Street Corner
Street Corner offers convenience store franchises selling food, beverages, and sundries in designated territories; known for quick access to essentials; part of the broader retail and convenience store industry.
Street Corner franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Street Corner Store under a franchise agreement ranges from $128,199 to $595,699 for an Express Store and from $287,399 to $702,199 for an Urban Market Store. This includes the fees that must be paid to the franchisor or its affiliates, as well as other expenses not specified in this range [p.1].
What is the initial franchise fee?
The initial franchise fee is $30,000 and it is non-refundable except under limited circumstances as described in Item 5 [p.12, p.23].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of weekly gross sales [p.117, p.20]. Advertising fees are expensed as incurred by the company [p.87]. This isn't specified in the excerpts regarding exact amounts or details beyond these general statements.
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement isn't specified in the excerpts. However, according to [p.143], if certain conditions are met, including satisfaction of the terms of the Agreement, you have the option to renew the franchise for two additional five-year terms. This renewal is not available if the business was previously operated under a prior Franchise Agreement with the franchisor or its predecessors.
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires the franchisor's approval. The franchisor may refuse a transfer for good cause, which includes but is not limited to unspecified criteria [p.213]. This approval indicates only that the transferee meets the franchisor’s current criteria and does not guarantee the success of the business [p.141].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.217]. This isn't specified in the excerpts for specific grounds of termination by the franchisor beyond legal grounds.
What financial requirements — net worth and liquid capital — do I need to qualify?
The franchisor's most recent financial statements must show a net worth of at least $100,000 for you not to potentially require an escrow arrangement on your initial investment funds [p.6, p.214]. Additionally, as a franchisee, you are required to maintain sufficient working capital to fulfill your obligations under the agreement [p.128]. This isn't specified in the excerpts regarding specific liquid capital requirements.
Do I get an exclusive or protected territory?
You do not receive an exclusive territory, but during the term of the Franchise Agreement, provided you comply with it and do not default on your obligations, the franchisor will not establish another franchise in your designated territory. [p.38] However, there is still potential for competition from other outlets owned by the franchisor or other competitive brands within your territory. [p.38]
What training and ongoing support does the franchisor provide?
The franchisor provides initial training for the managing owner and other designated personnel before opening the franchise business [p.115]. Ongoing training of employees must conform to the franchisor’s standards and is the responsibility of the franchisee after completion of the initial program [p.115]. The franchisor is obligated to provide ongoing assistance as reasonably required for store operations [p.87, p.72].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor does not make representations about future financial performance or past financial performance of company-owned or franchised outlets [p.48]. However, if you are purchasing an existing outlet, the franchisor may provide actual records of that specific outlet's performance [p.48]. This isn't specified in the excerpts for new franchises.
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the services and products that are approved by the franchisor, as specified in their system. You must purchase or lease certain source-restricted goods and services from suppliers designated by the franchisor, including branded items like cups, bags, uniforms, and point of sale signage [p.24]. This includes initial inventory items which you must buy from either the franchisor or approved vendors for an estimated cost between $1,000 to $3,000 [p.24].