The big money is really only there if you want to expand. If you love food and just want to run your own sandwich shop – singular – you won’t make it into rich list. And you probably won’t please the franchisor either – which is important.
O’Brien’s has an Area Development Agreement, which you may be required to enter into for three stores to be opened in three years. Obviously this will be applicable in areas with enough potential and you would be given your own territory to do it in but the point stands that entrepreneurial types flourish.
The Subway philosophy echoes this and as well as encouraging its franchisees to open multiple stores, it is also urging them to start up in ‘non-traditional’ locations. These include colleges, hospitals, business parks, amusement parks and so on. Obviously this currently works well were the brand is better known but being the first here will boost your success.
Owing to its youth in the franchise market Mr Bagel’s doesn’t have a policy for multiple franchises, presumably this will develop as it expands. Although its projections for a single store are perhaps ambitious - £103,740 for a large store in the first year while a very successful O’Brien’s franchisee took five years and 4 outlets to net £175,000.
You job is to promote the brand and particularly your shops wherever possible. Franchisees are expected to go out and make their stores a part of the community by sponsoring local charities and getting involved with local firms. Rob Shields from O’Brien’s sponsors a local motorbike team.
There is local advertising done as part of the fee you pay but sometimes it is work putting a bit more in to see increased results. Rob pays 3% to O’Brien’s but reckons he puts another 2% into his own projects. But as a result he is known in and around Cambridge and has influence for example when he won the only food outlet site in an out of town science park.
And boosting your takings through offering additional services like outside catering can really make a difference. Within three months one franchisee had recruited 50 regular companies yielding £150 extra a day.