Food on the go - MYO Make Your Own facts & figures
MYO make your own
Serving up: serve yourself salads and sandwiches
Facts and Figures
Total investment: $300,000 to $400,000 depending on the site and including franchise fee.
Franchise fee: $60,000 plus GST
Working capital: suggested $50,000.
How much is invested in stock/supplies: about $60,000 to $100,000 is needed to start the business
Is this a turnkey operation? Yes
Royalty fee: five per cent Marketing levy: 2.5 per cent on gross sales
Term: 10 years with one 10 year renewal option
Renewal fee: 50 per cent of the then current franchise fee offered to new franchisees or $27,500 + GST, whichever is greater.
Lease: leaseholder is the franchisee.
Operating hours: 6am to 4pm Monday to Friday, with the store opening from 7am to 3pm
Average customer spend: approximately $3.40 (introduction and growth of coffee products and increase of single purchase sales)
There are 18 food and beverage franchises with 26 targeted for the end of 2009. The majority of product is pre-prepared.
What does the franchisee get for the franchise, royalty and marketing fees? The fees include a 10 year agreement, training, use of brand and system and use of MYOWeb System; a turnkey operation; the MYO system with five comprehensive manuals, MYO web database linked to POS, national marketing and communications, MYO and Diabetes Health Partnership (fundraising), site selection and lease negotiations, coaching and development, and business management.
The business management training is part of the franchise agreement and is a two week program based in Perth (flights and accommodation are not included in the fee) with one week in-store on operational aspects and one week in a classroom learning the business aspects.
Training with MYO cafe franchise also includes one or two weeks training with a mentor on operations. The franchisor spends the opening week in store to assist with any extra learning required.
Franchisor rebates are used to run the MYO Franchise Advisory Council in developing the strategic and marketing framework for the group. However, the group also negotiates franchisee volume rebates wherever possible and also organises the Supplier Conference Sponsorship to reduce the costs of the MYO conference for the group.
The new local marketing manual released in October includes a customer loyalty scheme.
This article apprears courtesy of Franchising Magazine