Franchise

Phoenix is ready and prepared to navigate through all upcoming legislation, including the Tobacco Products Directive (TPD) which comes into effect in May 2016. This ensures that your franchise will be able to sell Phoenix eLiquids even after that date as we will be compliant.

Franchise Overview

Phoenix is a strong and respected brand with authentic flavoured, UK manufactured eLiquid. Every batch of Phoenix eLiquid is manufactured and fully analysed through our state-of-the-art laboratory facilities, and our hardware is sourced directly from original and respected suppliers, such as Kanger, Innokin and Aspire.

A Phoenix eLiquid Franchise is an affordable option for someone looking to start their own business.

Our Franchise Starter Package is very comprehensive, including:

A full Phoenix shop fit

A fully integrated EPOS till system

Full stock control and reporting

Tailored starting stock

Full training package

Full support of our experienced team

GCMS All Phoenix eLiquid is manufactured by qualified chemists at our central Production Laboratory in Peterborough. The Peterborough facility also houses our dedicated eLiquid Analytical Laboratory where, uniquely, every finished batch of our eliquid is fully analysed using a scientific technique called gas chromatography-mass spectrometry (GC-MS). Analytical data, signed off by our Doctor of Analytical Chemistry, is available for end-user consumers through our batch search function at www.elscience.co.uk

Get in touch with us today to find out more about becoming a Phoenix franchisee.

How is Phoenix Different?

The top level management at Phoenix is comprised of experienced professionals. Our Technical Director is a senior chemist with over 20 years of experience managing chemical laboratories. Our Commercial Director is a retail guru, experienced in shop start-up and management, as well as consultancy. Finally, our Chief Scientific Officer holds a PhD in Analytical Chemistry, a BSc (Hons) in Pharmaceutical Analysis, and is a published scientific author.

As a result, Phoenix is highly focused towards chemical quality. Our Technical Division, EL-Science (E-Liquid Science), houses both our Production Laboratory and our Analytical Laboratory.

We pride ourselves on the fact that every batch of Phoenix eLiquid is manufactured to strict quality standards, similar to those found within the UK’s top commercial chemical and pharmaceutical laboratories. Each batch is manufactured and signed off by one of our qualified chemists and is then fully analysed using our own in-house GC-MS for nicotine content, acetoin, diacetyl and acetyl propionyl, before being released for bottling and retail.

EL-Science is leading the industry in terms of analytical and legislative quality, offering analytical, consultancy and technical services to the electronic cigarette industry as a whole.

GCMS Analytical quality and data gives the consumer confidence in the end product. We know exactly what is in every batch of our eliquid from actual complete analysis of the finished product, not just from knowledge of the raw materials. We are one of very few companies that perform analysis of every batch.

End-users have access to the analytical test report for the batch of eLiquid they have purchased using our unique batch search function at www.elscience.co.uk

The combination of this technical competence, along with our legislative expertise, ensures that Phoenix and our Franchisee Partners are ready to meet current and upcoming legislative requirements, including those of the TPD.

Get in touch with us today to find out more about becoming a Phoenix franchisee.

What Return Should I Expect?

Your return will very much depend upon your commitment and enthusiasm for your new venture.

We are there every step of the way to provide useful insights into marketing and promotion as well as fully training yourself and/or your staff. Based upon a selection of our stores you could expect the following:

Store/Annual Prediction	Revenue	Gross Profit
An Average Store	£150,000	£62,000
A Successful Store	£250,000	£104,000
A Highly Successful Store	£400,000	£165,000

The figures quoted above are taken from an average selection of our own Phoenix stores with an estimated margin of 50% applied to calculate franchise gross pre-tax profits. The gross profit above has taken VAT into account but not subsequent tax.

There is likely to be an initial period of 2-3 months during which a new store is very quiet. As it becomes established, this is followed by a further 2-3 months before the store begins to reach its full potential.

These figures are not guaranteed but are intended as a guide for information purposes only.

Get in touch with us today to find out more about becoming a Phoenix franchisee.

What Does it Cost?

Our Franchise option is very competitively priced. We know that the key to long term success is working with the right people and building a genuine, mutually beneficial relationship. As such, we have worked very hard to ensure our up-front fees are as low as possible.

Our franchise model ensures that there are no additional annual or monthly fees.

Franchise Fee - £5,000

The franchise fee allows you to trade and operate under our Phoenix brand, covers the setup of your new store within our EPOS electronic stock control system, and allows you to purchase stock at a reduced rate in comparison to those who simply purchase wholesale.

Shop Fit - £5,000 (variable)

The shop fit fee includes the fitting of a standard whitebox shop with counters, slat-wall, shelving, posters, displays, and front of shop signage. You are also loaned an electronic till at no charge to enable our electronic stock control system to operate. As shop units can vary in size, this may reduce or increase the investment required. The fee is set based upon a â€œwhitebox shopâ€. This means that the shop is already presented at a high standard of finish, fully painted with adequate flooring and lighting. As we are entrusting you with our brand image, we insist upon a presentable shop prior to us commencing fitting. If the shop isnâ€™t in a presentable state, we are able to supply building and other services to bring it up to our minimum standard at additional cost. We are also able to assist with lease negotiations where required.

Legal Fees - £2,000 (variable)

Having been through the process many times, we have a contracted property solicitor firm who deal with our in-house leasing applications. We are happy to assist with leasing to ensure that you get the best from your lease, avoiding some of the pitfalls which snare many who are new to commercial property. If brought in early enough, we are also able to assist with rent negotiations, particularly should the property require work to achieve the minimum standard, which is often the case. We are generally able to offset some of the renovation costs with extended rent-free periods. The actual cost of the legal fees will depend upon the work required, and is hence variable. The legal fees cover the Franchiseeâ€™s portion of the Franchise Agreement.

Training - £500 (Variable)

We want our partners to succeed, whilst operating to our ethos of quality and customer service. As such, we offer extensive training to a new Franchisee with emphasis wherever it is required. As a standard, we provide training for use of the till and the back office of the till, which allows you to view live sales and stock statistics using very powerful and visual software. This software is fully integrated to our warehouse and our own stock system so that stock ordering and management is as simple as possible whilst also avoiding the major pitfall of many franchise offerings where stock to franchisees can be an issue. Training also covers our relevant internal procedures, such as returns and relevant policies. Additional training regarding electronic cigarettes in general can be added if required, with one session free of charge followed by further training at Â£300 per day plus travel.

Initial Stock - £3,500 (minimum)

It is very important that your initial stock levels are sufficient. We therefore have a minimum stock value which must be available for launch. We will work with you to set your initial stock, ensuring that you get the stock you actually need to give you the best possible start. We are happy to continue to discuss your stock order with you at any time following your launch wherever you feel you need assistance. Following the initial stock order there is no minimum spend or quantity other than our eLiquids, which hold a minimum order quantity of 10 bottles per flavour/strength.

Get in touch with us today to find out more about becoming a Phoenix franchisee.

Franchise Agreement

We believe that having happy and successful Franchise Partners is beneficial to the Phoenix group as a whole, so our Franchise Agreement has been kept very simple with minimum constraints on our Franchise Partners. We have no lock-in terms and no monthly or annual fees.

The Franchise Licence

Below is a brief summary of some of the main points which are to be agreed within the Franchise Agreement. A Franchisee is expected to adhere to the Franchise Agreement at all times. Continued failure to comply with our terms will result in the removal of the Franchise Licence. The Franchise Licence is leased for a 5 year term. The Licence allows a Franchisee to display our branding and logo in store and on marketing material, and allows access to discount pricing for stock. Within the Licence, the Franchisee will agree that they will only stock our products, unless they receive written permission otherwise. We are not averse to a Franchisee stocking some hardware which we do not provide, but this must be signed off by our quality team to ensure that we maintain our brand image of quality products. Within the Licence, the Franchisee must operate to the high levels of professionalism, expertise and customer service that Phoenix customers are accustomed to.

How to become a Franchisee

Step 1
Compatibility Check: We chat with the potential franchisee to find out if we would be a good fit for each other.
Step 2
Location chosen: Franchisee procures premises.
Step 3
Whitebox shop set up: You make sure that the premises are whiteboxed, and Phoenix provides counters and signage, and makes it a Phoenix branded shop.
Step 4
EPOS till system: We loan our franchisees an electronic till at no charge that allows our electronic stock control system to operate.
Step 5
First stock order: Phoenix assists the franchisee to put together their first stock order based on our experiences of the necessities of a new shop.
Step 6
Advertising and marketing: We can assist our franchisees with advertising and marketing.
Step 7
Launch: At this point, the franchise is ready to go and an opening date is set.
Step 8
Post-launch support: Phoenix continues to support our franchisees post-launch.