The initial investment include franchise fees which will vary according to the type of agreement and the country. Excluding real estate or lease, the necessary investment for an average high-street shop is approximately 95,000 € in France. Construction and shop fit-up costs depend gretly upon the state of the shop at purchase. For a shopping center, construction and fit-up costs can be from 130,000 to 210,000 €, excluding real estate and entry fees
A shop's turnover will depend upon wether it's located on a high-street or in a shopping center. For example in France, a high street shop can generate income from 180,000 to 700,000 € mix a product mix of chocolate, dragrées and ice cream. A store in a shopping centre with the full range of chocolate, dragées, ice cream and pick-and-mix sweets can have sales from 250,000 to more than 1,600,000 €.
A number of factors must be taken into account. First of all, gross margins for chocolate and dragées can reach almost 55%, and beyond for ice cream depending on the system used. Secondly, the low level of stock required prevents cash from being tied up in unproducive, dormant stock. The turnover of stock is therefore high, there are no mark-down or sale periods necessary and there is almost no loss due to spoilage or breakage.
We have been members of the Franch Franchise Federation since 1988. This memberhip is important to us since the role of the F.F.F is to inform and to guide future franchees as well as to enforce the code of ethics of the profession. In addition, our franchise contract has been given approval by the Federation. Renewable every five years, the contract states the obligations of both partners who enter into the agreement and in particular what Jeff de Bruges is required to provide to the franchisee. It also defines the boundaries of the exclusive territory awarded to the franchisee.
We run two campaigns, one at Christmas-time and the other at Easter. There are, of course, key periods for our sales and our presence must be high on television, on the radio and in the press. We also organise in-store campaigns and provide franchisees with promotional kits including catalogues, posters, and POS advertising.
Today Jeff de Bruges is the leading brand in France with 89% brand awareness accoring to a survey carried out by TNS-SOFRES in JanuDecember 2015.
Naturally, since the choice of location is of fundamental importance. To ensure success, the choice of location must be in perfect harmony with our products and our target market. We look for locations in the mid to upscale high street location with high pedestrian traffic in towns with a population of over 20,000 as well as locations in shopping centres.
Absolutely. Our architectural design firm ensures the integrity and cohesion of the concept for the entire network. The draw up plans for each project individually. The approved layout is made available to each franchisee's shop fitter allowing him or her to apply for the necessary permits and to proceed under his or her own responsibility. Our architectural design firm validates the final specifications. The franchisee is of course free in the end to choose the shop fitter.