The process that takes place prior to granting an international franchise includes, but is not limited to, the following:
Upon contacting the Pollo Tropical® International Development department, the candidate receives a set of introductory documents describing the company’s international program, the concept and the two-phase process followed in qualifying and awarding franchises.
Provided the candidate meets the general requirements, a confidentiality agreement is executed. Further sharing of information beyond the overview documents noted above will not occur until this agreement is executed.
Upon execution of the confidentiality agreement, an exchange of detailed information takes place: from Pollo Tropical, documents covering the business model and details of the investment as well as Development Agreement (DA) and Franchise Agreement (FA) templates are provided; from the candidate, all requested documentation (from PHASE ONE in the inquiry process) is provided. All information received by Pollo Tropical is kept strictly confidential.
During this time frame, the head of franchising may visit the market to assess market conditions and to personally observe the operations (if applicable) of the candidate.
At this point (or before) the candidate provides all the information requested in PHASE TWO. Upon approval of the financial and operational requirements, a proposed DA term sheet (in some cases including a market penetration analysis) will be presented to the candidate for review.
A visit by the candidate to Pollo Tropical headquarters and meetings with key department heads and executives then takes place. This important step is mandatory. During these meetings, the candidate can have questions answered and to assess the support staff that will be involved in the business. Pollo Tropical executives take this opportunity to interview the candidate in order to participate in the approval noted below.
Once steps 1 through 6 have been completed, an approval package is assembled and presented to Pollo Tropical leadership for approval.
Upon formal approval by Pollo Tropical leadership, executed copies of the DA are sent to the candidates for signatures. Upon full execution of these documents, the candidate becomes a Pollo Tropical developer. Once the first site is approved and construction begins, the FA is executed, and the developer becomes a Pollo Tropical franchisee.
Certain countries require registration of the franchise or the presentation of “disclosure documents” of varying formats or both. Depending on those requirements, if applicable, the process is adapted to ensure compliance with all local laws and regulations. This entire process can take as little as 60 days or as long as one year or more – depending on many factors, primarily in the hands of the candidate and depending on local laws. Pollo Tropical will not place any unreasonable obstacles in the way of a timely resolution of the approval process. Pollo Tropical expressly reserves all rights to add or remove markets from consideration. Pollo Tropical also reserves the right to approve or reject the candidacy of any person or business at its sole discretion.