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A retailer in the gelato/coffee and quick service restaurant (QSR) sector, Creams has been providing sundaes, American-style waffles, crepes, 40 flavours of gelato, sorbet and hot and cold drinks to UK customers since 2008. A dine-in and takeaway service is available.
The company’s aim is to expand the business through a mix of company owned and franchised outlets.
Creams is an associate member of the British Franchise Association. It opened its first UK franchise in 2010. Master franchise opportunities outside of the UK are available.
How does the Creams franchise model work?
This is a management franchise, as each store typically employs around 16 staff, 40 per cent of whom work on a full-time basis. Store opening times are usually between 11am and midnight, although this depends on the location of the outlet.
In partnership with franchisee investors, Creams transforms high footfall high street premises into atmospheric 1950s retro Americana-style restaurants.
Sites need to be a minimum of 1,500 sq ft, designated for A1 use (A3 preferred), have car parking facilities and be close to complementary businesses such as restaurants and entertainment venues.
Customers from a wide age range are attracted to Creams through a combination of its distinctive menu offering and trendy black and purple branding.
For their investment, franchisees are provided with a comprehensive package of training and support, as well as benefiting from Creams’ knowledge of the market and track record of success.
What locations or territories are Creams looking to operate in?
The company has franchise opportunities available throughout the UK. Creams’ growing network currently consists of 87 stores.
Creams franchise price
As a guide for prospective investors, Creams puts the typical total cost of opening a franchised store at between £275,950 and £363,900.
This figure includes a licence to operate using the Creams brand and know-how, business manuals, the fit-out of the store, equipment, external signage and business planning, plus property legal costs, architect’s fees and pre-opening expenses.
Ongoing fees payable to the franchisor include a franchise royalty fee of five per cent of gross sales and a marketing fee of one per cent of gross sales.
Bank funding is available for a proportion of the start-up costs, subject to status.
Creams franchise profit
This is dependent on the level of investment made by the franchisee, the area in which they operate and the number of stores they open.
Is Creams a good investment?
The company’s strong branding, wide potential customer base and a menu that differentiates itself from its competitors in the gelato/coffee and QSR sectors means that for franchisees the potential is there to grow a profitable niche restaurant business.
Creams extends across the coffee shop and ice cream sectors, which are both growing in the UK.
According to the Project Café 2018 UK report from the Allegra World Coffee Portal:
• The UK coffee shop market is worth £9.6 billion.
• Total industry turnover grew by 7.3 per cent in 2017.
• 1,215 new outlets opened for business in 2017, bringing the total to 24,061, which is an increase of 5.3 per cent on the previous year.
• It’s forecast there will be 31,400 coffee outlets in the UK turning over £13 billion annually by 2022.
When it comes to the billion pound UK ice cream market, consumers are purchasing more and are willing to pay higher prices for premium products.
They’re also eating ice cream throughout the year, rather than just during the summer months, according to market research specialist Euromonitor International.
Trade association the Ice Cream Alliance estimates that each person in the UK eats an average of nine litres of ice cream a year. Ice cream is also still seen by many families as a popular affordable treat.
Where in the UK is the Creams franchise based?
The company’s head office is in Dagenham, Essex.
What training and support do Creams franchisees receive?
Experience in the catering and/or retail sectors is an advantage for prospective franchisees, but is not essential, as Creams’ 21-day training programme, which takes place at company headquarters, gives you all the knowledge you need to open one of its franchise businesses.
Pre-opening support consists of assistance with selecting and securing a suitable site, fitting out the restaurant, writing a business plan, setting up a supply chain and a store launch marketing campaign.
On an ongoing basis, franchisees benefit from store visits, progress reviews, refresher training as and when required, operational advice, the development of the menu on offer, marketing and website support, and guidance on developing the business.
What are the Creams franchise’s terms of agreement and renewal?
The initial franchise agreement lasts for five years. Franchisees can renew to trade using the Creams name for a further five years if they wish and in agreement with the franchisor.
How can I get started on setting up my own Creams business?
Candidates can fill out a brief application form on Creams’ website or download the company’s franchise prospectus, which includes details about the business and the markets in which it operates.
Creams also organises discovery days, where potential investors can meet staff and directors from the company and ask any questions they may have about the business.
Following the due diligence research process, securing and fitting out a suitable premises, signing the franchise agreement and completing training, franchisees can expect to be up and running within two-three months.
To find out more or to request further information on franchising with Creams, click the ‘Send Enquiry’ button now.
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