The business proposition

The Franchise OPtions

You can start your easyCoffee franchise business by investing in a single machine, or buy multiple machines to increase the scale of your business. Once you have been approved as a licenced franchisee, you can expand your business and invest in new machines whenever you wish. Purchase more than 10 machines and find out how to benefit from discounted prices. 

1-10 machines £15,000 per machine

10+ machines Ask for bespoke terms

The franchisor will receive payment when each machine is ready to be sited. Until then the funds will be held in a solictors client account on behalf of the franchisor, but no monies will be drawn down until siting is ready. Funds will be drawn down in two stages; first to pay a deposit to secure the machine and then final balance when the machine is ready for delivery and installation. 

Limited FIRST Offer

To ensure each franchise opportunity meets our site location pipeline this offer is limited to 150 machines.  

Set up Charges

There is a set up charge of £750+VAT per machine (£900) and it covers the following matters which are dealt with by the franchisor’s solicitors; supervising the execution of the machine agreement, registration of the licence including approval as a licenced franchisee. It also covers checking that a location report exists for each machine and a marketing activation pack will be available at each selected site. It also include our lawyers administrative costs in connection with holding franchisee funding pending delivery of each machine. Our legal advisors will be acting solely on behalf of the franchisor in carrying out these functions. 

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How it works

OUR COMMITMENT

Investors in easyCoffee have already invested over £2 million to help develop the business and grow our brand. You can now enjoy the opportunity of a long-term business relationship and share in the easyCoffee success. 

ASSETS YOU CAN TOUCH

This is a business where you can play an active role if you choose. It is a genuine alternative to property or the stock market. Your machines can be viewed at any time, and you can experience them being used by genuine customers. You can also suggest new locations to us, which may be near to where you work or live. You can introduce site owners and we will follow them up and effect any agreements necessary. If you site the machine in your own premises, your returns will greatly increase as you will not be sharing with a third party site owner.

FINANCING YOUR MACHINES

It is possible for franchisees setting up their business to borrow where possible, to expand their operation. The use of a loan reduces the amount of investment that you need but increases the risks as lenders would typically have security over your assets and the first right to any free cash flows. Whether finance is suitable for you is a matter you need to discuss with your own accountant or financial advisor but vending machines are a well-established part of the consumer market and there are many lenders who provide equipment funding. 

COMPARING YOUR OPPORTUNITY

When you invest in SEIS, your initial tax relief is 50% and with EIS it is 30%. In those cases, unless you are directly involved in the company you will not be playing any active role. Assuming you are a higher rate taxpayer, you get an initial capital allowance of 45%, which can be set off against the purchase of machines or in certain instances, other income including being carried back to earlier tax years. Please discuss this with your own accountant or financial advisor. The investment can be made either as an individual, through a company or partnership. Your business immediately starts generating income which you receive. You are in control rather than other people and for that reason, investors who would like to be involved in a business they completely own may find this opportunity particularly attractive. As an example, if you borrow 50% of the cost of your machines over a 3 year period at an interest rate of 6%, your average annual return will increase to 64%, and you IRR to 61%. 

ACCOUNT SUPPORT

You get your own account manager who works with you to grow your business as big as you want and to make sure your machines are performing up to the standard required. Remember that you can buy more machines at any time to help grow your franchise business. You do not need catering or retail experience when you have our full support so you can run your own easy coffee business from your armchair. We can also provide you with all the training needed if you wish to understand the workings of your machine and how it delivers money for you. 

CHARITY

The easyCoffee team works with charities that benefit from the machines sales. You can tell us which charity you would like to have a machine and we can put that machine in their premises with a discrete nameplate showing that you are the donor. If you were thinking of giving to charity and you would like to see your charitable gift at work, then providing an easyCoffee vending machine can be a rewarding charitable gift. The charity should get all the net income from the machine free of tax.

TAX EFFICIENT

The machines should qualify for 100% capital allowances. Business property relief (IHT) may also be available. For more details, speak with your accountant or financial advisor. Charities and SIPPs receive all income free of charge and as a result can achieve even higher returns. Commitment to our franchise opportunity can be made as an individual or a company or a partnership. 

NON TAXPayers

Entities which do not pay tax on their income like charities and Self Invested Personal Pension Schemes (SIPPS) achieve higher returns than tax payers as a result of the benefit from receiving their share of vending income without a tax liability. You get full tax relief on the value of your gift and we deliver and install the machine. Where charitable gifts are concerned we reduce our management fee by 10% per annum. 

RISKS

As with any business venture there are risks. A franchise with coffee vending machines is subject to a number of risks and you should carefully consider the risks that we have set out on the website. The information we supply is not intended to be an exhaustive list or given in any particular order of priority. There may be additional risks and uncertainties that are not presently known that could have an adverse effect on your business and you need to consult with your accountant or financial advisor to decide whether this opportunity is suitable for you in the light of your personal circumstances. 

EXPIRY AND CONTINUATION

The easyCoffee machines have a life expectancy of six years. After this period you can trade them in for new models if you wish to continue with the business. If an owner wishes to sell an easyCoffee vending machine we will have a facility for machines to be offered to buyers interested in acquiring machines already in use. 

Feedback from site owners

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I decided to partner with the easy brand because it is trusted. Shoppers know it represents value and quality, and they associate it positively with their holidays.
— SPAR retailer, Raj Aggarwal
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The coffee from our easyCoffee machine is excellent. We’ve had great feedback from customers and these hot drinks support our new food to go options.
— POST master, Abdul Patel
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easyCoffee served in our store is really popular and attracts lots of our locals. The support is great and we’ve now had one installed in our other shop too.
— NISA retailer, Anil Pankhania
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Brand support

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And what we look for in siting the machines...

A location within 3 metres of the main entrance or are of highest footfall

13amp power source, a water supply and storage for cups and consumables

Priority space for marketing materials such as window graphics, signage and leaflets

Site commitment to promote drinks, and maintain the machine as specified

So simple to ruN

THE EQUIPMENT

Our self-serve hot drink machines provide a perfect way to offer fresh bean-to-cup easyCoffee to your customers. Ideal for unmanned spaces with a limited footprint, they help turn even the smallest of areas into a profit generator. The easyCoffee terminal machine works in a variety of high footfall locations, can take all forms of payment, and all drink sales are tracked in real time via our advanced telemetry

MAKING IT WORK

We arrange delivery of your machines to your chosen location. The machines are rated A* energy efficient with minimal wastage, and we provide a regular cleaning and coin collection service. Online ordering of the consumables is fast and simple, and your delivery is guaranteed within 48 hours. This includes all ingredients and disposables such as coffee, tea, hot chocolate, freeze dried milk and sugar, plus branded cups, lids and drink stirrers. 

BRAND REASSURANCE

In line with our brand name and heritage, we want your machines to be easy to manage and easy to access. You will benefit from association with the easy brand. Customers love the brand and associate it with positive and exciting experiences, such as their easyJet travel and holidays. They understand our brand values of challenging the existing coffee brands and striving to offer simplicity and good value

 

TOTAL MANAGEMENT SERVICE

We survey selected premises to identify the ideal location for the machine. We approve the premises before the machine is installed. You may propose your own site or suggest a suitable location. Once our team have installed the machine and provided maintenance training, the machine can immediately start selling coffees and hot drinks! We review sales with you after a 30 day trial period, and if the results are satisfactory, we sign an agreement with the site owner and you leave your machine on a long term arrangement. The business can run itself, but we monitor performance continually and we will consult you regularly. 

INCREASING YOUR SALES

You will have access to a team of brand champions who will visit machines sites regularly and help you sell more coffee. They check that everything is working efficiently and will train your site team on cleaning and maintenance and monitoring stock levels. They also ensure that you have the best point-of-sale marketing materials to help you achieve maximum cup sales. 

YOU ARE IN CONTROL

We ensure that every sale made is monitored by our in-built telemetry, and technical issues are identified remotely in real time. As an approved franchisee, you will receive monthly reports and financial statements. Your share of the previous month’s income will be paid by the 10th day of the following month. 

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Understanding the RISKS

 

As with any business venture there are risks. A franchise with coffee vending machines is subject to a number of risks and you should carefully consider the risks that we have set out on the website. The information we supply is not intended to be an exhaustive list or given in any particular order of priority. There may be additional risks and uncertainties that are not presently known that could have an adverse effect on your business and you need to consult with your accountant or financial advisor to decide whether this investment is suitable for you in the light of your personal circumstances. We are happy to answer any questions as far as we are able to do so and to meet with prospective franchisees. The easyCoffee proposition is intended to be open and transparent and fairly set out the potential rewards but also set out the normal business risks that you would expect to see in any trading business for that reason this opportunity is particularly suitable for sophisticated and high net worth individuals.

In addition to the general overview of risk the following are specific factors that should be considered carefully in evaluating whether or not to acquire a franchise under the easyCoffee brand.  The list that is set out here is not exhaustive, nor is it an explanation of all risk factors that may be involved in acquiring a franchise under the easy coffee brand nor are the risks given in any order of priority.  These are the sort of risks that can relate to a UK franchise in the coffee vending machine market:

  1. Competition with respect to price, service, location and drink quality;
  2. Changes in demographic trends, customer traffic patterns and the type number and location of competing sites;
  3. Health pandemics may cause customers to stay away or prevent sites being adequately staffed;
  4. Health concerns and litigation in relation to health issues;
  5. Changes in government legislation and regulations affecting those operating in the serviced drink industry and their staff; and
  6. Changing general economic conditions and changes in consumer confidence, disposable income and discretionary spending patterns.

The above factors may have a detrimental effect upon the results of a franchise operation.

The UK, as a member of the European Union, is planning to withdraw from the European Union and this may have unknown economic effect.  easyCoffee does however have the right to place machines in various European countries.

You should always remember that an easyCoffee vending machine franchise may not be suitable for all persons and accordingly advice should be considered from an appropriate professional advisor before making a decision to become an easy coffee franchisee.

 

TAXES | What are capital allowances?

 

In brief capital allowances are a form of tax relief given in place of depreciation on qualifying items of plant and machinery. You can claim capital allowances when you buy assets that you keep to use in your business and the value is usually what you paid for the item. Capital allowances are the sums of money UK business can deduct from the overall income or corporate tax on profits.

The particular allowances for an easy coffee vending machine offer tax relief at 100% on qualifying expenditure in the year of purchase.  The maximum sum you can deduct from your taxable profits is now set out £200,000.

Capital allowances can be carried forward to be used in a future period.  Capital allowances can also be used to offset against your other income such as employment income, rental income and income from your other businesses.  Non-capital losses can be carried back three years.  The relief you get it depends on your individual circumstances and the tax rates may change in the future.

A tax table has been set out below which gives an overview comparison of how capital allowances compare with other sorts of tax relief. None of this information is intended to represent advice on matters related to taxation which should always be taken from the appropriately qualified adviser.

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Apply for a business loan

 
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This form is passed to FRANCHISE FINANCE to arrange any borrowing and will involve credit assessment before a loan can be granted, subject to personal circumstances and financial status.

Registered office: FRANCHISE FINANCE Limited, Beacon House, Stokenchurch Business Park, Ibstone Road, Stokenchurch, Bucks HP14 3WN. Registered in England and Wales, no: 07285150. Authorised and Regulated by the FINANCIAL CONDUCT AUTHORITY, no: 627385. 

FRANCHISE FINANCE LTD does not endorse or recommend any franchise opportunity but acts as a specialist finance broker only with regard to all loan applications for franchise funding. 

T: 01844 355575 
E: funding@franchisefinance.co.uk
www.franchisefinance.co.uk