Financial Statements Strategic Report Governance Franchise Brands plc Annual Report and Accounts 2018 21 Customer case study “We truly couldn’t recommend ChipsAway highly enough! The repairs to the scratches on our car were completed to an excellent standard with no inconvenience whatsoever. Plus, the cost was so reasonable. Thank you very much ChipsAway". Mrs B Teeside South MEET A FRANCHISEE Ali Hoy ChipsAway, Cardiff Business overview • ChipsAway franchisee since 2010. • Opened Car Care Centre five months after joining the network. • Sales in excess of £300,000 for the past three years. • 60% repeat business. • Team of six including Ali’s wife and son. • Four courtesy cars for customers, providing extra convenience. Accolades • Recipient of the highly coveted ChipsAway “Franchisee of the year award” 2015. Sources of revenue for Franchise Brands Each new franchisee pays an initial fee, currently £29,995. The franchise agreement provides for a number of ongoing monthly fees (fixed and variable), the combined effect of which results in franchisees making a monthly payment to the Group equivalent to 10% of their sales. ChipsAway continues to grow MSF income with 30% of the network now paying turnover related, as opposed to fixed, fees. Additional revenue is generated from the sale to franchisees of products used in the repair process such as paints, lacquer and consumables. For more information visit chipsaway.co.uk Our Car Care Centres have additional capacity and more advanced equipment than our mobile units and can complete larger and more specialist repairs.