Healthy Boost Community Values and Corporate Social Responsibility
Crowdfunding / Franchising
Healthy Boost’s entire business model revolves around giving back to its loyal customers and communities. All Healthy Boost locations will be funded by a unique process involving both franchising and crowdfunding. This technique was implemented due to its highly positive effects on communities and its rapid growth potential. Community members will have the opportunity to purchase a stake in all Healthy Boost locations through the use of crowdfunding.
This enables the company to give a portion of its proceeds back to communities in very direct ways. With community members owning a portion of Healthy Boost’s locations the company will easily be able to reflect and embody each community’s individual values. Additionally, through the use of franchising, community members will be able to purchase operational control of an individual store. Not only will this strategy enable Healthy Boost to open up over 150 locations over the next two years, but each franchisee will be better able to reflect community values.
Our modest goal is to launch with 100 corporate and franchised locations nationwide in order to be able to compete in pricing with Big box stores like walmart
Striving for Healthy Communities
One of Healthy Boosts fundamental values is improving the health and overall, wellbeing of its communities. Its locations will provide only top-quality produce and grocery items. Additionally, Healthy Boost will have a large variety of organic products aiming to help individuals of all ages to live a healthy lifestyle. Along with high quality products, all Healthy Boost locations will contain health experts to accurately answer all questions relating to its products and their health benefits. Healthy Boost’s health experts will include both nutritionists and herbalists. This network will enable Healthy Boost’s customers to be educated during their shopping experience.
The company believes maintaining a healthy diet is directly linked to improving quality of life. A healthy diet combined with physical exercise can improve day to day life, improve life expectancy, and decrease the risk of a variety of diseases. Healthy Boost aims to not only provide the necessary products and services to achieve good health, but also to inspire communities to live a healthier lifestyle.
Live Shopper Program
Healthy Boost recognizes the fact that some individuals are simply unable to shop for groceries due to a variety of reasons. Whether the reason is working multiple jobs, health issues, or a busy lifestyle, the company is here to provide anyone with products virtually. The Live Shopper program is a unique service offered by Healthy Boost. This service involves customers having their own personal shoppers who hand select each item customers request. Additionally, customers can join a live video chat with their shopper in order to create a more personalized experience. Healthy Boost believes this program will also help protect individuals with health issues and immune deficiencies. Therefore, this program further enhances the company’s goal to improve their communities. Along with safety, the Live Shopper service will also improve the comfort and satisfaction of its customers. Healthy boost acknowledges its customers live busy lifestyles and now they can accomplish their daily goals while Healthy Boost covers all of their grocery needs.
Wholesale Partnership and Low Prices
Healthy Boost has established a variety of deals with various grocery manufacturers to procure low prices for its products. Both Healthy Boost and their wholesalers share the initiative to keep prices low for consumers to benefit the community. The company’s wholesalers provide both high quality and low-cost products to all Healthy Boost locations. Healthy Boost has strong support from massive grocery manufacturers such as Pepsi, Kellogg’s, Perdue, Kraft, and many more.
The Healthy Boost business strategy is an integrated process which involves various companies who share the same values and integrity.
Customer loyalty is the most powerful component of the Healthy Boost business plan. All of the efforts the company makes to better its communities create strong brand loyalty. Practices such as crowdfunding, healthy community initiatives, the Live Shopper program, and everyday low prices exemplify the strong-rooted care built into Healthy Boost’s business plan. Consumers recognize and appreciate these efforts and return the favor with their loyalty.
Healthy Boost Franchise Analysis
A Franchise is a business strategy where a franchisor develops and licenses a product or service, then sells the use of their licenses to franchisees in exchange for a portion of the income. This is a very popular business strategy as it is used by thousands of companies worldwide. To become a franchisee there is a variety of costs involved including franchise fees, royalty fees, and advertising fees
The Franchise Fee is a one-time payment owed by the franchisee at the beginning of the deal. This payment gives the franchisee the right to use the Healthy Boost name. The current franchise fee is $30,000.
Revenue Retention and Development Costs
Healthy Boosts locations have a unique revenue break down to ensure all parties are properly compensated. The franchisee and investors will receive a percentage of revenue depending upon the portion of the development each party financed. The franchisee has the option to provide their desired percentage of these cost, the more equity they provide the more revenue they will retain.
The franchisee is responsible for providing the initial franchise fee of $30,000 and has the option to provide a portion of the development costs of the business. Due to their decision-making expertise and large amounts of sweat equity the franchisee will receive 20% of the revenue for providing the $30,000 franchise fee. Additionally, they will receive a larger portion of the revenue if they fund a portion of the development costs. The increases in retained revenue vary depending upon the amount of additional development costs they provide.
Most of the development costs will be funded by the use of crowdfunding. Large groups of investors will receive a portion of the revenue in the form of dividends. This is the investors compensation for aiding in financing the Healthy Boost location. The more each investor provides to fund the development costs, the higher their dividend payment will be. However, a small portion of their revenue will be distributed to the franchisee to compensate them for their day-to-day operating decisions and sweat equity. Below is a chart displaying the revenue breakdown of Healthy Boost locations.
Royalties are payments to the parent company for use of their copyright trademark or patent. Essentially, they are the monthly fees associated with using the Healthy Boost name. Healthy Boost’s franchisees are required to pay a 6% royalty fee to the company. The fee is taken directly out of the net sales of each store. For example, if a store has $100,000 in monthly sales, the royalty fee will be $6,000. 6% is a very typical royalty fee as many large franchises such as Dunkin Doughnuts, Dominos, and Cold Stone charge the same rate.
The advertisement fee is a payment owed to the franchiser that helps to cover their marketing costs. Healthy Boost spends large sums of money to advertise their brand therefore, franchisees must pay a portion due to the benefits they receive from the marketing. The current advertisement fee is 2% of sales. This works the same as royalties, for example, if a store earns $100,000 in sales the advertisement fee will be $2,000.
Franchisee Development Costs and Crowdfunding
The franchisee is responsible for raising 60% of the costs involved with the development or acquisition of their Healthy Boost location. The amount of this expense is completely dependent on the development/ acquisition cost. However, a small percentage of the cost will be paid out of pocket by the franchisee. Healthy Boost has a crowdfunded financing system where a large number of investors contribute to the cost of the new location. In return, the investors receive a share of the profit. The franchisee is solely responsible for managing the crowdfunding process.
The estimated opening costs for the initial setting up and first three months of operation for a new Healthy Boost Bargain Barn ranges between $383,500 and $2,620,800 (excluding the purchase of real estate/land).
The estimate in the chart below comes from the construction and stocking estimates of a minimum 4000 sqft location to a 20,000 sqft location
|Name of Fee||Low||High|
|Real Estate and Improvements||Variable|
|FF&E Signage and Technology||$165,000||$485,000|
|Additional Funds (3 months)||$20,000||$30,000|
The estimated initial range covers from an “in-line” restaurant size up to “free-standing” restaurant size. In-line and freestanding are the two main restaurant types Popeyes offers for its brand.
In-Line restaurants are the smaller version of the franchise and include restaurants located in or at “strip-style” retail shopping centers, premises with convenience stores, travel plazas (or similar locations that sell gasoline), shopping malls, and other food court locations.
Free-standing restaurants are the larger version of the franchise and include restaurants located in a single-purpose, single-tenant building. According to the franchisor, “free-standing restaurants may also include ‘Build to Suit projects, which can substantially lower [the franchisee’s] initial investment costs.” As described in the FDD, in a typical “build-to-suit” scenario, the landlord will deliver a complete building ready for the franchisor to customize the interior. Free-standing restaurants don’t include restaurants located in food courts, any in-line restaurants, or any restaurants located in co-branded buildings.
The next steps after you are approved for a Franchise Licence:
- Site Selection
- Development and Launching of your crowdfunding campaign
- 3-6 months from start of construction until the Grand Opening