CONTIS o ISABEL OLI
