Are you considering buying into a snack vending machine business? If you’ve done your homework, you’ll know that snack food vending machine price – and the cost of franchise agreements which allow you to operate them – varies widely from vending company to vending company.
There’s a lot of variation in the market, and a number of franchise options for aspiring UK sellers to explore. From the up front franchise fee, to ongoing royalty payments and restocking costs, there are plenty of different variables to take into consideration before you make your choice and sign on the dotted line.
To help make things a little clearer, we’ve broken down the different costs you might be required to cover to help you work out exactly how much it will cost to operate a snack vending machine business via a franchise.
This is the very first figure you’re likely to come across when you’re exploring vending machine companies. The franchise fee is the up front payment you’ll need to make to get on board with your chosen franchisor. You’ll typically make this payment when you sign your franchise agreement, although different companies have different processes and requirements.
At Tubz, our up front payments depend on the number of snack towers you want to operate. Our smallest 10 tower package comes to £2499 + VAT. Our largest 100 tower package comes to £20,995 + VAT. These prices include all machinery and all the stock you need to get started, along with invoice pads, marketing materials and more.
Take some time to explore the range of start up fees out there and ensure you appraise the costs against the quantity and quality of equipment, stock, support and extras you receive.
Another cost you may encounter, which will add to your snack vending machine franchise price, is a royalty fee. At Tubz, we don’t require these. However, many franchisors require a regular ongoing payment from their franchisees – usually a percentage of their profits or a regular, agreed-upon flat rate. Make sure you ask about royalty fees before proceeding with an agreement.
When your snack vending machines run out of treats, you’ll need to fund a restock after your initial batch of merchandise has run out. Your franchisor will usually require you to buy your stock from them or from an approved supplier. The cost of this, again, will vary depending on the snack vending company in question. Be sure to ask about restocking costs before you get started.
In some instances you may need to pay a percentage of your earnings or a flat rate to secure the location of your vending machines. This may be paid to the company which owns the space, or it may be paid to your franchisor which has identified and secured the location for you.
To make life simple for our franchisees and to ensure each spot they work with has the maximum potential, Tubz finds sites for sellers using a 15 point system to find profitable locations. You can read more about this on our business bundles page.
Last but not least, remember, your time is money! So too are things like petrol and vehicle maintenance. While the latter can be offset as tax deductible expenses, it’s important that you’re spending your time profitably.
If we’ve said it once, we’ve said it a thousand times – the snack vending machine business you work with will dictate how much time you’ll spend maintaining and operating your machines. Our sliding scale allows you to choose. Our small 10 machine package will typically take two hours per week to operate. Our largest 100 machine package will take around 20 hours of time each week.
So what do all of these different costs add up to? Well, that depends. Ultimately, it’s time for you to do your research and crack out your calculator. Add up all of the costs listed here for your prospective franchises and you’ll have a figure which should tell you how much your snack vending franchise of choice will cost to buy into and to operate over the longer term.
Ready to research Tubz costs? Take a look at our business bundle page to find out all about our rates. Have any questions? Don’t hesitate to ask our helpful team via info@tubzbrands.co.uk or on 0845 601 900
Are you looking for a franchisee definition? Would you like to know the meaning of a franchise agreement? Are you uncertain what an approved product is? Whichever aspect of franchising you’re unsure about, our quick franchise dictionary has the answers…
Advertising fee
A fee required by some franchises which goes towards advertising costs for the overall franchise. It is typically paid as a percentage of a franchisee’s gross sales.
Approved product
The products selected and approved by the franchise. Franchisees must exclusively buy and sell approved products.
Approved site
A location which has been approved by a franchisor. Franchisees may conduct their business at these sites.
Area franchise
An agreement which gives one franchisee the exclusive right to open and operate multiple locations within a specified area and time period.
Capital required
The amount of money required to buy-in to a franchise. Also known as an ‘initial investment’.
Company-owned location
A location which is owned and operated, not by franchisees, but directly by the franchisor itself.
Exclusive territory
An area which a franchisee is exclusively entitled to operate within due to an agreement with the franchisor. This could be a particular county, a town, a street or even a shopping centre. Also known as ‘protected territory’
Field representative
An employee of a franchise who visits and inspects franchises to ensure they are compliant with the franchise’s overall standards and to offer support or training where required.
Franchise
(N.B. Reaching one clear franchise definition is difficult. A franchise can have many different forms. However, in broad strokes:)
A franchise is a business which allows other businesses to sell products or services under its banner. The businesses which sell these products pay for the right to do so and typically pay a percentage of their profits back to the “parent company” – or franchise. In return, the franchise provides some or all of the following: business structures, marketing, support, training, equipment, stock.
Franchise agreement
A legal document which sets out the relationship between the franchisor and a franchisee, laying out each party’s rights and responsibilities.
Franchise consultant
A business expert who specialises in providing advice and guidance to both franchisors and franchisees on everything from smoother working processes, to marketing.
Franchise fee
A flat payment made by the franchisee to the franchisor, usually as a “buy in” and typically paid when the franchise agreement is signed. Regular royalty payments may also be paid for the duration of the business relationship.
Franchisee
An individual or company which buys into a franchise and works to operate the business in one or more locations, always subject to the franchisor.
Franchisor
The parent franchise itself – or those who operate it.
Initial investment
The full cost of setting up a new business under the franchise including franchise fees, inventory costs, legal fees and numerous other startup costs.
Key supplier
The chosen supplier of the franchisor. Franchisees must use this supplier to restock and purchase supplies as specific pricing and availability has been negotiated by the franchisor.
Master franchisee
A franchisee who has an agreement with the franchisor allowing them to sub-franchise to other franchisees, usually in one designated area.
Product (tradename) franchising
A common type of franchising which allows franchisees to sell products or services using the franchise’s name, logo and trademark. This type of franchising doesn’t force franchisees to use a particular type of structure to deliver the product.
Royalty fee
A regular fee paid by a franchisee to the franchisor, usually a percentage of gross sales, but this may also be a flat, fixed fee. Not required by all franchisors.
Successor Agreement
An agreement allowing a franchisee to continue trading under the franchise name after they have successfully completed their first period in the business.
Turnkey
A fully-equipped location laid on by the franchisor for the franchisee to operate which is “ready to go” (they only need to turn the key!).
Do you have questions about any of our franchise definitions? Perhaps you’d like us to add another term to our franchise dictionary? We’re here to help. Explore our website to see franchising in action or talk to our team about your options today via info@tubzbrands.co.uk
Are you looking for a new challenge, the chance to be your own boss or a flexible side earner you can slot into your schedule? Sweet vending franchise opportunities can be found right across the UK and can be developed into the business or professional next step you’ve been looking for – whatever your goals might be.
Today we’re going to be exploring what these franchise business opportunities involve, who they are a good fit for and what you need to get started.
Let’s start with the basics. Sweet vending franchise opportunities can come in a range of shapes, sizes and styles. From upfront costs, to ongoing payments, there is a lot of variation from opportunity to opportunity, but the basic principle remains the same:
A franchisor (just like Tubz) enters into an agreement with a franchisee (that could be you!) which allows the franchisee to operate the franchisor’s products, structures, equipment, marketing and/or locations. This means that the franchisee can generate revenue by installing and maintaining sweet vending machines in their area.
This franchising agreement typically calls for an upfront payment to the franchisor to get the ball rolling (you can take a look at our costs here) but our structure allows franchisees to keep all of the subsequent profits they generate. Some franchisors will take a percentage each month, others will have ongoing maintenance fees – the structure will vary from franchise to franchise, so make sure you read the small print.
Franchisees will usually be responsible for restocking and maintaining the machines, in some cases they will also be responsible for identifying and arranging new locations. The workload you face and the profits you make will depend on the number of machines you franchise. As comparatively cheap franchise opportunities, sweet vending franchising is easy to get started with and easy to grow into a bigger network of machines.
The beauty of these low cost franchise opportunities is that they are incredibly flexible. Some franchisees take on just a couple of machines which require just a few hours of work each week. These hours can easily be fitted around a hectic schedule (perfect for busy parents) or can provide a small supplementary income ideal for retirees.
Other franchisees love the idea of being their own boss but may not have the capital to launch a startup or invest in a more substantial franchise, or may not want to take the risk on their own. Cheap franchise opportunities like this give such individuals the affordable kick start they need to grow their own endeavour into a full time, self-employed role.
Vending franchise opportunities are also a great fit for entrepreneurial spirits who may not have the experience to embark on a more significant venture. Working with a vending franchisor gives you access to their many years of experience, a community of franchisees, plus ongoing training and support which allow you to “learn the ropes” from the ground up and gain experience yourself
Ultimately, this type of opportunity is what you make of it. Flexible and affordable, franchisees can use their new enterprise to develop a steady supplementary income, build something bigger or work towards their next entrepreneurial step. Which path will you take?
Interested in getting the ball rolling? It’s time to appraise the sweet vending franchise opportunities out there and to invest. Make sure you do your homework before you put your cash on the table. As we mentioned in our introduction, no two franchises are identical, so it pays to know crucial details like:
– Upfront costs
– Ongoing costs
– Maintenance costs
– Restocking costs
– Restocking frequency
– Whether sites are included in your deal
– Training availability
– Who you’ll be working most closely with
– Opportunities to expand
Would you like to learn more about how vending franchising works or take a closer look at our structure here at Tubz Vending? Explore our website or talk to our team today via info@tubzbrands.co.uk
Do you think you’ve found the vending franchise you’ve been searching for?
Whether you’ve stumbled across the opportunity out of the blue or have been hunting for the right franchise opportunity for months, it’s important to conduct a thorough vending machine franchise review to find out if it’s suitable for you, before you jump on board and make an investment.
In this article we’ll be sharing some top tips which will help you perform smarter franchise reviews of vending machine companies, whether they’re little known, new on the scene or listed among vending’s top 10 franchises (just like us here at Tubz!).
Going into business as a franchisee is all about taking charge and building your own future but, at the end of the day, everything boils down to money. That’s why costs should be the very first aspect of the prospective vending franchise you review.
The initial investment you’ll need to make may not be all you’ll pay. In some cases you’ll need to cover costs including:
– Restocking costs
– Service maintenance costs
– A percentage of your profits
Before you jump into a franchise, make sure your prospective franchisor has shared details of every cost with you. Then compare these against the cost of other, similar franchises to ensure you’re getting a good deal.
Don’t forget to check out estimated profits and to confirm these with current franchisees too. (You can find out all about our costs and predicted profits here.)
Testimonial of Tubz franchisee David Rose
Hearing it straight from the horse’s mouth is one of the very best ways to gain insight into a vending franchise you’re considering investing in, whether it’s a relatively small vending machine company or one of the industry’s top 10 franchises.
Take a close look at testimonials pages and reviews written by franchisees to get a better understanding of how franchisees are treated by the franchisor, how the franchise structure works, whether or not profits are accurate and much more. If a vending franchise doesn’t offer testimonials, this could be a red flag.
We share views and insights from our franchisees on our testimonials pages, and you can also find success stories from current operators on our blog.
Of course, testimonials can be cherry-picked and may not represent every franchisee’s experience. Performing a quick Google search is a good idea as this could flag up any negativity which exists online and give a more balanced picture. If possible, ask your prospective franchise if you could meet or talk with a current franchisee to get the inside scoop.
The final part of any reviews you conduct should focus on the franchise itself – and the people representing your franchisor.
Will you get along? Will you feel supported by them? How accessible are they?
The answers to these questions could all make a big difference to your success and happiness in the franchise.
Ask your potential franchisor to list the individuals you’ll have the most contact with and ask to set up a conversation or a meeting so you can get to know them a bit better before diving into a potential long working relationship. Good support is vital if you’re entering the business world with a new enterprise, even if the business model has a proven track record.
If you conduct thorough research, get feedback from current franchisees and ask franchisors lots of questions, you will be in a great position to choose a winning vending machine franchise.
Have you reviewed Tubz Vending using these steps? If you think our vending machine franchise could be a great fit for you, we’d love to talk. Please contact our team today on: info@tubzbrands.co.uk or 01795 414 480.
Who wouldn’t want to work from home? No painful daily commute, no infuriating desk mates, no distracting chit chat or other people’s awful music choices, the exact kind of biscuits you like and no need to dress “smart casual”. If this sounds like paradise to you, it may be time to start exploring home based franchise opportunities.
Of course, working from home isn’t all a dream come true. You’ll need to motivate yourself every single day and fight to avoid the urge to procrastinate. You’ll also need to be your own boss, ensuring you hit your targets and get the legwork done. But for motivated individuals ready to work for themselves in the comfort of their own home, home franchises can be a fantastic fit and boost your quality of life.
Whether you’re a mother looking for low cost home based franchise opportunities you can run flexibly during the hours your youngsters are at school, or a professional who’s simply tired of the rat race, we’ve compiled some helpful information on work from home franchises to help you explore your options.
Beauty, food, marketing, fitness, accountancy – the array of sectors you can go into as a franchisee is virtually endless. However, for those interested in working from home, the options are slightly narrower. While it’s always possible to take work home from “the office”, many franchises require sales premises and involve managing an on site team (restaurants, nail bars, you name it).
The best types of franchise for an individual keen to work from home include:
– Service driven franchises (digital marketing, tax accountancy etc.) which do not require in person meetings and can be operated online. Although running meetings from home is possible, it does not always translate as professional. Look for a home based franchise which allows you to Skype and call from home to do business.
– Part time franchises are often more suitable for home workers. That’s because they frequently (though not always) call for a lower level of commitment and can be squeezed into your existing schedule. You’ll need to choose your part time franchise carefully however, businesses like a food van will certainly take you outside the comfort of your own home, but things like paperwork, promotions etc could realistically be completed at your own property.
– Low cost franchises are comparatively easy to get off the ground and frequently involve far fewer burdens in terms of premises, equipment, storage space and contact with clients. At Tubz, our affordable rates, plus tried and tested formula set franchisees up with flexible businesses they can run from home, on a basis which fits around their lifestyle, whether they’re ready to build an empire or simply want to increase their overall earnings.
Once you’ve decided on the type of franchise you’d like to run from home, it’s time to begin your hunt for appropriate options for you. Make sure you go into this process with your budget firmly in mind to ensure you invest in an opportunity you can afford.
There are plenty of places to search for a home based franchise. From specialist publications like Franchise World and The Franchise Magazine to, you guessed it, the internet. The web is the best place to find your ideal home-working franchise, but exercise caution, not everything online is all it appears to be…
Make sure you have an opportunity to talk to current franchisees and find out what other franchisees have to say about their experiences. At Tubz we publish our testimonials online so you can get a feel for how our franchisees operate and what they think about their vending franchise.
Would-be franchisees should also perform thorough due diligence (you can search for potential problems and suspicious dealings by checking with Companies House). This is a great way to find out a lot about a company, from how financially stable it is to how long it has been operating.
Have you decided that franchise work from home could be a great next step for you? We’d love to tell you more about our flexible vending franchise. For more information and a no obligation chat, please contact us via: info@tubzbrands.co.uk or on: 01795 414 480.
