Druxy's - Famous Deli Sandwiches Since 1976

The total cost of a DRUXY'S Deli will vary from project to project, with an approximate total investment of $400,000. This includes the franchise fee of $30,000, construction cost of $270,000, opeminmg inventory inventory, first and last month rent,opening promotions of $55,000 and working capital of $45,000.

You will need to have a minimum of $150,000 available in unencumbered cash. The balance of the investment can normally be arranged through a bank loan.

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Unencumbered cash is cash on hand, in a savings account, chequing account or GIC account, otherwise known as "liquid capital". Home equity and RRSPs are not usually considered unencumbered, unless you can borrow against your home or RRSP. Your assets must be in Canada and you must be able to provide appropriate documentation to substantiate all assets.

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While DRUXY'S does not offer our own funancial assistance for franchisees we have made arrangements with the Bank of Montreal for a loan program open to franchisees on approved credit.  The contact at the Bank of Montreal is Rosemary Iacobellis, Commercial Account Manager, Bank of Montreal, 2851 John St. Unit 300, Markham, Ontario L3R 5R7, Tel: (905) 475-2722, Fax (905) 475-7513, email Rosemary.Iacobellis@bmo.com.

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The Royalty fee is 6.5% of the Franchise's weekly Sales net of promotion and discounts. This fee provides you with the use of the DRUXY'S brand name and operating system as well as ongoing support, training, research and development. In addition, the franchisee is required to make a weekly Advertising Fund contribution equal to 2% of the Franchise's weekly Sales. This is used to promote and build brand recognition.  Franchisees are also expected to invest 2% of sales in local promotions aimed at building customer relations within the local neighbourhood.

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Typically, a franchisee will train for 6 weeks in a training restaurant and 2 weeks in their own restaurant. The initial training will be conducted at a location designated by DRUXY'S Head Office. Our training program for you and your staff is thorough. The only extra cost for training beyond what is included in your total investment is travel, accommodation and meals for DRUXY'S trainers. (We will cover the cost of training 2 people in our Head Office training centre. It will be the franchisee's cost to pay for hourly staff while in training at a corporate restaurant. It will also be the franchisee's cost to travel to the designated Head Office training centre)

Beyond the initial training DRUXY'S field staff does regular checks of all restaurants to give franchisees valuable feedback on how they are doing. Additionally we run regular seminars to keep franchisees up to date on issues of importance to their operation from ordering products and costing to staff training and local store marketing.

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Your return will depend on a number of factors: your skill and abilities, your competition, interest rates, the economy, labor and supply costs, lease terms and the marketplace in general. But most importantly it will depend upon your commitment to your customers. As you proceed, we can show you average figures based on our existing franchise and corporate locations.

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DRUXY'S is famous for our superb quality and consistency. Therefore, it is important that we purchase products through a designated supplier system, which ensures we maintain high quality, consistency and as a franchisee you also benefit by way of bulk purchasing, reasonable credit terms and regular delivery to your restaurant.

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Our main function as a franchisor is to support and assist the franchise system. This means providing ongoing phone calls, restaurant visits and coaching to ensure each one of our DRUXY'S franchisees is following our proven systems, specifications and standards to drive consistent operations and profitable sales.

DRUXY'S regularly adds to its menu and consistently offers support in marketing, communications, supplier relations and system implementation.

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DRUXY'S Development Department locates sites. We welcome all site suggestions; however, please keep in mind that they are subject to approval by our Development Department to ensure that it meets our proven standards to better ensure the success of the location being chosen.

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Naturally how much money a franchisee earns will depend on the sales and expenses of a location, the franchisee's skills, the quality of staff, current market conditions and local competitive activity. Profitability can fluctuate from area to area and even restaurant to restaurant. It is also important to remember that some locations take longer than others to establish a regular customer base. Repeat business is key, as it provides the base for significant growth of sales. Our research has found that there truly is a direct relationship between sales growth, customer loyalty and service. The commitment of a franchisee to his or her customers will lead to better than average profits.

We make no earnings claims and encourage each candidate to conduct his or her own thorough due diligence review, one that includes professional assistance and includes contacting our existing franchisees.

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You can expect ample marketing support from DRUXY'S. Ad production, menu development, point-of-sale materials, signage, and radio campaigns are only a few of the many marketing support opportunities.

DRUXY'S is very proud of our aggressive radio campaign in the Greater Toronto Area. This campaign has been on air for 4 years, reaching 1 million listeners every week an average of 3 times. Behind this campaign our same store sales have grown 14% over 4 years. This campaign has successfully built awareness of DRUXY'S and our philosophy of healthy, high quality food.

Our marketing program has also featured two additional elements:

The DRUXY'S Card was introducted across all of our restaurants in December 2006. With the DRUXY'S Card, we are able to give our regular customers added value. We do this by offering special discounts only to card-holders or bonuses when customers load value onto their cards. There is one additional advantage for customers and that is the 30 seconds that each customer saves on average when they pay for their meal with the DRUXY'S Card.

Community involvement is where our marketing goes beyond direct promotions and awareness advertising. We appreciate the long-term relationship that we have had with our customers. We believe that this loyalty must be returned. To this end, we help hundreds of charities each year that approach us for food donations. Additionally, over the past 15 years we have had a special relationship with Camp Awakening, a camp for physically challenged children. Every second year we run a campaign to promote and raise funds for the camp.

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