Similar to our retail agreement, our foundation agreement is also a five year agreement with no rent payable.
As with the retail agreement, our foundation operators' income is based on a percentage of sales - in this case 30%. Under a foundation agreement though, you also have the flexibility to introduce your own food offer, and retain 100% of all food sales, as well as 50% of machine income.
The ingoing costs for a foundation agreement are similar to that of a retail agreement - a £5,000 security deposit and £360 legal fees apply.
Foundation operators are responsible for the following:
- A £1,350 +VAT service charge
- Insurance costs of £520 +VAT p.a.
- Rates, council tax and water (Marston's pay for wet stock, heating, lighting and EPoS)
- Internal repairs
- Decorating fund (cost varies from £1,000-£3,000 depending on the site)