ShakeAway Franchise Information Pack (1)

the original re-inventors of the MilkShake

ShakeAwayThe world’s largest MilkShake bar companytmand the original re-inventors of the MilkShake

The originals since 1999

An Introduction to ShakeAway Franchising

What Does Franchising Really Mean?

Brand • Support • System • Agreement • Financials

Questions You Need To Consider About Any Franchise Business Format

How Much Does It Cost?

What Next?

Becoming a ShakeAway FranchiseBecoming a ShakeAway Franchise

ShakeAway WorldwideLtd (Franchising), 7 Post Office Road, Bournemouth, Dorset, BH1 1BB

ShakeAway ® • © ShakeAway Worldwide Ltd. • Company Registration 07500524



A ShakeAway Franchise?

There are few businesses which really capture the imagination. Which really get discussed. Which truly inspire interest. Which get talked about, be it at home, at work, at school or on web blogs. The “water cooler” topic.

ShakeAway is one of those rare businesses. The original MilkShake business.

TheThe concept of “ShakeAway MilkShakes” was invented in Bournemouth, Dorset in 1993. Making 30 flavours of milkshakes for six years as part of a Café Bar, the product range was expanded to suit our target market of customers aged seven to late twenties and redesigned for the takeaway market and the UK’s first MilkShake shop. ShakeAway was born in 1999 and a new market sector had been created.

TheThe following few years saw ShakeAway expand its range of MilkShake flavours, perfect the product range, create an extremely loyal cult following and develop a strong future. Now with the recent financial backing of two entrepreneurs, who truly understand the development of the ShakeAway business and brand, this new structure brings greater support, major expansion, growth plans and new & exciting marketing methods.

ShakeAway may have many copy cats, but none of them do as well as we do and no one else has as many stores or has the assurance of being the biggest and ‘The Original Re-Inventors of The Milkshake’ as ShakeAway.ShakeAway. We have the biggest marketing and promotional spend to drive footfall, with celebrity tie ins, movie launches and more.

ShakeAway is well-branded with a striking image in both visual and atmospheric senses. The ShakeAway images are trademark-protected both in the UK and internationally, and the ShakeAway Cup has now become a recognisable “icon”, a valuable identity and a walking advertisement.




ShakeAway is not just a summer business, but also has strong sales in non-summer months with a large range of

hot milkshakes and other drinks.

The comprehensive website at ShakeAway.com (average 20,000 visitors per week) gives an understanding of the

cultureculture and attitude, together with giving the ShakeAway Customer a sense of belonging. With interactive pages and

areas specifically dedicated to Customers, ShakeAway fans become a part of “ShakeAwayLand”. The many photos

submitted by Customers who take their ShakeAway Cup for photo opportunities around the UK and the World

shows the loyal following ShakeAway has achieved.

WithWith countless school, college and University business or design projects based on ShakeAway, coverage in regional &

national press and on radio and TV, a ShakeAway Loyalty Card (VIP Royalty Card) and Fan Club database of over 30,000

self-subscribed members plus the popular ShakeAway official Facebook and Twitter groups (with over 50,000 fans),

the interest in all things ShakeAway starts to speak for itself. There are scores of “unofficial” ShakeAway Facebook

groups created by Customers and fans.

ShakeAway MilkShakes, marketing ideas and PR continually evolve to maintain interest. Currently with over 150

flavoursflavours of MilkShakes, hot MilkShakes and other products, all ShakeAway shops continue to develop and benefit from

the strength behind a successful brand. Major brands have tie-ins for joint promotions as they also recognise the

strength of ShakeAway, with recent ventures including Momentum Pictures, Dave TV, Primeval, Topdeck, magazines such

as Best, Bliss, Reveal, Mizz and Loaded, plus many more high profile brand partners including Tesco Clubcard. We have

launched a ShakeAway iPhone App (with over 20,000 downloads in the first two months and hitting the App Charts),

along with our very own ShakeAway song ‘Shake it.’ As well as this we are soon to launch ShakeAway TV, alongside

ShakeAway Radio and ShakeAway Records.ShakeAway Radio and ShakeAway Records.

The interior of the shops are bright, colourful, professional and fun, with a process which is simple for Customers to understand. Proven management systems make even the busiest days run smoothly. Trained and motivated shop staff are supported by a management team to keep the business developing and growing in brand, strength, popularity and income, using the same ethics as when there was just one shop.




After growing and piloting nine ShakeAway shops in different types of towns, cities and shop units, franchising

began in 2007. ShakeAway is growing with both Franchised and Company-Owned outlets. Franchisees opening

multiple outlets of their own clearly indicates their satisfaction with ShakeAway Franchising.

ShakeAway also has begun international franchising opening in Abu Dhabi and Dublin, with greater

expansion and growth plans worldwide.

A Franchisee runs a shop which is uniformed with others, whilst it benefits from the community of fans and A Franchisee runs a shop which is uniformed with others, whilst it benefits from the community of fans and

becomes part of the established ShakeAway brand. Experience is not required, but hard work is. A franchisee

realises the risks of self-employment, is able to manage staff, adhere to business-wide system, and can feel

fulfilled and inspired by reaping the benefits of one’s own efforts. ShakeAway is both a fun and serious

business and could become a great family business. It has a history and a future. We are the original

re-inventors of the milkshake and the world’s largest milkshake bar company.

A ShakeAway Franchisee is supported along every step of the way by the experience of the ShakeAway Franchisor Team. This includes support from us with property selection, lease terms, legal’s, store design, equipment requirements, building footfall promotions, fit-out, staff recruitment, full training for the Franchisee and their employees, then ongoing support by a dedicated Regional Manager and our Finance Team.




What Is Franchising?

With ShakeAway being the Franchisor and you being the Franchisee, what does this really mean?

“The“The owner of a business (the Franchisor) grants a licence to another person or business (the Franchisee) to

use their business idea - often in a specific geographical area. The Franchisee sells the Franchisor's product or

services, trades under the Franchisor's trade mark or trade name and benefits from the Franchisor's help and

support. In return, the Franchisee usually pays an initial fee to the Franchisor and then a percentage royalty

on sales. But the Franchisor keeps control over how products are marketed and sold and how their business

idea is used. Well-known businesses that offer franchises of this kind include Prontaprint, Dyno-Rod, Burger

King and Your Move”. King and Your Move”. Source: www.businesslink.gov.uk

The British Franchise Association explains....

Business format franchising is the granting of a license by one person (the Franchisor) to another (the

Franchisee), which entitles the Franchisee to trade under the trade mark/trade name of the Franchisor and to

make use of an entire package, comprising all the elements necessary to establish a previously untrained

person in the business and to run it with continual assistance on a predetermined basis.

The principle is simple - some companies choose to grow, not by developing in the conventional way, but by

granting a license to others to sell their product or service. There are clear advantages to this:

You don't have to come up with a new idea - someone else has had it and tested it, too!

Larger, well-established franchise operations will often have a solid trading name.

Good Franchisors will offer comprehensive training programmes in sales and indeed all business skills.

Good Franchisors can also help secure funding for your investment as well as discounted bulk-buy supplies for

outlets when you are in operation.

If aware that you are running a Franchise, customers will also understand that you will be offering the best possible

value for money and service - although you run your 'own show', you are part of a much larger organisation.




Who is in Control?

Each business is owned and operated by the Franchisee.

However, the Franchisor retains control over the way in

which products and services are marketed and sold, and

controls the quality and standards of the business.

What are the Cost Implications?

The Franchisor will receive an initial fee from the Franchisee, payable at the outset, together with on-going The Franchisor will receive an initial fee from the Franchisee, payable at the outset, together with on-going

royalty fees - usually based on a percentage of annual turnover or mark-ups on supplies. In return, the

Franchisor has an obligation to support the franchise network, notably with training, product development,

advertising, promotional activities and with a specialist range of management services.”

Source: www.thebfa.org

It is widely considered that a business is suitable for a Franchise if it offers the following:

Brand • Support • System • Agreement • Financials ••

Does ShakeAway offer these five key ingredients? Read on.....Does ShakeAway offer these five key ingredients? Read on.....




Brand • Support • System • Agreement • Financials •Brand•

The ShakeAway image is well-known and trademarked in the UK and all developed countries around the world.

The professional and unique design forms the structure of marketing which has attracted a loyal following and

media coverage.

TheThe ShakeAway brand has a history of over eleven years’ growth and has served many millions of MilkShakes.

The Franchisor vigorously protects any other business from infringing the styles of ShakeAway.

Brand • Support•

Both initial and ongoing support is paramount to give the

benefit of the experience the Franchisee is buying into. The

ShakeAway Franchise Team provides assistance with the

premises selection, the design of the shop, the specification

of required equipment and signage, assistance with staff of required equipment and signage, assistance with staff

recruitment and training on all systems and Customer Service.

Support is from the Directors, Finance Team, Training Manager, Operations Manager, Project Management and

ongoing future support from ShakeAway Head Office. You will receive assistance with the upkeep of systems,

specific marketing and promotional plans, the growth of sales and profitability, inclusion on the ShakeAway

website and all social media as well as being a part of the business-wide development of ShakeAway.

ShakeAway provides the Franchisee support in organising a realistic profit & loss expectation, Management

Accounts,Accounts, Pay Roll & VAT Calculations Service, allowing the Franchisee to concentrate on running their business

while an experienced professional Finance Department provides the paperwork services. Accounts are not

supported for overseas franchisees.




Brand • Support • System•

The system is fully-proven having developed and been tested in different types of towns, cities and premises.

Each ShakeAway Shop is operated by a trained management team, while being monitored and supported by

ShakeAway Head Office. This creates uniformity, consistency, confidence and simplicity. A ShakeAway Manual

documents all uniform systems for the protection of all outlets and Franchisees

Brand • Support • System • Agreement•

TheThe comprehensive Franchise Legal Agreement covers all subjects for both the Franchisee and the Franchisor

for the future. The document lists all responsibilities and obligations for both parties. You should take legal

advice from a Franchise Solicitor before signing.

Working alongside the ShakeAway Manual, it gives confidence to both the Franchisee and the Franchisor, defining

all commitments for both parties of this team.

The ShakeAway Franchisee takes the lease on the shop premises, however ShakeAway will provide assistance

with the selection of the premises.

Brand • Support • System • Agreement • Brand • Support • System • Agreement • Financials•

With a trading history, ShakeAway does not have to guess at any financial results. Five-Year trading forecasts

will become available should you proceed with this enquiry to further stages and you should tailor them to

your area at a subsequent stage. As with any business, the turnover and profits you achieve are your own

risk, but we will ensure that you are aware of those risks as we only want you to succeed.




The Franchisee must give thought to their commitment of personal investment required to cover the Franchise

Initial Fee, the shop set-up, the working capital and the risk that anyone takes in what is their own business

venture, either through investment of savings or savings assisted by borrowings or leasing.

ShakeAway’sShakeAway’s own Bank, HSBC, has experience of working with ShakeAway and, having analysed the ShakeAway

Franchise offer, the Legal Agreement and accounts, supports the venture. Many ShakeAway Franchisees have

also used Asset Finance companies, and contact details can be provided for both parties if you progress to

subsequent stages with your enquiry. We expect an average capital investment of around £65-70,000.


Who is Richard Waddington?



Questions you need to consider about any franchise business format

The product or service could have a market for a short time, a flash in the pan.

Does it have a future?”

We certainly believe so. ShakeAway was established in 1999 after six previous years experience making and

selling the original invention of “ShakeAway-style” MilkShakes. We retain our passion for the products,

conceptconcept and future of ShakeAway, supported by a comprehensive management structure, ShakeAway is debt

free and profitable.

Are the profit margins sufficient for a fair return on the investment and effort put in?

Based on realistic average accounts and assumptions for a fully-staffed shop, a mid-range Franchise can show

profit from Year One with possible annual net profits of around £33,000 in Year One rising to £50,000 in Year

Five. These figures are calculated after all fully-staffed running costs are paid except the Franchisee’s

borrowings.borrowings. With shop locations differing between prime and secondary positions, true figures will vary. Aiming

for prime sites, these figures may be greatly exceeded. Small stores in secondary locations can also be

successful as gross margins are circa 70%.

Franchisees with more than one outlet can also develop mini regional chains with strong profits.

Can the skills be learned by the Franchisee and their staff in a reasonable timescale?”

ShakeAway Trainers mentor and train all initial staff and a dedicated Franchise Regional Manager continues to

support the Franchisee in all ongoing aspects of the business. A comprehensive on-line Manual which is

continually updated acts as a complete ‘’how to do’’ in every situation.continually updated acts as a complete ‘’how to do’’ in every situation.




Is the brand recognised, protected and does the business have a loyal

Customer base?”

The branding is very distinctive and recognisable, trademarked in the UK and worldwide. The ShakeAway Cups and

images are used for promotional and marketing events and constantly cement the recognition of the brand. The

Franchisor acts against any legal infringement of styles and a recent High Court action prevented a “copy cat”

from causing public confusion with a similar name which contravened the law.

The level of Customer interest and loyalty is clearly demonstrated by Googling “ShakeAway”, visiting the The level of Customer interest and loyalty is clearly demonstrated by Googling “ShakeAway”, visiting the

‘ShakeAway Official’ Facebook, twitter and you tube pages (with over 50,000 fans), by seeing ShakeAway.com

with the Fan Club of well over 30,000 members (rising daily). Customers have a sense of community and

belonging, receiving individual responses from email contact and regular requests for “Please open in my town”

demonstrate a demand for more outlets.

Is the business tested in different geographical locations?

ShakeAway has been tested in towns and cities which have differing characteristics. Those which are…..

Visited by tourists who enjoy the seaside and which have seasonal population trends.

In cities with a year-round population of both residents and tourists who visit for history and culture.

In cities populated with residents and students, not generally attracting tourists.

In populous areas not known for student or tourist bases and in catchment areas which border on many

other competing destinations.

In Shopping Centres and High Streets, in prime and secondary locations.

FranchisedFranchised ShakeAway outlets are now open (and opening imminently) in many UK locations, and also Abu Dhabi

and Dublin in Ireland.




How Much Does It Cost?

The Initial Fee

This is £20,000 plus VAT. Franchisees will be a VAT registered Limited Company and can reclaim VAT expenditure.

This is paid at the signing of the Franchise Agreement and gives a time schedule to locate premises and open

an outlet. It buys a five-year Agreement and the rights to use the name and trademarks of ShakeAway,

committingcommitting the Franchisee to follow all systems of the business-wide operation and partake in all ShakeAway

activities and plans. After five years it is renewable if the Franchisee is adhering to the terms of the Agreement,

costing just the reasonable legal fees involved.

ItIt equally commits the Franchisor to provide assistance in preparing information for loan applications, to

assist with the selection of premises with an Acquisitions Agent, shop fitter and property lawyer at discounted

rates, the training on all systems for both the Franchisee and their initial team of staff, organising the building

and shop-fitting requirements, implementing the systems required to prepare for trading and other support

from the signing of the Agreement to the opening of the shop. In short, we are experts at opening a new

ShakeAway store and make the process as simple as possible.

The Royalty Fee

This is 7.00% plus VAT of the net turnover and is set for the term of the Agreement. This is paid weekly in This is 7.00% plus VAT of the net turnover and is set for the term of the Agreement. This is paid weekly in

arrears and covers the ongoing support of a dedicated ShakeAway Franchise Regional Manager and other

members of the ShakeAway Franchise organisation, including the huge marketing and promotional support to

drive footfall.




The Royalty Fee will include the provision of materials and/or artwork for some promotions and business development which are implemented across all UK outlets, and access to items used across the business network at cost price, thus benefiting from bulk buying. It covers ongoing support and guidance on systems used, and advice and support concerning general activities of running a business and being self-employed, all being supported and documented by the Franchise Manual. It covers inclusion on, and management of, the ShakeAwayShakeAway website, the VIP Royalty Card and any future activities of the whole business, such as ShakeAway TV and radio, benefiting from being part of a larger business and the reputation and loyalty already established.

The Royalty Fee also includes an experienced Finance Management Team to do your bookkeeping which is part of running your business. Your Management Accounts are prepared giving you monthly summaries of your shop’s performance, compiled in a way to present to your Accountant annually so saving you time and money. Staff Pay Roll and Pay Slips information is prepared, together with your PAYE commitments and VAT Returns being advisedadvised to you to sign off. All services are communicated promptly, regularly and clearly. You concentrate on running the business while the paperwork is done for you. Accounts are not supported for overseas franchisees.




Capital Expenditure

This varies depending on the size and condition of the shop premises selected, Town Planning, local labour costs

and many other factors. However, a guide budget from £65,000 - £70,000 to include the fees, works, equipment,

shop fitting, initial stock, legal fees, working capital, and all other items ready to begin trading. This is a guide

only and until specific premises are viewed it should be assumed that the actual figure may be higher or lower.

Requirements and specifications are provided by the Franchisor.

Working CapitalWorking Capital

Before the business establishes itself and begins

to maintain its own cash-flow, working capital is

required to support the business and meet

expenses which might begin in full on the first

day of trading. This includes wages, loan

repayments, opening stock, promotional activity

and other cost implications in the launch of a new and other cost implications in the launch of a new

outlet. Either as cash or an overdraft facility, a

contingency is required which can vary depending on many circumstances. Although the Franchisor can offer

guidance and options, this should also be discussed with the Franchisee’s financial advisors.

Fees and Borrowings

You might be able to fund the operation by leasing equipment or via a Bank Business loan (the latter would

often require security of equity in property). Repayments usually begin one month after the set-up.




What Next?

Is self employment for you?

Do you have the personal motivation to start early and work late?

Do you understand that self employment is not just a “Get Rich Quick” scheme?

Do you realise just how much hard work and responsibility it is to run a business and employ people?

Is franchising for you?

Can you work as part of larger organisation whilst still being self-employed?Can you work as part of larger organisation whilst still being self-employed?

Can you follow the systems of the Franchise and be uniform with other franchisees?

Can you see a benefit of joining an established franchise rather than starting your own business concept?

Can you afford it?

Can you provide savings to invest and the ability to borrow from a Bank or Asset Finance company?

Can you risk leaving a current career for the uncertainty any self employment brings?

Are you right for ShakeAway, and is ShakeAway right for you?

Do you understand the culture of ShakeAway, the humour, the style and the attention to detail?Do you understand the culture of ShakeAway, the humour, the style and the attention to detail?

Do you buy into the whole business of ShakeAway, seeing it as a business beyond the MilkShakes?

Do you see yourself being enthusiastic talking about Jelly Babies and serious about problems with

Cheesecakes?




A ShakeAway Franchisee buys into the established business, working for themselves and running their own

ShakeAway Shop with a seamless join between all other outlets. They employ staff of all ages, train and

motivate them and serve Customers as individuals with quality products following meticulous and proven

systems.

The ShakeAway Franchisee buys into the history of ShakeAway, understands the style and humour, is

enthusiastic about all the products and sees the business as both a serious and fun way to earn a living.

TheThe ShakeAway Franchisee buys into all that self employment requires, can hold their own at a meeting with

the Bank Manager, is able to understand what the Accountant is talking about, can use a computer, is able to

discipline or dismiss employees' , can mop a floor and dress up in Fancy Dress for Party Days and truly get

involved with the customer in marketing events. Shy you wont be!

If becoming part of the ShakeAway Team still interests you, then please complete the enclosed documents and

return them to us. The sooner you do it the sooner you can secure an exclusive franchise.

SoSo complete the Application Form plus a personal summary to help us know more about you, your experiences

and your intentions.

'A Non-Disclosure Agreement which will allow us to divulge commercially-sensitive information to you will be

provided should we both agree to proceed to a further stage, with you agreeing not to use or disclose the

information for any purpose other than a ShakeAway Franchise

Recommended surfing.....

Official ShakeAway web site

Official Twitter

Search the web for “ShakeAway”

Join Facebook for free. Search “ShakeAway Official”

See fan-created Facebook groups. Search “ShakeAway”

YouTube


www.shakeaway.com

www.twitter.com/shakeaway

www.google.co.uk

www.facebook.com

www.facebook.com

www.youtube.com/ShakeAwayFan



My Details •

Your information will not be revealed to any party outside ShakeAway Ltd without your permission and

knowledge, and used only in conjunction with discussions about ShakeAway Franchising.

Data Protection Registration Number Z8963236

If you need more space for answers, please use a separate sheet.

Your name plus the names of any partners or business associates interested in this ShakeAway Franchise:

1.1. 2.

3. 4.

Correspondence Address:

1. Daytime Telephone: 2. Evening Telephone:

3. Mobile: 4. Fax:

5. Email:

Which telephone number(s) should we use if we need to call you? 1. 2. 3.

The towns or geographical areas you would be interested in opening a ShakeAway Franchise:The towns or geographical areas you would be interested in opening a ShakeAway Franchise:

First Choice: Other Choices:




Are you considering one, or, eventually, more than one outlet?

What timescales do you have in mind for opening the first shop?

Would you work hands-on in the shop or plan to have it fully-managed?

Would you need to borrow money to proceed with a Franchise? Yes No

If “Yes”, how much would you need to borrow? £

Having read “How Much Does It Cost?”, do you meet the criteria for borrowing required? Yes No

How much personal cash do you have available to invest?How much personal cash do you have available to invest? £

Are you a UK home owner? Yes No

If yes, what would you estimate the equity in your property to be? £

Do you have other investments which could act as security for borrowings?

Are you considering one, or, eventually, more than one outlet?

What timescales do you have in mind for opening the first shop?

Would you work hands-on in the shop or plan to have it fully-managed?

Would you need to borrow money to proceed with a Franchise? Yes No

If “Yes”, how much would you need to borrow? £

Having read “How Much Does It Cost?”, do you meet the criteria for borrowing required? Yes No

How much personal cash do you have available to invest?How much personal cash do you have available to invest? £

Are you a UK home owner? Yes No

If yes, what would you estimate the equity in your property to be? £

Do you have other investments which could act as security for borrowings?




Do you have dependants who rely on your income? Yes No

What is your average annual income from your current employment? £

What personal annual income would you look for from a ShakeAway Franchise? £

Do you look at a ShakeAway Franchise mostly as a form of personal income or as a capital asset?

Do you have any professional qualifications relevant to this retail venture? If “Yes”, please provide details

Yes

When did you first find ShakeAway and what were your impressions?When did you first find ShakeAway and what were your impressions?

What personal experience and skills do you have to run your own business? Why are you right for ShakeAway,

and why is ShakeAway right for you?

How would you describe your personality?




Have you applied for/are you researching any other Franchises?

Have you previously been self-employed? Yes No

If yes, please explain in what capacity and describe successes or failures experienced.

Do you have any criminal convictions or bankruptcies which affect your running a business?

Yes No If yes, please provide details

Your signature(s):Your signature(s):

Date:




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ShakeAway Franchise Information Pack (1)

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