Feedback

Franchise Cost of Hamleys: Detailed Guide

Starting a franchise with a prestigious brand like Hamleys can be a rewarding and profitable business venture. This article provides a comprehensive guide on the franchise costs, requirements, and financial statements of Hamleys (Franchising) Limited for the year ended 31st December 2020.

What is the Franchise Cost of Hamleys?

Hamleys offers franchise opportunities, but the detailed costs, including initial franchise fees, ongoing royalties, and other financial commitments, are typically shared directly with prospective franchisees after an initial assessment. For up-to-date information, it's advisable to contact Hamleys through their official channels.

Financial Statements Overview

The financial statements of Hamleys (Franchising) Limited for the year ended 31st December 2020 provide insight into the company's financial health and operational performance. Here's a summary of key elements from the financial statements:

Independent Auditor’s Report

The report confirms that Hamleys (Franchising) Limited’s financial statements give a true and fair view of the company’s affairs as of 31st December 2020 and its profit for the year. The audit was conducted in accordance with International Standards on Auditing (UK).

Statement of Profit or Loss

• Revenue: £5,523,000 (2020), £9,552,000 (2019)
• Cost of Sales: £2,288,000 (2020), £4,549,000 (2019)
• Gross Profit: £3,235,000 (2020), £5,003,000 (2019)
• Operating Profit: £2,069,000 (2020), £3,789,000 (2019)
• Profit Before Income Tax: £2,069,000 (2020), £3,808,000 (2019)
• Profit for the Year: £1,297,000 (2020), £3,199,000 (2019)

Balance Sheet

• Total Assets: £18,662,000 (2020), £17,780,000 (2019)
• Current Assets: £18,506,000 (2020), £17,591,000 (2019)
• Non-Current Assets: £156,000 (2020), £189,000 (2019)
• Total Liabilities: £4,120,000 (2020), £4,535,000 (2019)
• Total Equity: £14,542,000 (2020), £13,245,000 (2019)

Cash Flow Statement

• Net Cash from Operating Activities: (£136,000) (2020), (£162,000) (2019)
• Net Cash from Investing Activities: £0 (2020), £19,000 (2019)
• Cash and Cash Equivalents at End of Year: £2,000 (2020), £138,000 (2019)

Key Financial Policies and Estimates

• Revenue Recognition: Revenue is recognized from the sale of goods to franchisees, net of value-added tax and promotional discounts.
• Inventory Management: Inventories are stated at the lower of cost and net realizable value.
• Impairment: Financial assets are assessed for impairment if there is evidence of a negative effect on future cash flows.

Frequently Asked Questions (FAQs)

Are there any other websites where I can submit my queries for a Hamleys franchise?

• No. The only official website for franchise queries is Hamleys. Be cautious of any other websites claiming to be associated with Hamleys.

Are there any franchise agents who help in procuring a Hamleys franchise in return for a commission or fee?

• No. Hamleys has not authorized any franchise agents to act on their behalf. Any person claiming to be an agent and requesting a fee or commission is not associated with the company.

What are the costs involved in starting a Hamleys franchise?

• Detailed financial commitments, including franchise fees and royalties, are provided to prospective franchisees after an initial assessment. Contact Hamleys directly for the most accurate information.

How can I get financial details such as profit margins and ROI?

• Financial details are shared with prospective franchisees after they have been shortlisted.

Am I expected to be involved in the daily operations of the franchise?

• Yes, franchisees are expected to be actively involved in the business, community, and success of the franchise.

I have submitted franchise forms multiple times but haven't received any reply.

• Due to a high volume of queries, responses might be delayed. Ensure your form is complete to increase your chances of receiving feedback.

Conclusion

Starting a Hamleys franchise offers a promising business opportunity with a globally recognized brand. Understanding the financial commitments and requirements is crucial for a successful venture. For more detailed and updated information, visit the official Hamleys website and follow the proper application process.