Food on the go – Trios facts and figures
Serving up: nutritious filled Laffe wraps
Facts and Figures
Franchise fee: 45,000 plus GST
Working capital: the design and construction of a purpose-built Trios store is usually in the range of $250,000 to $300,000 (upscale cafe stores will vary based on total seating area), plus advertising and royalty fees.
How much is invested in stock/supplies: Start up stock is usually between $5000 and $10,000 subject to location.
Is this a turnkey operation? Costs will vary depending on the circumstances of the transfer and whether or not the site is an existing operating franchise.
Royalty fee: six per cent of turnover.
Marketing levy: three per cent of turnover.
Term: usually five years with the option of an additional five years, if provided for in the lease .
Renewal fee: Trios hasn't yet charged renewal fees but may in the future.
Lease: franchisee holds the license to occupy premises
Operating hours: in shopping centres from 9am to 5pm Monday to Sunday but other concepts to be released will have extended opening times.
Average customer spend: About $9.
Trios has 11 stores, nine of which are healthy eating francises and two company owned. There are plans to roll out up to 10 new stores in southeast Queensland over the coming months. There is a Master Franchise Agreement in place for the Middle East, with five stores successfully trading, and another 10 to 15 planned across Riyadh, Saudi Arabia, UAE, Dubai and Kuwait in 2009. A further 25 company stores across the US and China are planned, with the first concept store due to open in Houston, Texas in November 2008, as a result of a recent joint venture agreement with a US partner. This store will be launched under the banner Trios Fresh'. Master franchise Agreements for regions within the US are scheduled to be in place by early 2009.
The Loyalty Zone Program is currently in development. The program is designed to convert what Trios calls 'mid-zone customers', customers who would neither promote or detract from the brand, into active promoters of the brand and therefore build customer loyalty.
The food and beverage franchise company is also in the final stages of introducing a Trios Swipe Card, where customers can join the loyalty program and enjoy added value prizes, competitions, and tasty club forums, which allow customers to have their say in future product innovations.
The flat fee covers the initial franchisee training costs prior to store opening. If an existing franchise is transferred, the transfer fee also covers incoming franchisee training. The royalty levy covers the following: the use of intellectual property, ongoing franchisor support including management and technical advice for efficient operations, equipment advice, guidance on all aspects of operations, on-going training if required, proven sales techniques and customer relations.
The marketing fund includes advertising, consumer campaigns and maintenance of Trios fast food franchise website plus the implementation of promotional programs.
Any supplier rebates are used to administer the marketing fund, or are contributed to the fund.
Training costs are part of the one-off franchise fee. The six week training program includes intensive training in a company-owned store, then we spend two to three weeks with the franchisee in their store, depending on their experience and then visit weekly until both parties are satisfied that the training has been successfully completed.
Of all Trios ingredients, filling and dressings, 95 per cent are exclusively designed and produced. The main food preparation elements are chopping and slicing lettuce and tomatoes. Set up in the morning only takes around 30 minutes, so franchisees can arrive at the store at 8.30am and be ready to trade by 9am.
This article appears courtesy of Franchising Magazine
