Do you have a question about partnering with Spun Candy? Below, you’ll find answers to some of the more common questions we’re asked.
If you have a question that’s not listed here, please get in touch with our franchise team today.
Yes. You will pay the remaining balance of the single unit opening fees upon the lease signing of each additional location. We have a Design and Project Management (D&PM) cost for your flagship unit, with reduced D&PM cost for future units.
Each franchisee must pay for their exclusive Development Area interactive booking website and some other initial start-up costs.
Spun Candy will work with you to thoroughly investigate the local market including local and international competitor prices, landed costs of raw materials including all proprietary items and the anticipated margins on our products. This information will be used to support the development of the ideal market positioning strategy and we will work with you to formulate a retail pricing strategy relevant to the market positioning strategy.
No. However, we stipulate that you must provide us with a marketing plan for the following 12 months and allocate 2% of your monthly gross sales towards marketing spend. For the initial opening of your flagship unit in the Development Area you are required to allocate a set budget amount for the first 6 months of trading.
Yes. The franchisee must pay a continuing royalty fee which is a % of the monthly gross sales minus any sales tax. There is an additional 0.5% payable towards the hosting, maintenance and updates for your interactive booking website.
The Franchisee must pay an Exclusive Area Development Fee upon signing the Area Development Agreement (ADA). The fee is calculated based on the agreed number of units to open in the development area multiplied by a % of the initial single unit fee for each unit.
The initial investment and subsequent development of units under your development schedule can vary considerably. You should consider factors which include the location of units, rent, rates and labours costs along with the projected working capital you will require whilst you build up your clients and get known in your development area. The size of your unit and the cost of materials for the construction can alter the price per square metre considerably. You should also consider the duties, taxes and shipping costs, so all of these can be correctly modelled in your projected profit and loss and capital expenditure budget. Spun Candy can assist with estimating some of these costs.
