What's the Investment Going to Be?
So you've decided you want to join the excitement at United. You're probably wondering what it's going to cost you... below is a guide on some of the key cost considerations.
Initial Investment usually starts upwards of $450,000 and comprises of the following:
- Franchise Fee - this is for the Franchise Agreement that lasts for 12 years which consists of an initial term of 6 years then the option of another 6 years. *
- Goodwill Fee - this varies from site to site depending on individual shop performance.
Start-up Costs to consider are:
- Initial stock when you purchase the franchise
- Fuel Bond Security
- Working capital (cash flow)
On-going Costs to United consist of (but are not limited to):
- Royalty/Rent – charged daily as a fixed percentage of your overall shop sales
- Fees on service provisions (Equipment Support, Insurance, Software Support)
United provide the following upon commencement (what you don’t have to outlay for):
- Fuel – United place and deliver all orders of fuel and accordingly all franchisees are paid a commission on all fuel sold
- Site Operating Equipment (pumps, cool room, console POS, computers etc)
- Shop fit-out (all shelving, stripping, counter tops, signage, lighting etc).
* as of July 1st 2011