What is the initial investment required?
Your upfront investment costs may vary, starting from $450, 000 + GST, including a complete store fit-out and your 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
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 terms.
For fuel service stations leases are typically negotiated for 10 + 5 + 5 years.
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
- 1c per litre fuel levy (applicable to service stations only)
- Weekly online training subscription fee
- Weekly price file maintenance fee
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 buy prices. NightOwl has preferred suppliers (direct and indirect) which franchisees order from. Investment buying opportunities are 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 combined with the ability to target their local demographic needs.
Do I need to be actively involved in operating my store?
Yes, we recommend our franchisees are involved in the day-to-day running of the business to maximise chances of success.