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Restaurant Insider
09.29.08 – Brands Pass On Savings to Franchisees
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Concepts attract franchisees with low buildout costs, stronger supplier relationships and most importantly, great ROIs… Fuzio Universal Bistro's new franchise program gives franchisees a total opening package that keeps buildout low. The Italian/Asian bistro will open three more units this year in Fremont, Stockton and Brentwood, California.

Brand integrity and key personnel are important criteria when choosing a restaurant concept to franchise but at the end of the day all franchisees desire brands that will give them the best return on their investment. One of the easiest ways to provide good ROIs is by keeping buildout costs low and not making franchisees add unnecessary expensive décor strictly for looks... A former Taco Bell franchisee of 38 years, Allen Beebe, picked up Fuzio from Chevy's ownership last year and is working to whittle down buildout costs below $750K, which will then provide franchisees with a 2:1 ROI.

Count on Fuzio to open three to four more corporate units next year. The 10-unit company aims to court franchisees and hopes to raise that number in 2009. President, CEO and Owner Beebe wants to provide franchisees with the total package from site selection to equipment and marketing. He is still working out the kinks and will roll out franchising this year. Beebe is careful to leave nothing to chance and already put a distribution company in place to handle all new and existing units. Ideal franchisees will open three to five units and come with industry experience. Fuzio likes franchisees that have another brand and relationships with banks already in place. The concept's core menu revolves around Italian and Asian menu items. An average check is about $17 to $18 at dinner, which delivers value to consumers due to its higher quality bistro-type entrées. Ideal units are 3,000-s.f. to 3,500-s.f. inline or end cap spots. Fuzio looks for mixed-use developments with nearby rooftops. New units are expected to gross $1.5M and buildout is currently around $750K but Beebe strives to bring this number down a little. CFO Paul Draper owns Centerra Capital Inc., an investment banking/investment management firm specializing in mid-size companies that provides Fuzio with funding.

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