SAN DIEGO, CA -- Fresh Healthy Vending International Inc. said it has signed a letter of intent with a proposed master franchisee partner in Australia, the native land of FHV founder Nick Yates. The soon-to-be Down Under master FHV franchisee, Bobby Jewell, is a chef and author and has owned one of Sydney's oldest and most famous restaurants, Tharen's, established in 1979.
Under the proposal, Jewell would sell and develop a minimum of 150 sub-franchises, each having at least 10 units, in Australia over the next 10 years. He would retain Civic Managed Services to provide the vending enterprise with marketing, accounting, finance and management support. CMS would also provide IT support, franchise support, documentation and compliance, purchasing and procurement, along with warehousing and distribution.
FHV said it would receive a down payment of $25,000, an additional $225,000 within 60 days of executing the master franchisee agreement, and another $250,000 within 18 months of completing the deal. FHV would also receive franchise fees of $500 per unit sold, and 1% ongoing royalties of sub-franchisee sales.
FHV announced in February that it was expanding outside North America and had appointed master franchisors Global Franchise Partners and World Franchise Associates to seek out potential master franchise deals and replicate its business model in the U.S. | SEE STORY
Global Franchise Partners will reportedly work with Civic Managed Services to assist Jewel with the operational infrastructure, and aid in running the backend of the business.