Franchise into the Digital
Revolution
Franchise Finances
Taking on a
franchise is a major decision and we recognise that becoming
your own boss is not an easy one and requires a great deal of
commitment and hard work; however, it also requires a financial
commitment.
(a) Initial franchise fee
The initial investment is £13,995 (exc. VAT) and includes:
NEWS: Easy Entry Programme £9,995 (exc. VAT)
Offer applies to next three franchises
only
In addition, our franchisee's will join a vehicle
programme, for which we have put in place a vehicle leasing
scheme (together with a number of other financing options)
based on a fully liveried and fitted out vehicle. It is
usual to pay a deposit based on three months' lease payment
(but see also FAQs - deposit included in initial franchise
fee) and then the vehicle is leased over the life of the
franchise.
This, together with a small amount of working capital to
support your business through the first couple of months,
will ensure that you have set the business up in the
correct way.
(b) Ongoing fees
Franchisee's will pay two ongoing fees:
1. A management services fee based on 10% of gross sales
revenue (exc. VAT)
2. A fixed advertising fee of £150 per month, which is a
contribution towards corporate marketing and is spent on
the development of the brand
(c) Franchise projectionsAs part
of the recruitment process we will meet with you to
discuss in detail the franchise projections and the
development of a related business plan, and we will
identify the funding requirements and options.
However, in order to demonstrate the financial potential of
this opportunity, we have provided a brief overview of
franchise:
| Franchise Operating
Projections |
|
|
|
Year 1
|
Year
2
|
|
Please note:
1. These projections are based on actual
performance of the Milton Keynes territory
2. These projections do not include the costs
associated with servicing of any loans or
depreciation
3. These projections do not include franchisee
drawings and tax
|
| Sales |
£50,900 |
£64,800 |
|
| Less cost of
sales |
£12,725 |
£16,200 |
|
| Gross profit |
£38,175 |
£48,600 |
|
| Fees |
£6,890 |
£8,280 |
|
| Total
expenses |
£12,424 |
£12,632 |
|
| Operating
Profit |
£18,861 |
£27,688 |
|
We can even provide you with support in initial funding as
we have worked in conjunction with a number of the leading
Franchise Banks, who will be able to tailor the best
package for your circumstances.
Next
Steps
We do not expect every C&R franchisee to start with all
the knowledge required to run a new business, and that is
why we have put together a comprehensive package of
support. However, we do expect our franchisee's to be:
 |
Self-motivated and committed to the
business |
 |
Hard working and enthusiastic |
 |
A good planner |
 |
Customer friendly |
 |
Business and commercially aware of some of the
aspects of running your own business |
This could be you... so what are the next steps
|