Frequently Asked Questions
What is a franchise?
A franchise is a trademarked business formula owned by a company (franchisor) and is available to individuals to purchase the rights to operate a small business (franchisee) for a set period of time.
Franchisees are in effect, small business operators, located in metro, suburban, regional and rural areas.
When you buy the rights to open a franchise, you’re buying the rights to use a proven business system, with proven prices, products, and marketing techniques. You’re also buying the rights to a brand: you get full access to the company’s trademarked materials including logos, slogans, and signage — essentially anything that has to do with the brand.
What is a franchisee?
The franchisor is the provider of the franchise system and the franchisee is the purchaser of the franchise business.
A franchisee is a person who wants to own their own business and would prefer to work within a tried and tested framework rather than on their own, and are prepared to pay a franchisee fee to be allowed to operate using someone else’s business system.
What is the initial investment required?
Your upfront investment costs may vary and traditionally include a store fit-out and any initial franchise fee.
What are the other setup costs?
Depending on the style and type of store, costs other than the purchase price may include.
– All training
– Bank guarantee facility (traditionally 3 month’s rent)
– Legal costs
– Own due-diligence costs
– Business establishment costs such as food license, insurance etc.
– Fuel bond (service stations only)
Further understanding can be obtained by contacting our sales department.
How long is a franchise term?
The standard initial term for NightOwl convenience store agreements is 5 years, with 5-year renewals available thereafter. For fuel service stations, the initial term is 10 years, with 5-year renewals.
What are the lease terms?
NightOwl holds the head lease and issues the franchisee a sub-lease. Leases are typically negotiated for 5 + 5 + 5-year terms.
For fuel service stations leases are typically negotiated for 10 + 5 + 5-year terms.
What are the ongoing commitments to the franchisor?
– Royalties, marketing, and development levies on weekly sales.
– Fuel levies (service stations only)
– Weekly online training subscription fee
– Weekly price file maintenance fee
For full details, please contact our sales department.
How does stock ordering work?
Franchisees are responsible for their own ordering, however NightOwl negotiates for all franchised stores at the franchise support office. These trading terms are passed down to each franchisee in the form of off-invoice discounts and special promotions buying prices.
NightOwl has preferred suppliers (direct and indirect) which franchisees order from. Investment buying opportunities are regularly available.
Our online system generates optimal ordering recommendations.
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 combined with the ability to target their local demographic needs.
Self advertising, community engagement and online promotion is encouraged.