FRANCHISE

Why Franchise with Mikel?

Franchise Buying Process

Duration of franchise contract: 5 years (Renewable)

Total investment amount: Starting from SAR 790,000

Entry fees: Starting from SAR 90,000

Number of franchises around the world: 340

Available Franchise Opportunities in KSA

Our door is always open with great investment opportunities for those wishing to obtain a franchise for a specific region, city, and any number of Mikel store within Saudi Arabia.

Our Concepts

Drive Thru: A total area of 10 to 15 sqm in accordance with the availability of locations in the desired area, will cost SAR 90,000 entry fees.

Shop in Shop: Locations in collaboration with malls, supermarket chains, airports and other joint venues with space of 50 sqm and above, will cost SAR 180,000 entry fees.

Canteen: Total area of 50 sqm including storage area, will cost SAR 180,000 entry fees.

Take Away Store: An area of 80 sqm and above, a main area consisting of storage area. Within these area requirements the bathroom area needs to be taken into consideration, will cost SAR 180,000 entry fees.

Dine-in Store: An area of 150 sqm and above, a main area consisting of storage area. Within these area requirements the bathroom area needs to be taken into consideration, will cost SAR 180,000 entry fees.

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Our construction (fit-out) cost varies according to many different factors such as size, location, special permits, and the mediation of the community. Furthermore, keep in mind that more factors will have to be taken into account for the estimation of the final construction cost of a store:
– If the selected unit is in a new project or is in an older building.
– Whether it is an expensive central spot in the city or in a relatively cheaper yet profitable area.
Mikel Coffee Company KSA does not have in-house contractors that build stores, but we do cooperate and guide contractors/construction companies to aid in the construction of your store successfully, and in accordance to our construction guidelines.

Property Development:

In the creation of a MIKEL coffee shop, the most important factor to take into account for the success of the store is making the «The Right Choice» of the store’s concept. The search for the right store is mediated via Mikel KSA Team in the local area. The location will have to be in a
central area with vast footfall of people walking to and from work and their homes. Another factor to consider is the competition, which we always want to exist since it breeds innovation in the area and it subsequently creates a type of «Center» with stores of a similar nature. A point of interest is always stores because they help visually amplify the eye contact customers have with our business.

Machinery:

Mikel Coffee Company KSA will provide you with a detailed list (model-type-technical specifications-prices) of all machinery that you will need for your Mikel Store. We recommend purchasing these machines from a local supplier within KSA, this is needed so that you will be able to have proper after-sales service.

The total amount for all the machinery needed to have your Mikel store operating properly is starting from SAR 240,000, according to store requirements & availability of the equipments. 

Point of Sale Systems:

Mikel Coffee Company KSA will provide the appropriate amount of Point of Sale (POS) systems depending on the initial design and layout of the store laid out in the construction plans. The price for the POS system is around SAR 23,000, with annual renewal fees of SAR 7,000.

Furniture Allocation:

Furniture allocation will occur after initial architectural designs and layouts of the store by the construction department in Greece are completed. We will be able to know exactly what type of furniture you will need for your Mikel Store and where it will be placed.

Pricing for furniture starts from SAR 80,000 (subject for confirmation) for a store under 75m2, which fluctuates according to the concept you will choose. Naturally, bigger stores will require more furniture than the smaller size concepts, thus leading to higher furnishing costs.

Store Personnel and Operating Hours:

Mikel stores usually operate between the hours of 07:00 am to 01:00 am, which may vary according to the location.

These operating hours will be adjusted according to the market research along with your input. Knowing that our aim is to maximize the efficiency and profitability of your store.

The average number of Mikel store personnel is about 4-8 in total, but this number may vary depending on the size, type of concept, size, amount of expected customers flow, if the owner will be working in the store or not.

There are 2 shifts during the daily operation of the store, in which staff will be replaced by the next shift of the day. The shifts must comply with labor laws of the kingdom for the working days and hours of the staff. Manpower during the shift will depend on the number of customers the store has at the time.

Mikel Provisions, Royalties and Marketing:

The coffee beans, tea, syrups, chocolates, bottled water, raw materials, sandwiches, all desserts, packaging materials, merchandise, and gift items will all be exclusively supplied by Mikel Coffee Company KSA. The costs for the key ingredients, packaging, branded / disposable items (Paper cups, lids, plastic cups, lids, straw etc.) will be calculated according to the store’s monthly consumption. A list of local supply items (raw materials, supplementary items etc.) will be provided to you by us and we will assist you on the selection of the appropriate goods to complete your menu.

Mikel Coffee Company KSA will receive 10% Royalty fee of the monthly gross sales turnover for the First store, 8% for the second store, 7% for the third store and 6% for the fourth store or more. The minimum amount of 2.5% of the store’s monthly revenue must be spent on marketing activities by Mikel Coffee KSA, in order to achieve further visibility in its local area and city which will reinforce Mikel brand worldwide, of which 1.5% of the store’s monthly revenue must be spent on marketing activities by Sub-Franchisee in coordination with and under the supervision of Mikel Coffee KSA preapprovals , such as Bloggers, Influencers etc. and we will provide a guide to help you spend the funds wisely so they can have the best possible consumer outreach. As an example, advertising via Instagram, Facebook, posters, radio… etc. will be held by Mikel KSA team against 1% and the 1.5% to be spent by sub franchise under KSA supervision and approval. e.g. (Bloggers, Promotions. Etc.) An annual enhancement store fee might be required at approximately SAR 15,000 for the store machinery, equipment, or decorations to be updated if need be.

Entry Fee:

The entry fees will be used for:

• The architectural designs (including store and 3D plans).
• Pre-opening support such as site selection and administration costs.
• Providing training about the Coffee & Food production and handling and overall operations.
• Training baristas & waiters (if available) for 2-4 weeks before the opening of the store.
• Providing the supporting team with assistance for finance and POS system (2-4 weeks after the opening of the shop).
• Marketing Consultancy Support.

The cost for a Master or Area / City Franchisee will be discussed & agreed according to the business and expansion timeline plan provided to Mikel Coffee Company KSA for the specific Area / City by the franchisee. It will then be reviewed by the corresponding department and there will be a proposal set upon the expansion plan provided by the franchisee.

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Information email: info@mikelsa.com