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Franchisee Faqs

Franchisee Faqs

Are you keen to become a franchisee, but still have a few queries or questions about what to do next or what experience or financial backing you might need? Take a look at our FAQs. You might find just the answer you have been looking for. Any questions remaining? Contact Heather in the franchise team on: Office: 01223308781 Mobile: O7824880273 Email: hmackenzie@foodco.co.uk

Q: Can I sell my franchise?

Yes. Should you wish to sell your Muffin Break, we will be able to advise and assist with this process.

Q: Should I seek independent advice before entering Muffin Break's franchise system?

It is essential for franchisees to obtain competent legal advice before entering into the franchise documentation. We also reccommend that franchisees retain the services of a competent accountant.

Q: What operating results can be expected?

Experience has demonstrated that a properly operated cafe, with well managed staff, should attain a gross profit of approximately 72-78% (after food/beverage and packaging costs have been deducted). Net operating profits depend on sales levels achieved, but before debt service and tax may approximate 24% of net sales (this is also dependent on product mix sold), subject to the cafe being well managed by the franchisee and managed in accordance with Muffin Break’s normal standards.

Details and discussion of these percentages will be provided during your interview. Muffin Break does not make any sales forecasts or projections.

Q: How do I obtain financing?

We have a successful track record with our preferred high street banks who will lend up to 70% of the total investment, often without collateral/security. We will be able to help you to compile your business plan and arranging the bank meeting.

Q: What happens at the end of the ten year franchise term?

Subject to renewal of the lease of the shop and you meeting certain requirements (one of which is paying 80% of Muffin Break’s then current franchisee fee), we will grant you a new term of 10 years.

Q: Is there a standardised procedure that I am required to follow?

Yes, however the procedures are simple. Our systems for diversified matters such as reporting, insurance, accounting practices, purchasing, hiring and training new staff, cost control, advertising, merchandising and other essential functions contribute to the efficient operation of your cafe.

Q: Could I learn to operate a Muffin Break cafe?

Previous experience in the food industry is not necessary, but basic management capabilities are a pre-requisite for any retail venture. We look for franchisees who possess the qualities mentioned in our Franchisee downloadable brochure.

Q: Where do I purchase my supplies?

We have established relationships with suppliers who will deliver to your store. Prices are negotiated on group buying power.