Oil & Vinegar Franchise

Frequently Asked Questions:

What kind of experience do I need to be considered as an Oil & Vinegar franchisee?

We are seeking entrepreneurs who share our passion and commitment to operating Oil & Vinegar shops in a professional and profitable manner.  The personal (or soft skills) are as important to us as the direct business skills.  We look for such things as prior retail experience, customer relationship management ability, people management, solid business acumen, upstanding community involvement, ability to meet our financial qualifications, a desire to succeed by following a proven operating system, and last but not least, a clear passion for our products.

Do I have to be involved in the business full-time?

Definately! Our model is highly service and relationship oriented.  The presence of an owner in the shop is critical to the ultimate success. Therefore, we are seeking individuals who will commit their full-time best efforts to developing their Oil & Vinegar business. This includes managing the day to day operations of the store, training and developing staff, executing a local store marketing plan, building a special events business, and building the brand identity in the local marketplace.  With this in mind, multi-unit franchise owners will need to build a management team as their business grows, and they are still required to be involved in the business on a full-time basis.

What are the royalties and fees?

Our initial franchise fee is $25,000. If you sign a Multi-unit Franchise agreement, you can secure multiple locations by depositing $10,000 of the initial fee for the 2nd location and $5,000 for each additional location agreed upon. Our current royalty is 5% of Gross Sales.  We do not collect a marketing fee, however there is a requirement for you to invest 3% of Gross Sales on marketing locally to drive consumers to your stores and build brand awareness.

What are the financial requirements to become an Oil & Vinegar franchisee?

or a single store, you will need a strong credit history as well as a minimum recommended net worth of $300K of which ~ $80K is liquid. To be a multi-unit franchise owner, the requirement is a minimum net worth of $500K of which ~ $100K must be liquid. Preferably, there will be a secondary source of income to cover personal living expenses during the first year of the business. The overall cost to open a single store varies significantly based on a number of factors explained below.

How much money can I make as a franchisee?

The profitability of an Oil & Vinegar shop can vary greatly, depending upon many factors.  As with any small business, the owner's passion and involvement in the operations is by far the biggest variable.   Furthermore, the franchisee’s aptitude at building and managing staff, marketing the store, and overseeing all the financial aspects of the business will have a large impact. Other factors include the location of the store, sales volume, occupancy costs, the terms of financing, and other overheads. We do not predict the sales or profitability of any new location. As part of the Discovery Process, we will provide you with a list of our franchisees and locations so that you may contact them directly to discuss economics.  In the end, the results of your shop will be heavily influenced by your involvement in the day to day operations and how you ultimately manage your business as an owner in the location you select.

How long does it take to become an Oil & Vinegar franchisee?

Most of that depends on you and how much time you have to dedicate to the “discovery process” and the availability of acceptable retail space in the location you select.  On average, it should take between 30 – 45 days for you to fully evaluate our concept, for us to get to know you, and to mutually decide whether or not the “fit” is right and for a contract to be signed. Following the signing of a franchise contract, you will begin your location search. It may take 3-9 months to find the right location and negotiate lease terms. Once you have a signed lease, your store should be open in 2-4 months.

When can I review your Franchise Disclosure Document (FDD)?

We’ll provide our Franchise Disclosure Document to all qualified candidates, upon receiving your completed application and only after we have met all of the relevant state registration, filing, and subsequent approval requirements.

What markets are available to open Oil & Vinegar shops?

We have over 100 international locations, but a limited presence in the USA at this time and as such have opportunities in a number of key markets throughout the country. We are actively seeking to expand our franchise network and are in search of single-store and multi-unit operators to be part of our growth.  We are not registered to offer the franchise in certain states.  Please contact us directly to identify specifics.

Can I open more than one location?

Yes, for markets that can support multi-unit opportunities we encourage and prioritize prospects with an interest in multiple shop ownership.

What type of training and support does Oil & Vinegar provide to franchisees?

We provide both initial and ongoing training and support. It all starts with a 2+ week initial training session at one of our company operated store locations in the USA. You, and possibly one of your team, will leave this session high on Oil & Vinegar and ready to open your store.  Once your store is ready for occupancy, we arrive on site to support all aspects of the set-up of the store, installation of systems, merchandising and delivery of additional training for you and your now employed staff. Our team remain at your newly opened store for another 3-5 days to support your initial operations.  Throughout your tenure as an Oil & Vinegar franchisee, you will also benefit from regularly scheduled visits from our support team. In addition, the HQ support team members are just a phone call away.

Does Oil & Vinegar provide assistance with site selection?

Perhaps the most challenging and important decision that you will make is choosing a location. Although our franchisees are ultimately responsible for selecting a site, our Real Estate Consulting Partner will guide you through finding and securing a brand beacon location using our site selection criteria and represent you (and us) in the negotiation of all commercial terms of your lease.

What is the typical square footage required to open an Oil & Vinegar shop?

Current shops range from 900 – 1,400 sq ft. We believe that the optimal size of the shop is dependent on the customer traffic associated with the location, but recommend a location which is square in shape and between 1,000 – 1,200 sg ft. Our Architect  will guide you through our design & build process and ensure you maximize each proposed location.

 

For a financial reward, the franchisee uses the brand awareness of Oil & Vinegar. All shops will be furnished according our established corporate identity. You will also use the know how, technical knowledge and business methods of Oil & Vinegar. 

Financial Investment/Cost Estimates 

The necessary equity capital of the franchisee needs to be at least 20 – 30% of the total investment. 

Average annual gross rents

:   $50 to $100 /sf

Size of Shop

:   800 to 1,200 sf

Location

:   A1 or A2

 

 

Total investment

:   $243k to $493k

 

  

Some highlights

  

Leasehold improvements

:   $50k to $190k

Trade Furniture, Fixtures, and Finishes

:   $50k to $65k

Initial Inventory

:   $50k to $80k

Initial Franchise Fee

:   $25k

Professional Fees

:   $27k to $35k

 

 

Specification formula costs

 

Franchise-fee

:   5% of sales

 We have developed the above estimates based on historical costs and expenses necessary to establish an Oil & Vinegar Shop and operate successfully for a start-up period of 3+ months.

It is possible to spend less or potentially exceed these costs in any of the areas listed above.  Your actual investment will depend upon many different factors.  You will remain solely responsible for all amounts even if the actual amount is higher than projected here.

Factors that will influence your initial investment costs include (but are not limited to):

  • Location of the shop (selected market and retail property)
  • Size of the shop interior
  • Condition of shop space prior to possession
  • Real estate and lease provisions – mainly tenant improvement allowance (TIA)
  • Local economic conditions
  • Time of year for opening
  • State/local taxes
  • City code restrictions/requirements
  • Materials and labor

Please consult your CPA, attorney, or your business advisor for your particular situation before purchasing the franchise. We are not a lending institution and do not provide financing directly or indirectly for any part of the initial investment. Your ability to secure financing depends upon many factors, such as your credit worthiness, net assets, business experience, business plan, and the lending policies of your selected financial institution.

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