The One Stop franchise model will be based on wholesale purchases with an upfront franchise fee, C-Store understands.
According to sources contacted by Convenience Store, the scheme is likely to be based around retailers purchasing stock from One Stop at a wholesale price, and retaining the margin when sold at the designated retail price. As such, it is closer to a symbol group model than many other franchise programmes previously employed in the sector, where retailers have often had to surrender a percentage of sterling sales off the top.
Interested retailers will be expected to pay a discussion fee before starting talks, although this will be refunded against the first franchise fee payment. Although retailers will be expected to purchase a high proportion of their goods from One Stop, some leeway will be allowed for local products.
The trial One Stop franchise is already in operation at a site in Wiltshire.
Speaking at the launch of the franchise trial, One Stop’s ceo Tony Reed said: “Independents offer years of local relationships and commitment to their customers. We want to preserve this and in turn offer our expertise in distribution and store proposition.
“We and our customers want to see neighbourhood convenience shops thrive. Our franchising concept is about helping good independent family businesses make an even greater success of their stores.”