What happens at the renewal period?
Whilst Cafe2U cannot unreasonably withhold the renewal of a franchised business, it is important to consider the requirements that may prevent the granting of a renewal.
For a renewal to be formally granted, a Franchise Partner must indicate to the franchisor, in writing, their intention to exercise their option to renew. This must be received no less than 3 months prior to the renewal date. The Franchise Partner must also be operating their business in accordance with the franchise agreement and the method of operation as outlined in the operations manual.
A Franchise Partner may be required to upgrade any equipment, fixtures or fittings required to continue the operation of the business into a renewal term. This may also include the updating of any vehicle branding to meet the current look of the franchise, or the refurbishing of any equipment within the vehicle. Any upgrades will be agreed between all parties prior to the renewal period and will be for the cost of the Franchise Partner.
What if I want to sell my business?
A Franchise Partner may offer their business for sale at any time during their 10 year term. As with any franchise system a potential buyer must be formally approved by Cafe2U head office to ensure that they have the capability to operate the business and that the standards will be maintained. The franchisor does have first right of refusal to purchase the business back from the Franchise Partner. Cafe2U cannot unreasonably withhold the sale or transfer of a franchised business, however may do if the purchaser is placed is a position of disadvantage, or is not capable of operating the business.
If I sell my business does the 10 year term restart?
No. The purchaser of your business is assigned the rights and benefits for unexpired portion of your term only.
What help does Cafe2U provide to assist the sale of my business?
It is a requirement that any potential buyer completes the Franchise Selection Process. Cafe2U is not able to actively assist in negotiating the sale of an existing franchised business on behalf of the Franchise Partner. This represents a clear conflict of interest for the franchisor and this responsibility remains with the Franchise Partner.
Cafe2U can however assist with general advertising and marketing advice and also refer any interested candidates direct to the franchisee. Cafe2U would ask for a placement fee if they did refer a candidiate. Cafe2U strongly recommends that Franchise Partners appoint a qualified business broker to assist them with the sale of their business.
Are there opportunities for career progression with Cafe2U?
Yes. It is no secret that Cafe2U is a growing business and actively recruit high performing Franchise Partners from within the Franchise Partner network. With the brand continuing to grow in Australia, the UK, Ireland, USA, New Zealand, S Africa and Canada opportunities will always present themselves for motivated individuals. Please contact us on + 44 (113) 2320118.