Setup Costs - UK
Mr Cod franchise set
up costs are shown below:
- Franchise Option Fee - Mr
Cod currently charges £2,500 as an initial fee. A further
£2,500 will be payable on opening each franchise unit within the
franchisee territory.
- Ongoing Royalty - Mr
Cod charges an ongoing royalty payable monthly. The royalty is
a fixed fee, not a percentage, agreed between franchisor and franchisee
for the term of the licensing agreement, and is dependant on shop size
and location.
- Equipment and Shopfitting Costs -
The investment required to set up and launch your first Mr
Cod can range from between £65,000 and £100,000.
See below.
The table below sets out the estimated
costs involved in opening a take-away Mr
Cod shop. The figures provided are for illustrative purposes only.
| Item |
Cost |
| Option fee |
£5,000 |
| Shop fitting |
£20,000+ |
| Equipment |
£30,000 |
| Ventilation |
£5,000 |
| Signs & display units |
£5,000+ |
| Administration (legal & property) |
£2,000 |
| Total |
£67,000 |
| Additional cost of opening (promotion
etc) |
£5,000 |
| Contingency |
£3,000 |
| Grand total |
£75,000 |
Turnovers are not easily predicted
as they will vary from site to site dependant on location. Gross margins
after food and packaging costs are approximately 65%.
Franchisees are encouraged to spend up to 4% of their turnover
on promotional and advertising activities within their territory in order to help
their business succeed. The company will provide franchisees with tried and tested
ideas using the Mr Cod brand and logos, which must
be respected on all materials. As part of the recent marketing activity aimed
at developing the brand, plans are in place to set up an advertising co-operative
in the near future.
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