Finances
Cost
Our finance team will prepare a full projected Profit & Loss Account and projected cash flow for your specific site (encompassing specific rents etc.) once a location has been selected.
These figures together with our research summary for the location will then be used to present your business proposition to one of the major clearing banks; a number of which have experience of Snappy Snaps stores on which to base their risk decision.
Based on the average returns in the group and our experience, the expected returns for an average Snappy Snaps store could be as follows:
Sales
£200,000
£300,000
£400,000
£500,000
Gross Profit
£168,000
£252,00
£336,000
£420,000
Net Expenses
£128,000
£151,000
£196,500
£254,000
Store Profitability
£39,000
£100,500
£141,500
£165,000
We would expect our new stores to be able to achieve minimum net sales of £200,000 per annum within a reasonable period.
This will obviously be dependent on the site and the local trading environment.
*The net expenses figure includes all expenses associated with operating a Snappy Snaps store including labour, rent and rates, other expenses, the 6% on-going franchise fee and the 2% marketing contribution.
Store profitability is sometimes known as EBITDA (earnings before interest, depreciation and amortization).
NB These figures represent estimates only and future projections can never be guarantees of actual performance.
The initial VAT (which is fully recoverable) can be financed by short-term overdraft if required. These figures provide you with a guide as to the start-up costs for a Snappy Snaps store.
There will be some variances with the above depending upon the location and size of your Snappy Snaps store and the point during the year that completion takes place.
Site Aquisition and Legal Fees
£15,000
Shop Fit Out (may vary)
£35,000
Rent 3 Months Up Front (varies)
£8,000
Equipment Package
£60,000
Initial Franchise Fee
£14,000
Opening Promotional Launch Fee
£4,000
Working Capital
£15,000
Total
£151,500
Your Input (cash in hand)
£35,000
Bank Borrowing
£62,000
Machine Finance
£54,000
Total
£151,500
Track Record
Developing a successful franchise network has neither been quick or easy. It has taken many years of continuous research, planning and hard work for Snappy Snaps to achieve the level of success that our franchisees now enjoy and benefit from.
The first Snappy Snaps one-hour photo store opened in 1983. A further three trial stores were added during the following three years and following the incredible success of these stores, the first franchise Snappy Snaps opened for business in 1987.
Bhupen and his brother Vinod still own that first franchise store and have since added additional branches to their business portfolio, and there still might be more on the way.
Every year we continue to grow by adding new stores and by building the business of existing franchisees and now we are firmly established as one of the countries leading retail franchises.
We will provide you with opportunity and also help and advise you on how to build your own business and plan your own success story.
The Financial Times has reported that 92% of all new businesses fail within their first 5 years except in established franchises where conversely the success rate is 90%. By joining our franchise you will start with so many advantages and much less risk.
“The key to our success has been our desire to go further for our customers. We are confident that Snappy Snaps will continue to be the best on the high street, constantly striving to improve and expand the services available. All of this is supported by our expertise in photography and the enthusiasm shared by our franchisees. Snappy Snaps is moving photography and imaging into a whole new arena.”