Buying a Franchise Business & Franchise Finance FAQs
Deciding to buy a franchise business is a big step - one that can help you secure a bright future and see you properly rewarded for your hard work and determination. At Minster Cleaning Services, our territory opportunities have already helped our franchisee partners to achieve their aims - half of our branches are each achieving sales of more than £1 Million and our top branches are each achieving sales in excess of £2 Million.
Costs to buy a franchise
Q. How much does a Minster Cleaning Services UK franchise cost?
A. For a new territory you will need £28,225 exclusive of VAT for licence, territory and training. In addition, you will need between £40,000 and £60,000 working capital.
Liquid funds for a new franchise
Q. How much money will I need to have readily available for this franchise opportunity?
A. A minimum of £40,000 in liquid funds.
Borrowing to establish a franchise
Q. Where can I borrow the rest of the money?
A. Additional funds can be borrowed through major high street banks, subject to status.
Business franchise agreement term
Q. How long is the term of your franchise agreement?
A. Each franchise term is 5 years, with an automatic right of renewal.
Q. How much profit could I make?
A. Our bigger branches (£2 million+ turnover) can achieve in excess of £200,000 per annum net profit.
Ongoing franchise costs
Q. What ongoing costs are charged by Minster after my initial investment?
A. Minster charges a 7% royalty on monthly branch sales turnover plus a marketing levy. There are no other ongoing revenue streams.
Investing in an existing franchise
Q. If I buy an existing Minster franchise business, apart from the purchase price, do I have to pay any costs to the franchisor?
A. Yes, in addition to the agreed sale price, you will also have to pay Minster £10,000 + VAT for your licence, territory and training. Find out more about current franchises for sale here.
Any other finance related questions?
If you have any other questions regarding buying a franchise or any other aspect of our business contact us on 0800 220 011.