The ongoing cost for Franchisees is a £300 fee paid to the Franchisor per class, per programme i.e. £300 per 6 week class run. (This is not a monthly fee as a programme is 6 weeks long)
Rent/Rates: Franchisees typically work from a home office, so no rent is payable for office space. Room hire can range from £8 per hour to £30 per hour (rare) but the average cost is £20 per hour.
Utilities: N/A – these are absorbed into franchisees’ household bills.
Telephone: £500 per year.
Legal & Professional Fees: We recommend budgeting £500 for accountancy fees for the first year. Although these fees would likely not be incurred until into year 2, they would be associated with creating and auditing accounts from the first year of operation.
Subsequent years accountancy costs increase in line with inflation (modelled at 3% for prudence).
Business Insurance: Up to £500 (but probably considerably less) in year 1, increasing 3% annually.
Meetings & Conferences: £300 per year, covering 3 quarterly Franchisee meetings at £50 each, and an annual conference at £150, rising by 5% per year.
Software Licence Fee: £40 per month to cover the monthly licence fee for a fully integrated Franchise Management System and access to/updates of the Dawn Breakers website. This fee also covers any future additions or adaptations to the CRM system.)
Bank Charges: £20 per month in year one, rising to £30 per month in year three, then £40 per month from year three.
Local Advertising/Print: £100 per month. This may seem low, but remember that a significant amount of your business will come from social media and word of mouth.