Sweet Factory Franchise


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Sweet Factory Franchise

  1. 1. Kyle Colford-Clayton Charlotte Smetanka Tyler Lawrence
  2. 3. <ul><li>The Franchise is in the Candy Industry, selling candies, chocolates, candy-related gifts and services such as wedding, office, and birthday customized packages. </li></ul>
  3. 4. <ul><li>Sweet Factory, an unique franchise? </li></ul><ul><li>A candy store </li></ul><ul><li>Bright, colourful, fun to shop stores </li></ul><ul><li>One-price format </li></ul><ul><li>Colourful self-served bins </li></ul><ul><li>well- conceived merchandising planners </li></ul><ul><li>Store design adaptable to multiple locations, such as malls, kiosks, airports, sports arenas, entertainment centers, and more </li></ul><ul><li>store appeal to kids (and adults!) of all ages </li></ul>
  4. 5. <ul><li>T he best-financed bulk candy specialty retailer in the country </li></ul><ul><li>Known as the best selection of the most in-demand candies, including bulk, count goods, candy-related gifts, sugar-free and kosher products.  </li></ul>Why is Sweet Factory Popular?
  5. 6. Franchise Logo and Slogan Sweet Factory, “ America’s favorite Candy Store” “ THE Candy Authority”
  6. 8. Start up <ul><li>Initial Franchise Fee: $35,000 </li></ul><ul><li>On-going Royalties: 6% </li></ul><ul><li>Advertising Fee: 1 ~ 2% (if applicable) </li></ul><ul><li>Minimum Net Worth: $1,000,000 </li></ul><ul><li>Liquid Assets: $400,000 </li></ul><ul><li>Term of Franchise Agreement: 10 years, with two subsequent successor options of five years each </li></ul><ul><li>The estimated initial investment for a Sweet Factory franchise ranges from $355,500 to $1,500,000 </li></ul>
  7. 9. <ul><li>Assistance for selecting a location is provided, based on: track record of mall, demographics of trade area, comparisons of other impulse and snack tenants’ sales, traffic counts, visibility and competition. </li></ul><ul><li>Assistance is given to floor plan design, for each specific location. All design plans and specifications follow in accordance with the Franchise Agreement. Standard plans and specifications for a prototype store, including exterior and interior design and layout, fixtures, furnishings, and signs are made available. </li></ul>
  8. 10. <ul><li>Sweet Factory is committed to providing a hands-on, extensive 6-week Owner/Manager-in-Training Program that covers the following subjects: customer service, store standards, store organization, POS training, opening and closing, employee scheduling, merchandising, project management, office administration, physical inventory, and much more. </li></ul>
  9. 12. Partnership <ul><li>Tyler will have 20% </li></ul><ul><li>Kyle will have 50% </li></ul><ul><li>Charlotte will have 30% </li></ul><ul><li>Charlotte and Kyle will run the business as active owners. Tyler is only an investor. </li></ul>
  10. 13. Investments <ul><li>Tyler: $300,000 </li></ul><ul><li>Kyle: $750,000 </li></ul><ul><li>Charlotte: $450,000 </li></ul><ul><li>Kyle will act as the active owner, representing the venture. </li></ul>
  11. 14. <ul><li>Kyle will maintain the majority of the company. Charlotte will act as store manager when Kyle is conducting business at another location. </li></ul><ul><li>As this does not happen regularly, her other responsibilities would include managing inventory, customer service, human resources, and personal relations. </li></ul>
  12. 16. Brands <ul><li>Haribo </li></ul><ul><li>Hershey </li></ul><ul><li>M&M </li></ul><ul><li>Mars </li></ul><ul><li>Nestle </li></ul><ul><li>Wonka </li></ul><ul><li>Pez </li></ul><ul><li>Pop Rocks </li></ul>
  13. 17. Product Variety
  14. 18. Variety cont.
  15. 20. Employee Info. <ul><li>Part time employment. </li></ul><ul><li>Long and short term employment. </li></ul><ul><li>Store hours include: </li></ul><ul><li>9am-9pm, Monday – Saturday </li></ul><ul><li>Employees make minimum wage, with a raise every 3 months, of $.10 </li></ul>
  16. 21. <ul><li>There are about 18 employees, including management, but not owners. </li></ul><ul><li>Employees will undergo regular checks, and if need be, fired. </li></ul><ul><li>New employees will be hired promptly. </li></ul>
  17. 22. <ul><li>The information provided by the website was informative, and clear enough to allow for someone to start a franchise. </li></ul><ul><li>The website is clear in the function of the business. The franchise sells candy, chocolate, gifts and toys (candy related), and pillows. </li></ul>
  18. 23. <ul><li>The company does not directly interact with the community. It tries to connect, by providing flawless customer service. </li></ul><ul><li>A method in which Sweet Factory is socially conscious, is that it is very cautious of allergies. </li></ul>
  19. 24. <ul><li>The franchise provides an environment which is appealing to a potential franchisee. </li></ul><ul><li>The company does a very good job in providing information about the franchise opportunities, and the details about what a franchise could end up looking like. </li></ul><ul><li>The diversity in stock also makes the franchise appealing because the wide range of people who would want to purchase goods. </li></ul>
  20. 25. Skills Needed <ul><li>The skills which would be most demanded by the operation of the franchise include: Statistical analysis, human relations, sales, and records keeping. </li></ul>