Our most frequently asked questions about franchising with Banana Moon Day Nursery. Can’t see the answer to one of your FAQs? Our dedicated team are happy to help – contact us today!
Frequently asked questions
Franchising is having a license to operate a proven business model. It’s a partnership that exists between a budding entrepreneur and an established business. The latter equips 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 ongoing 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 include a new ICT pack, incorporating a 55-inch multi-touch interactive screen with four connected handheld tablets.
To cover the monthly support and third-party services, there’s an ongoing 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 £300,000-£400,000.
We have a very strong relationship with the main franchising banks: Lloyds TSB, NatWest and HSBC. We’ll 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 owner and managing director of the nursery, so you don’t 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 and information about 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 and apply for E class planning. You’d also need to complete all of the required building works and attain Ofsted approval.
You’ll receive everything you need to open a nursery for 45 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). 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 these enquiries. We’ll then help you to produce a draft business plan to assess the viability of a given site.
You’ll receive ongoing support for both yourself and your management team once the nursery is open. You’ll have an experienced Head Office team on hand, as well as specialist commercial advisors who will help you manage and grow the business.
You will also have access to the services of an outside agency, which can advise you on HR and health and safety issues. As with any successful franchise, you will receive continuous support in order to ensure the successful running and growth of the business.
Yes, you are able to run another business however it must not have any direct or indirect interest in any competing business or in another franchise business.
Yes, you can sell your franchise – provided Banana Moon has 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.
Are you ready?
We are able to offer the highest level of support.
Contact us today to find out more information.