We appreciate that we have gone on at length about sustainability and our aim to provide ethically sourced food for all. You will have gathered how important this is to us and in turn, we understand that you will only pursue your interest in owning a StreetCube if our aims align. No matter how worthy those aims might be we recognise that we cannot achieve them without running a profitable business. Detailed below are the initial and ongoing fees for you to become a StreetCube Franchisee as well as projected turnover and profitability estimates.
Licence Fee – £15,000 + VAT (covering a 5 year licence with two automatic rights of renewal for a further 5 + 5 years)
Turnkey Package Fee -£33,000 + VAT
Management Service Fee – 10% of Gross Profit + VAT paid monthly
Marketing Levy – 1% of Gross Profit + VAT paid monthly (to be used exclusively to market the StreetCube Brand)
Cube Rental - £30.00 + VAT per day
|Financial Projections||Year 1||Year 2||Year 3||Year 4||Year 5|
|Gross Profit %||71%||71%||72%||72%||72%|
NB. The above are projections only and are not intended nor should they be taken to be a guarantee of future income. This will be dependent on the efforts of each individual franchisee.
They are based on the following assumptions:
Cubes will be open for business 7 days a week
Franchisees will employ a Chef for two days (allowing for franchisees days off)
At least one other member of staff will be employed (potentially two if demand warrants it)
An average day will be 8 hours (this could be longer should you wish thus increasing profits)
The number of meals sold per hour ranges from 7.5 in year one to 10.9 by year five when the business has built up
Cubes will achieve their sustainability targets.
Additional income, which has not been included in the above figures may be derived from utilising services such as Deliveroo and Uber Eats to capitalise on the home delivery market.
Due to businesses that operate under a franchise system having an extremely low failure rate banks are keen to support franchisees by providing funding. It is likely that, depending on your credit history, you will be able to borrow up to 50% of the required capital to get you started.
Because of our commitment to sustainability there may be other avenues for funding available. We would be happy to discuss these with you at interview stage.