We’ve got a great franchise business that delivers a ROI to our franchise partners from the start. This happens because we re-invest a large portion of the franchise purchase fee back into the first year of operation of new franchisees.
Let me explain:
A Raring2go! franchise territory costs £12,995.00 + VAT. Check out what we include in our Start Up Package HERE
It’s a long list of individual components that represents great value and underlines our commitment to our new franchisee partners from day one.
Two particularly significant parts of our start up package are:
- no licence fees for the first nine months
- the first three magazine print costs covered
The value of these two elements is over £9,500.00. This is what I mean when I say we re-invest a large portion of the fee straight back in our new franchisee.
Why this makes a BIG difference
With no licence fees or print costs for the first 10 months of operation, all income generated in that period is profit. Sure, there’ll be some operating expenses to cover but from issue 1 you start developing operating capital. This capital will see you through to the end of year one.
If a new franchisee sells £5,000.00 of advertising in issue 1, £6,000.00 in issue 2 and £7,500.00 in issue 3, they will generate £18,500.00 of turnover.
If they draw £1,500.00 / month as salary for the first 9 months this will leave a surplus of £5,000.00 which will cover licence fees and print costs of issue 4 and possibly 5. Remembering of course that issue 4 and 5 will also be generating income.
A new franchisee capable of generating maximum yield in their first three magazines could generate a turnover of £25,000.00.
A Raring2go! franchise is an appreciating asset. Hard work and commitment are needed to achieve success. But success is achievable and made more easily attainable thanks to the re-investment back in to new areas from day 1.
Note:
We recommend a low monthly salary to begin. The figures quoted above have been achieved by new franchisees. Once online income starts (this takes a little time to build audience) the turnover grows yet outgoings remain the same and are fixed. We suggest leaving your investment capital in the business. You will recover it and more when you re-sell your territory.
