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Jump into Trampoline franchise

Sarah Stowe

Victorian based ice cream business, Trampoline Gelato, has been franchising since November 2007.

Number of franchisees: Seven.

How many multi-units: None.

Total franchise investment: $250,000 to $350,000

Set-up costs including fit out/stock: Included in above figures.

Vehicle loans: N/A.

Working capital required: $10,000 is ideal.

Ongoing marketing and royalty fees: Seven per cent royalties and three per cent marketing.

Training costs: $6000 plus GST.

Any franchisor funding available: No.

Average time it takes from initial inquiry to franchise opening: From two to six months.

Term of agreement: Ten years.

Leasing: who handles negotiations? Who holds the lease? The franchisor usually does negotiating and holds the lease but franchisees may in some circumstances.

Main method of franchisor/franchisee communication: Email, online, phone or face to face.

Frequency of BDM visits: Monthly in Victoria, quarterly interstate or as required.

Do you have a franchise advisory council? No

Lead generation – is it centralised or local? Centralised.

What and when was your last investment in back office reporting? A new system is due for implementation in May 2010.

Percentage of franchisees up for renewal who did renew since November 2008: N/A.

Number of closures since November 2008: One.

Frequency of franchisee profitability reporting: Monthly.

Average franchise turnover July 2008 to July 2009: $454,000.

Growth plans for 2010 to 2011: 10 stores are planned in Darwin, Victoria and Queensland.