Franchising is a having a license to operate a proven business model. It is a partnership that exists between a budding entrepreneur and an established business, equipping the entrepreneur with a proven business model and the necessary support to grow a successful business.
The franchisee is in control of the business, however, they must adhere to the model and standards of the franchisor.
The Management Service Fee (MSF) is what you, the franchisee, pay to operate a successful Banana Moon Day Nursery. The fee covers all on-going support and training, legislation updates, marketing materials, equipment maintenance and packages for running all the departments.
The investment required to join this proven franchise is £47,500 + VAT. This covers an industry-leading equipment pack, which includes all of the furniture, toys, books and games that you will need. In addition to this we also include a new ICT pack, incorporating a 55″ multi-touch interactive screen with 4 connected handheld tablets. To cover the monthly support and third-party services there is an on-going monthly service fee (MSF) of 9.5% (+ VAT) of turnover.
This can fluctuate depending on the building, location, and any work required. A typical project in leased premises requires circa £150,000-£200,000.
We have a very strong relationship with the main franchising banks, Lloyds TSB, NatWest and HSBC. We will help you to present a suitable business plan in order to secure the required financial help. Depending on your own financial status, the banks are willing to advance between 50-70% of the required funds.
Your role would be as Owner and Managing Director of the nursery, so you do not need any experience in childcare. The model relies on you employing a management team to run the nursery, and we can guide you and provide support in this process. However, there would be a cost saving advantage to you if you wanted to become involved in the day-to-day services.
This depends on how long it takes to find and obtain suitable premises, apply for D1 planning, complete all of the required building works and attain Ofsted approval.
You will receive everything you need to open a nursery for 36 children with toys, books, cots, and security equipment, for example CCTV. If you want to open a larger nursery, then you will need to buy the extra equipment as and when you need it (typically after two years) and this will be funded by the profits of the business.
We expect you to have the attitude of looking for properties yourself, however we will guide you in your search. Banana Moon engages property agents as part of your package, who will help you search for premises. Once all potential locations have been identified, then Banana Moon will visit the premises to check whether they are suitable.
Your territory will cover a minimum of 100,000 people, and will be based on the size of the population. We occasionally offer larger territories to franchisees who demonstrate a commitment to opening more than one nursery.
Accurate financial forecasts will be outlined in your business plan prior to committing to any particular site. Providing you properly adhere to the business plan you will see a substantial return on your investment. The financial returns will of course vary depending on the size and location of your premises.
The vast majority of market research will be carried out by you. This should include telephone enquiries to local nurseries, and site visits to establish costs, standards, staff interaction and occupancy levels. We will undertake some research ourselves, and assist you with theses enquiries, and then we will help you to produce a draft business plan to assess the viability of a given site.
You will receive ongoing support for both yourself and your management once the nursery is open. We have several very experienced nursery managers who will help you to operate the nursery, and specialist commercial advisors who will help you manage and grow the business. You will also have access to the services of an outside agency who can advise you on HR and health and safety issues. As with any successful franchise, your head office will receive continuous support in order to ensure the successful running and growth of the business.
Yes, you are free to own other businesses so long as they do not affect the nursery in any way, and do not make use of or damage the Banana Moon brand.
Yes, you can sell your franchise, providing Banana Moon have approved the new franchisee, in accordance with your franchise agreement.
A business plan will be essential for approaching a franchising bank for finance, and for growing a successful business. Our in-house specialist business advisor will assist you in producing your business plan in a format acceptable to the banks. This tailor made business plan, as well as financial predictions and models, will ensure your success in the coming months and years.