Based on the experience of VIP Day Centre, we anticipate that as our brand becomes more established, the potential exists to significantly increase revenues. We would expect an established VIP Centre to achieve an operating profit (before franchise owner earnings and finance costs) of at least 30%.
Our Franchise Fee is £30,000 (ex. VAT) with an ongoing royalty fee of 7% (ex. VAT) 2% Marketing levy and 5% Management Fee. There will be an extra charge per month to head office for your own HR system, Central Management system, phone line wifi and email.
This franchise will be applicable for a personal loan for business purposes – a Start Up Loan is a government-backed personal loan available to individuals looking to start or grow a business in the UK. In addition to finance, successful applicants receive 12 months of free mentoring and exclusive business offers to help them succeed. The loan is unsecured, so there is no need to put forward any assets or guarantors to support an application. All owners or partners in a business can individually apply for up to £25,000 each, with a maximum of £100,000 available per business.
If you are looking to fund through the banks for this franchise, then we can help. We work with accredited brokers who in turn liaise with the banks who will calculate how much money you may be able to borrow. They work with some of the leading banks in franchising as well as other franchise finance specialists. They will advise on your borrowing potential as well as how to approach a bank for finance. We offer you the opportunity to put any franchise finance related questions to one of the leading franchise specialists in the UK, who can identify the true cost of buying a franchise, the importance of having a business plan and what should be included in it.
You may also want to reserve additional territories to allow for the growth of the business in your local area. Additional licenses are £30,000. This ensures that you “own” a wider area for when you want to expand the business. This is very important if you are considering opening in a large urban conurbation. Having reserved additional territories, you can then raise further funds when you begin expansion.