Existing territory
An existing territory (or resale opportunity as it can be called) differs from a Start-up territory because you would be acquiring an existing business that is up and running and will have been trading for many years. The business will have office premises and staff, both administration staff and a cleaning workforce.
Each existing territory will be advertised for an individual purchase price which reflects the value of the business. You will need to be able fund this price with a mixture of your own funds and bank borrowing. As a guide we like to see a minimum of 50% of your own money funding the purchase price. Our resale fee is £10,000 plus VAT which is in additional to the purchase price of the business.
You will also need to fund the working capital requirement to finance the cash-flow requirement of the business post-acquisition. We will share our models with you to help you calculate the level of working capital funding that is required.
Start-up territory
For new territories, the initial start-up cost is £20,000 plus vat, which covers licence fee, territory, IT equipment and training, plus a comprehensive marketing launch package. In addition, a minimum of £35,000 working capital plus personal drawings is required.
You will need to make sure that you have everything needed for your first day in business. This includes insurance, equipment and supplies for your first contract, and a bank of potential employees ready to fulfil contracts. Our marketing launch package will help you get those initial contracts through our range of marketing channels, and our operations team will be ready to guide you through your first quote and employing your first member of staff.
Our Franchise Agreement requires you to have your own business premises to work from – this does not include a home office.
Ongoing franchise costs
Minster Cleaning Management Service Fee – This fee is based on branch turnover generated and is payable monthly. We charge this at 7% for all territories.
Marketing Levy – This is 1% of turnover and payable monthly. This covers marketing activities which are managed centrally.
Software Costs – These are paid monthly and cover the licence fees for the network accounting systems and operational software.
Each franchise term is for a period of 5 years, with an automatic right of renewal for an unlimited duration.
