Working on the salad bar – check out these options.
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: 5 percent, marketing levy: 2.5 percent on gross sales
Term: 10 years with one 10 year renewal option
Renewal fee: 50 percent of the then current franchise fee offered to new franchisees or $27,500 + GST which ever is the greater.
Lease: leaseholder is the franchisee.
Operating hours: 6.00 — 4pm Monday to Friday, with the store opening from 7am — 3pm
Average customer spend: approximately $3.40 (introduction and growth of coffee products and increase of single purchase sales)
There are 18 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 weeks 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. MYO training 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 local marketing manual released in October will include a customer loyalty scheme.
Sumo Salad – serving up: not just salads but soups, wraps, rolls and breakfast
Facts and figures:
Franchise fee: $45,000 plus GST
Working capital: $30,000 to $50,000 inclusive of security deposits.
How much is invested in stock/supplies: $10,000 plus GST
Is this a turnkey operation? The full investment of $350,000 to $380,000 plus GST gives a turnkey operation.
Royalty fee: six per cent of gross sales, marketing levy: two per cent of gross sales
Term: five years with a further five year renewal option
Renewal fee: $5000 plus GST.
Lease: SumoSalad holds the head lease and grants a license to occupy the premises under the terms of the franchise agreement.
Operating hours: typically shopping centre trading hours including late nights and weekends.
Average customer spend: $7 to $8
Paying the franchise fee gives the franchisee rights to the SumoSalad system and intellectual property for the term of the franchise. For the royalty fee and marketing levy they receive guidance, support and assistance from the franchisor, and national marketing activities. Any rebates from suppliers are paid into the marketing fund for the benefit of all franchisees.
What are the training costs and what is the training? A detailed training program over a five week period costs $10,000 plus GST — training covers all aspects of operating a SumoSalad franchise. A significant proportion of food, particularity the bread products, and made-to-order salads are prepared on-site with the express salads provided externally. There are 65 franchisees in 2008; a further 15 stores are planned for 2009.