How do I finance a Supanews store?
Estimated Capital Requirements
The costs associated with establishing a new Supanews franchise will greatly depend on the tenancy size, level of fit-out and stock required.
Estimated Upfront Investment (ex GST)
|Estimated Upfront Investment (ex GST)|
|Initial Franchise Fee||$10,000|
|Launch Marketing||$1000 - $5000|
|Start Up (i.e. name tags, uniforms, stickers, stationary)||$1,000 - $3,000|
|Store Setup (i.e. wages)||$1,000 - $3,000|
|Accountant’s Fees||$500 - $10,000|
|Solicitor/ Legal Fees||$2,000 - $5,000|
|Lottery Licence||$500 - $50,000|
|Franchisor Legal fee||$3,000 - $5,000|
|Supplier Deposits||$1,500 - $8,000|
|Business Registration||$500 - $3000|
|Insurance Premiums||$2,000 - $7,000|
|Workers Compensation||$500 - $2,000|
|Stock (per sqm)||$500 - $1,500|
|Estimated Capital Expenses (ex GST)|
|Shop fitting - Fixtures & Fittings (per sqm)||$950 - $2,000|
|Shop fit Design||$2,000 - $5,000|
|Cat 1 (i.e. air con, emergency lighting, power and water)||$10,000 - $40,000|
|Other (i.e. TV, sound system, vacuum cleaner, ladder)||$2,000 - $5,000|
|Point of Sale System (2 terminals, printers + software)||$15,000|
Based on a typical 150sqm store, the average startup costs are approximately $300,000.
In addition, landlords often require a bank guarantee usually equivalent of up to 3 months’ base rent as well as the first month’s rent paid prior to opening for trade. You will also require 3 months’ cash flow to ensure that you can support the business through the initial growth phase.
The average Supanews store runs at a margin of 52.3% based on general sales and the net sales of commission products including lotto, travel cards and phone top ups.
Initial Franchise Fee & Ongoing Weekly Service Fee.
Included in the establishment costs is an initial franchise fee to Supanews. In return Supanews provides these services to its new franchisees, including:
- Store opening training program
- Site selection and lease negotiation
- Project management of the store fit-out
- Training and store set-up
There are two types of franchises offered by Supanews:
Licensee’s pay a fixed royalty amount depending on store size, plus contribute a marketing levy of 0.5% + GST of ‘Gross Sales’ to a marketing fund that is administered and operated by Supanews management. Licensees benefit from industry leading supplier rebates less 15%, trading terms, and receive ongoing support from the franchise team with quarterly store visits to help drive growth and analyse your business. The license fee typically ranges from $3,500 to $26,000 per annum.
Franchisees remit a weekly service fee of 6% + GST of ‘Gross Sales’ and contribute a marketing levy of 0.5% + GST of ‘Gross Sales’ to a marketing fund that is administered and operated by Supanews management. Franchisees receive the full benefits of industry leading supplier rebates, trading terms and receive ongoing support from the franchise team with monthly store visits to help drive growth and analyse your business. The costs of belonging to Supanews are far outweighed by the financial benefits and support received.
We offer ongoing business support to our franchise network, led by our Regional Business Managers (RBM). Your RBM is in constant contact with all our franchisees and will work with you to improve your business by offering advice on all things business related.
Our main aim is to make each franchisee as profitable as possible, and this can only be achieved by providing effective business support. As WHSmith is a global retailer, we have access to the latest in trends and initiatives designed to help make retailing in our category as profitable as possible.
The Ideal Supanews Franchisee
Supanews franchise owners must possess business acumen, be motivated, dedicated and enthusiastic, committed to the business, and the Supanews group, and most of all be prepared to expand your knowledge and work smarter not harder. A willingness to cultivate new initiatives and maintain Supanews standards of customer service, core product ranging and store presentation will be required by Supanews to achieve a mutually beneficial business relationship.
The Way Forward
Buying a franchise is not something to be entered into lightly. You should be completely satisfied with the track record of any franchisor before committing to a long term business investment. We encourage you to compare Supanews against other franchise systems. When you join a leading national franchise, you gain many advantages and opportunities that independent businesses are unable to achieve. For further information on Supanews franchise opportunities or any other aspect of becoming a Supanews Group franchise owner, please contact our Franchise Support Team.
Franchise Department Email: firstname.lastname@example.org