FAQs

What is franchising?

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.

Who is in control?

The franchisee is in control of the business, however, they must adhere to the model and standards of the franchisor.

What is a Management Service Fee?

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.

What is the cost of joining the franchise?

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.

What will be my total investment?

This can fluctuate depending on the building, location, and any work required.  A typical project in leased premises requires circa £150,000-£200,000.

Can I get finance?

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.

Do I need to be experienced in childcare?

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.

How long will it take to open a nursery?

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.

Will I need any further equipment other than the standard package?

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.

How will I find a property?

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.

How large is my territory?

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.

How much money can I make?

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.

Who does the market research?

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.

What help will I receive after my BM nursery opens?

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.

Can I run another business in addition to the BM franchise?

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.

Can I sell my franchise?

Yes, you can sell your franchise, providing Banana Moon have approved the new franchisee, in accordance with your franchise agreement.

Will I need to prepare a business plan?

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.

1. Welcome to Banana Moon World

It’s a great place to be – find out what makes our nurseries so popular with children and parents and learn how we’ve managed to generate exceptional growth. You could soon be a part of that.

2. Banana Moon Beginnings

It all started in 2006 when one of our directors struggled to find quality childcare – so he opened his own nursery! Offering excellent, affordable childcare in a home-from-home environment, Banana Moon was born.

3. The Business behind Banana Moon

Running a nursery doesn’t have to be hands-on – operating a Banana Moon Day Nursery is rewarding on many levels. The business is extremely profitable and can be structured to suit your financial and personal aims.

4. Location, location, location

Location is key and if you join us, we’ll help you to find the ideal property in the perfect location that fits your business plan. We’ll assist with design and layout, then perform a Feasibility Study.

5. The journey from build to launch

We’ll help to give your nursery that ‘wow’ factor and see you through to your first Open Day. Our marketing and in-house recruitment teams will pull out all the stops to get you started in style.

6. Getting stuck in

Once your nursery is open, your role will vary depending upon how involved you wish to be. We’ll advise you on regulatory staffing requirements and required roles and you can see where your skills best fit.

7. We only succeed if you succeed

We’re here to help you in your venture, so you can develop your business and generate income as quickly as possible. We’ll ensure that your business matches your ambitions and grows at your desired pace.

8. What’s in the Banana Moon Franchise Package?

Well, everything you need to get your nursery off the ground as quickly and easily as possible. The full package is available for £47,500, followed by a monthly fee of 9.5% of the total monthly sales income.

9. Buying into Banana Moon

Our franchisees typically invest between £120k and £180k (not including property purchase or rental costs), meaning you should have £60k ‘liquid’ capital reserves before applying for a franchise, with remaining funding from the bank.

10. What you can expect to achieve

To indicate your possible performance, turnover of smaller nurseries is around £240k with a net profit of around £50k per year. Larger settings can reach over £1m turnover with a net profit of around £200k.

11. Could you soon be a Franchisee?

If Banana Moon sounds like the business for you, please get in touch. We can show you first-hand how the business works, so you can experience how it feels to be part of Banana Moon World.