Operating under a recently granted 10-year (renewable) franchise agreement, this fabulously appointed coffee shop in an affluent North West London suburb is keenly priced for a quick sale.
Our client purchased the franchise to form part of a diverse multi million-pound portfolio of franchised and non-franchised businesses. However, as a result of a change of corporate strategy, it has been decided that this unit will be offered for resale.
The business is run entirely by staff with a full-time manager. However, the business can be made available free of TUPE obligations if required thus allowing an owner manager to operate the business personally.
Competitively priced against a brand-new franchise, yet only 6 months old. The business offers a saving of circa £50,000 and is fully fitted to a very high standard for immediate operations.
Our client owns the freehold of the premises and a new 10 year lease with a 5 year break option is offered at an annual rent of £35,000 with business rates payable of £13,400.
A recent energy performance certificate is available. An outdoor seating licence is already in place and the unit holds a compliant EHO rating.
Full training will be provided by the outgoing franchisee, along with an immersive franchisor led training and induction course at their London training centre. Ongoing franchise support is internationally recognised.
The business operates as a coffee shop selling light snacks and baked goods during the following hours:
Monday to Friday 8am to 5pm
Saturday and Sunday 9am to 7pm
Scope exists to extend trading hours further.
The franchisor has a unique business format, where alongside the coffee shops. 3D cakes are baked on the premises and can be completed for takeaway or delivery in under 10 minutes. The management service fee payable under the franchise agreement is 7% of sales.
Well established, the franchisor is an international brand with over 450 franchised units operating including 50 sites either trading or under development in the UK. Its recipes are award-winning on a global scale.
The business comes with an existing digital presence, including a Shopify website and Google and Meta advertising accounts already set up with conversion tracking, so a new owner can continue driving customers from day one.
Despite that the business is very recently established; sales are strong and on track towards £7,000 per week. Under owner management, there is potential to increase sales considerably whilst at the same time reducing staff overheads.
Clear growth levers exist, including delivery apps, social media advertising and influencer partnerships, as well as cake orders, parties, events and catering.
Gross margins are 75% and when run by an owner manager net margins of 20% are forecast.
