Need to be careful , the Business model is being hit by food distributors who can provide new start up independent cafes and restaurants with many and sometimes more of the benefits that master franchisors can to franchisees but with the Distributors no 7% take off the sales going to the franchisor nor is it necessary for the independent cafe to only bye product specified by the Franchisor , ie can make own product on site so fresher and less cost
Its started with Bidvest and Provida who supply food to the cafe in NZ and is coming to Australia
Given many cafes operate at less than a 10% profit margin , taking seven to 10% off sales for the Master Franchisor means the franchised cafe effectively has to sell around twice as much food for the same profit as an independent plus put up with all the other regulations the Master Franchisor has in the contract - ie expensive training programs , % of sales put towards company advertising.
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