Retailers are being offered an upfront payment of up to £50,000 to switch to a Bargain Booze or Select Convenience franchise under a new financing scheme from brand owner Conviviality Retail.
The Switch, Sell, Strengthen franchisee scheme offers funding for retailers to upgrade their store when switching to one of Conviviality’s franchise brands. In addition, it helps retailers looking to sell their stores by offering a fast-track purchase scheme, and to assist existing franchisees looking to expand their business with an additional site.
Retailers will be invited to find a suitable site, either independently or via the Conviviality Retail optimal location tracker, and receive all upfront costs to set up a Bargain Booze or Select Convenience store, including the cost of refit.
The upfront costs, along with 50% of the refit costs, will then be paid back by the franchisee over an agreed time period, after which the franchisee will own the goodwill of the business. At the end of the term Conviviality Retail will buy back the business, or the franchisee can keep on running the store.
Conviviality Retail operations director John Pattison said: “Franchisees are key to our success, and we are always looking for new ways to work collaboratively with them to improve their businesses.
“We know initial costs can be a key barrier to setting up or expanding a business, so we’re confident our new license approach will help encourage more retailers to join our franchise, as we continue to expand across the country.”
Conviviality plc last week appointed a new group chief financial officer (CFO) to replace Andrew Humphreys who leaves after three years with the business on October 30.
Mark Moran, 57, who has more than 20 years’ experience at CFO level, including at Premier Foods between December 2011 and September 2013, will replace him on the same date.
Moran was most recently CFO of Priory Healthcare Group before Arcadia Healthcare acquired it last year.
Conviviality said in a statement that its new CFO came with a proven track record of financial stewardship and had been involved with many acquisitions and disposals, business restructurings and major refinancing.
Diana Hunter, Conviviality’s chief executive, said Humphreys had played a key role in the company’s “significant growth”, including pivotal roles in the acquisitions of Matthew Clark and Bibendum PLB.
She said the business looked forward to Moran contributing to the company’s further development “as the UK’s leading independent wholesaler and distributor of alcohol and impulse.”
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