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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.

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