Franchising is essentially a joint venture between Fan Milk Plc and the franchise taker or “franchisee”. Contribution to investment from Fan Milk is eighty percent (80%) while the franchisee contributes the balance i.e. 20%. On average, franchisee’s commitment is between one-and-a-half to two million Naira (?1.5 – 2 Million).
Assets provided at franchise outlets include deep/chest freezers, upright freezers, glass top freezers, chillers, sales points i.e. bicycles and pushcarts etc. , and diesel generator. Uniforms, caps and umbrellas are also provided for franchise outlet sales staff (vendors). See page 23 for specification and some pictures of these assets.
Accommodation acceptable for franchise outlet should have an internal space of at least 30m2 for storage equipment and administrative functions. Externally, at least 60m2 is required for the sales points, generator, and industrial waste bin. It is important also that delivery vehicles have access to the outlet.
Fan Milk delivers products to customers that order at least N150,000 worth of products at a time, but franchise takers as other customers, have to collect their orders from a distribution centre if they purchase below this amount. Franchise takers are expected to purchase at least half-a-million Naira (N500,000) worth of products per month. Most franchise outlets perform well above this target.
A typical day at a franchise outlet begins as early as 7am when vendors are given products. Fan Milk bicycle boys as the vendors are popularly called, are ubiquitous. At the end of the day’s sales they make their returns to the manager of the outlet. Peak sales occur at weekends, at festive periods and in the dry season. On good days, some outlets close as late as 9pm.
In every locality in the country, the recurring experience of the vendors is that loyal customers, in teeming numbers, are waiting to buy. Demand outstrips supply.