What is the establishment cost for a new franchise?
From $450, 000 + GST , and includes:
- Complete fit-out
- Initial franchise fee
What are the other setup costs?
- Initial opening stock
- All training
- Bank guarantee facility [traditionally 3 months’ rent]
- Legal costs
- Own due-diligence costs
- Business etablishment costs
What is the franchise agreement?
- Initial term 5 years
- 5 year renewals available there after
What are the lease terms?
- NightOwl holds the Head Lease
- NightOwl issues the Franchisee a Sub-Lease
- Leases are typically negotiated for 5 + 5 + 5 terms
What are the ongoing commitments to the franchisor?
- 3.5% Royalty on gross weekly sales
- 1% Marketing on gross Weekly sales
- 1% Development levy on gross Weekly sales
- Weekly online training subscription fee
- Weekly price file maintenance fee
How does stock ordering work?
- NightOwl negotiates for all franchised stores at Franchise Support Office
- These trading terms are passed down to each Franchisee in the form of off-invoice discounts and special promotions buy prices
- NightOwl has preferred suppliers which Franchisees order form
- NightOwl has direct suppliers and indirect suppliers
- Franchisees are responsible for their own ordering. This can be done automatically as long as the Franchisee is diligent with the Perpetual Inventory Process with in their back office
- Investment buying opportunities regularly available
Is there flexibility in becoming a NightOwl franchisee?
Whilst there are compliance consistency guidelines with becoming a NightOwl Convenience franchisee, we encourage innovation and entrepreneurship within each business.
Franchisees have the security of a Franchise system but also have the ability to target their local demographic needs.