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      New Peckwater Franchise Agreement

      Summary of New Peckwater Franchise Agreement

      KEY CONTRACT DETAILS

      • OWN 100% OF TURNOVER: You will now receive 100% of Net Turnover, minus three fees:
        1. 35% + VAT (42%) PWB fee
        2. 5% + VAT (6%) Marketing fee
        3. Applicable VAT
      • BONUSES: Additionally, you can earn up to 1.7% in performance bonuses.
      • 52% GROSS MARGIN: Your take home pay after fees will be 52% of Net Turnover before including bonuses. 
      • OWN INGREDIENTS ORDERS: You will now have ownership of ingredients ordering through our ordering system (Apicbase). This means you are responsible for placing orders and paying for ingredients.  
      • We will deduct the cost of ingredients via Stripe. To enable this, please update your card details on Stripe using this link. Without these details orders will not be processed. 
      • VAT RESPONSIBILITY: You are responsible for paying VAT on your net payout from PWB.

      WHAT WILL YOUR P&L LOOK LIKE?

      • Including Incremental Labour: You are expected to earn 26.35% Gross Profit and 18.90% Operating Margin 
      • Without Incremental Labour: Your Operating Profit and Gross profit are expected to be the same.  

        Your P&L Including Labour Increases

      ** Without increases in labour, your operating margin would be £527/16.35% on £2,050 of revenue

       

      VAT Treatment

      If you are VAT registered, you will pay VAT on your Net Sales. 

      We will also add VAT to your Franchise Fee and Marketing Fees - however you can claim this back from HMRC. For example, we will charge 35% + VAT for our franchise fee. After claiming back the VAT on this fee, the effective rate remains 35%. 


      Performance Bonuses

      In addition to this new contract, we are also introducing performance bonuses worth up to 1.7% of Net Turnover/1.6% of Gross Turnover. To achieve this payout, you will need to hit minimum operating thresholds outlined in the below table.  

      GO LIVE DATES

      • Your contract start date is the 15th January
      • We will not place orders for you after the contract start date

      APICBASE

      Benefits of Apicbase

      • You can now place orders more than once day a week (area dependent).
      • You are now able to order the stock you need yourself.
      • You now have visibility on what you order and the associated cost.