Click4Assistance UK Live Chat Software
Should I become a franchisee?

Should I become a franchisee?

primate-1019101_1280

People come to franchising from all walks of life. For some, it’s the first step on the road towards entrepreneurship. For others, it’s an opportunity to be their own boss. Some franchisees enter the role with the goal of generating additional income through a flexible system they can fit around their lifestyle. (more…)

Sweet tower vending machines – The business for you?

Sweet tower vending machines – The business for you?

Tubz Tower Original
Are you ready for a professional change?

Whether you’re daydreaming about retirement but want to ensure you have extra income, fantasising about building your own business empire or itching to get out of the office and become your own boss, vending machine franchises present flexible and workable next steps.

Completely scalable to suit your lifestyle, sweet tower vending machine franchises (like our packages at Tubz) can generate as much as £72,200 gross profits per annum, or take up as little as 2 hours of your time per week, depending on your goals and resources.

You can find out more about our potential profits, and what you might be able to expect to earn on our business bundles page.

So is vending the business for you?

unnamed

At Tubz we work with an incredibly diverse range of individuals. Our franchisees come from all over the UK, from all backgrounds, of all ages, with completely different professional experiences; from stay-at-home parents and eager young entrepreneurs, to retired individuals and tradespeople seeking flexible additional income. That means vending machine franchises are the business for everybody!

There are, however, a few practical requirements that will affect your suitability:

– Transportation

In order to visit your vending tower locations in order to check and refill machines, you will need to have access to a vehicle that is also able to transport your vending towers.

– Time

At least two hours a week are required to maintain our smallest vending franchise option. Many of our franchisees choose to spend considerably more time on their franchises, but this is completely up to you.

– Storage space

Depending on the number of sweet vending machine towers you choose to operate, you may need space to store machines that are not yet at sites.  

If you have transportation, time and a little storage space, vending machines could well be the business for you. But aside from practical considerations, there are some personal attributes which may make this business a better fit for you:

– Motivated

Some Tubz franchisees have been self-employed for decades, others are totally new to working for themselves. Whether you have experience being your own boss or not is unimportant, what really matters is that you’re driven to make your sweet vending machine business a success and will stick at it until it is!

– Organised

Our smaller packages are relatively simple to organise, but at the other end of the spectrum, with 100 towers to keep topped up and locations to monitor, organisational abilities will become crucial to your success.

– Independent

Your vending machine towers are your responsibility, which means you need to be prepared to take initiative. If a location isn’t performing well, raising this with your franchisor is crucial. If you’re selling out faster than anticipated, it’s down to you to expand your business. Rest assured though that the Tubz team do offer support on an ongoing basis, so if you have issues, new goals or want to built your empire further, get in touch.

Do you think Tubz sweet tower vending machines could be the right next step for you? We’d love to show you a little more of what we do. To find out more about our system, rates and bundles, explore our website or get in touch today via info@tubzbrands.co.uk or on 0845 601 900.

How do vending machine businesses work?

How do vending machine businesses work?

Are you interested in running a vending machine business?

ishigaki-island-1276561_1280

If you’ve been exploring this option, you’ve probably been attracted by low startup costs, the opportunity to be your own boss, the chance to dictate your own schedule, the idea of growing your own business however you’d like, and the thought of solid profits whether you’re putting in a few hours a week or going full time.

There’s a lot to like about going into the vending machine business, which makes the enterprise a promising one for people from all backgrounds and walks of life. So how can you get started and what do you need to know before you take the plunge?

In this blog we’ll be explaining how franchises work and how vending machines make money using this structure, taking you from your first investment to your first annual profits.

How does a franchise work?

what-is-a-franchise_-tubz-google-chrome-2016-10-17-15-57-19

A franchising system is how the vending machine business works in most cases. A franchisor is a company with its own products, its own branding and its own processes, which sells the opportunity to use all of these assets to franchisees – that could be you!

This approach allows businesses (like Tubz Vending Franchise and many others, including international names like McDonalds) to grow an ever-bigger brand and expand across counties, countries and even continents with less risk and expense.

The system offers benefits to the franchisee too. The individuals who buy into the franchise can walk into a ready made brand and business, taking advantage of its established reputation and materials, from marketing resources to supply chains.

Franchisees typically pay a one-off buy-in fee to franchisors, then a range of payment systems can be applied. In some cases, franchisors will take a percentage of annual profits, in others a flat monthly fee is required. How this works will vary widely from franchise to franchise.

How do vending machine businesses work?

Which vending machine is most profitable?

So how does this structure apply to vending machine franchises? Again, there is a lot of variation in the market, but here at Tubz Vending Franchise, we operate the following system:

1. Franchisees select the business bundle which fits their budget and availability. These bundles start at £2,499 + VAT, with sizes ranging from 10 to 100 vending towers. The time investment required starts from just two hours a week and every bundle comes with all of the equipment and resources you need to get up and running.

2. You install your towers at local sites in post codes agreed between you and Tubz Brands. We have a comprehensive database of potential profitable locations and arrange commission either directly with the premises owner or via our corporate Charity partner the ‘Starlight Children’s Foundation’ – and we have already raised £270,000.00 for them.

3. You start operating your franchise and selling treats! From restocking machines and monitoring profitability, to ensuring presentation is good and arranging maintenance, running a vending franchise is pretty straightforward. Should you have any issues, the Tubz team will be on hand to help, whether you need to buy more stock, or are concerned that a location isn’t performing profitably, or you want to expand!

4. Make sure you keep your towers topped up, rather than waiting until they are empty. This will prevent you from losing sales and ensure your machines look as enticing as possible to customers. So make sure you visit regularly and keep on top of your vending round. You’ll need to buy a new batch of stock at our low rates, exclusive to franchisees. If you’re selling well, you may even decide to add more machines to your enterprise at this point to boost profits even further.

5. You make money. Now that your vending machine franchise is up and running, it’s time to keep track of your sales. With our smallest 10 tower bundle, just 10 weekly sales will generate £5,200 in turnover annually, leaving franchisees with a very respectable gross annual profit of £2,340 (Profit is the amount of “take home” money you’ll be left with after commission and stock costs are deducted from your turnover). Our larger bundles provide the opportunity for much more substantial profits up to £72,200.

6. Did you know that more than 90% of new business startups fail in the first year of trading, with vending bucking that trend. This is because there are no bad debts and you don’t have to wait months to build up a client bank to call upon – you earn cash from day one!

Vending business variations

Untitled

As we mentioned previously, not all vending machine businesses work the same. Some may charge a monthly, quarterly or annual fee. Others may take a more substantial overall commission on profits.

To find out more about how each vending machine business works, make sure you research fees closely and talk directly to a potential franchisor before going ahead. Tubz Brands don’t charge a penny more after the initial purchase of your business bundle.

Would you like learn more about how our franchise works? The Tubz Vending team works right across the UK and we’re always looking for new franchisees to help us grow even further. To find out more about our system, rates and bundles, explore our website or get in touch today via info@tubzbrands.co.uk or directly on 0845 601 900.

Do vending machines make money?

Do vending machines make money?

If you’re looking for a new source of income, you may have considered the idea of buying a vending machine franchise.

japan-682010_1280

On the surface of it, this type of money spinner looks pretty solid as a fresh direction to branch out in.

It’s a flexible way to work, you can keep the enterprise small or grow an empire, you’re your own boss, the initial investment is modest and your success will depend on commitment and drive rather than experience. And the system also allows you to develop business experience in spades.

So far so good. But what about that all important question? Do vending machines make money?

Can you make money with vending machines?

The short answer here is: “Yes”.

currency-1018220_1280

Many new franchisees make a profit from vending machines. The longer answer is: “Yes, but…”.

That’s because, although vending machine profits are typically dependable, the success of an enterprise like this will vary according to the commitment of the franchisee.

Although vending machine franchises are some of the most low maintenance out there, machines can’t simply be left to do their job indefinitely. Ensuring each machine you operate is generating its maximum possible profits means:

– Monitoring the performance of each machine in each location

– Checking in to ensure the cleanliness and operation of each machine

– Ensuring each machine is fully stocked to make sure they look enticing

– Noting which products sell best at which locations and adjusting quantities accordingly 

– Raising red flags with your franchisor if sales are lower than expected in specific locations

– Being proactive in your approach

Ticking all of these boxes will help ensure that your vending franchise makes money and that you see a return from your investment.

Many vending machines will generate a passive income with less input, but the most successful machines will be operated by engaged, organised and proactive franchisees who really stay on top of their small business.

How can you find the best sites?

map-455769_1280

At Tubz we have a dedicated site finding department with over 12 full time, qualified staff who call upon their vast experience in finding suitable sites from our huge database and list of professional contacts.

These are all handpicked for that particular new franchisee. This gets your new business off to a flying start and ensures you start earning cash from day one.

How much money can vending machine franchises make?

business-17610_1280

Now we’ve established that vending machines do indeed make money, it’s time to discuss how much money franchises like this can make.

To do so, we’ve turned to our business bundle page to help us demonstrate the potential returns of a vending franchise. Please note that these profits are specific to Tubz Vending towers.

Here are our projected annual turnovers and gross profits based on 10-100 machines selling 10-30 Tubz per week. Even with just 10 weekly sales (just over 1 sale per day) from 10 machines, annual profit can be an impressive £2,340. At the other end of the spectrum, extremely active franchisees with 100 machines selling 30 Tubz per week could see profits of £72,200 per annum.

Towers10 Sales Per Tower Per Week20 Sales Per Tower Per Week30 Sales Per Tower Per Week
10£5,200£10,400£15,600
25£13,000£26,000£39,000
50£26,000£52,000£78,000
100£52,000£104,000£156,000

Are vending machines a profitable option for you? Would you like to find out more about how our franchise works? We’re here to help. Get in touch today via info@tubzbrands.co.uk or call us directly on 0845 601 900.

How much is a snack vending machine franchise?

How much is a snack vending machine franchise?

how much is a snack vending franchiseAre 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.

The franchise fee

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.

Royalty fees

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.

Restocking costs

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.

Location costs

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.

Time & expenses

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.

The grand total

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

Franchise definition & other essential terms

Franchise definition & other essential terms

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…

What is a Franchise_ - Tubz Vending Franchise - Google Chrome 2016-08-19 17.13.21

THE FRANCHISE DICTIONARY

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