Franchising Eggfree Cake Box – A Case Study

Ashtons Franchise Consulting assisted in franchising Eggfree Cake Box a couple of years after their launch in 2008. The business has seen impressive growth year on year – we spoke with founder Sukh Chamdal about their experience of franchising.

Basic information:

CEO:
Sukh Chamdal

Founded:
2008
Became a PLC in 2018 – which allowed the franchisees to own a share of the company.

Franchisees:
158 in the UK….
….of which 32 are multi-unit franchisees (with 2 to 8 units each).

Number of shops:
180 plus 19 kiosks in shopping centres and supermarkets.

What they do:
They produce egg free, fresh cream celebration cakes, on demand, to be picked up on-site or delivered to the customer.

Why they’re great:
They cater for almost every market – as there are no eggs in the product those with religious or dietary requirements can eat them.

Q&A with Sukh:

You can watch the full video interview with Sukh here:

Why did you choose to franchise the business?
Because the franchisees provide the capital to expand and the best managers are the owner-occupiers, aka the franchisees, as they have an invested interest in their business.

What is the franchise model?
All franchisees operate from a shop and there are now some kiosks in shopping centres (as an extension of the shop). Franchisees buy all supplies, except fresh fruit, via the franchisor. They order online, it comes to their door, why run around as “your time is so valuable”.

How has Covid affected business?
It’s actually “been a boom year”. They were closed for 6 weeks during the pandemic, and took advantage of the furlough scheme, but then paid that all back as there was a positive bounce back from their customers. When one franchisee’s store had to completely close due to a Covid outbreak another franchisee stepped in with their team to get it re-opened.

Why did you use Ashtons Franchise Consulting to help you?
“There are very few specialised franchise development companies out there – we liked the pitch from Ashtons and meeting them at a franchise exhibition meant it was the start of our working relationship”.

What’s the biggest lesson you’ve learnt as a franchisor?
The franchisees have come to you because they want to open a business, but they don’t want to take the risks that are normally associated with starting a business, so being a decent franchisor is giving the franchisees 99% of the processes, which the franchisees just need to follow. The franchisor’s job is to communicate to the franchisees that they should “just follow and do what you’re told”. It’s all about communication.

What’s your best tip for other “would be” franchisors?
First, prove that your business works. The franchisee should make lots more money than the franchisor. “You’ve got to remember that unless the franchisee makes money, you won’t make money”.

What does the future look like?
It looks bright, as the expansion plans are on target. The intent is to solidify the position of being the biggest fresh cream celebration cake company in the UK.

Want to know more?

Enquire about the Egg Free Cake Box Franchise Opportunity.
Enquire about Ashtons Franchise Consulting helping you to franchise your business.