What is franchising?
Franchising is a licence to operate a proven and successful business model. It is essentially a partnership between an established business and an inexperienced, but enthusiastic budding entrepreneur.
Who is in control?
The franchisee is in control of his/her business, but work to the model and standards of the franchisor
What is management service fee?
The management service fee (MSF) is what you pay for the privilege of operating a Banana Moon Day Nursery. This fee pays for all on-going support including training, legislation updates, marketing materials, maintenance to equipment, HR packages etc.
What is the cost of joining the franchise?
The cost of joining the franchise is £35,000 + vat. You will pay an on-going monthly management service fee (MSF) of 9 ½ % + vat of turnover.
What will be my total investment?
Total investment is entirely dependent on the type of building, location, building work required etc. A typical project in leased premises needs circa £90,000 – £120,000.
Can I get finance?
The Banana Moon model is approved by the main franchising banks; Lloyds TSB, National Westminster and HSBC. Upon presentation of a suitable business plan and depending on your own financial status, banks are prepared to fund projects with advances of 50-70% of requirements.
Do I need to be experienced in childcare?
You do not need experience in childcare. The model is based on you employing a management team to run the nursery. Your role would be as owner/Managing Director. If you do become involved in the day to day childcare, then this is a cost saving to your advantage.
How long will it take to open a nursery?
This is entirely dependent on locating and obtaining suitable premises, applying for D1 planning, completing building work and obtaining Ofsted approval.
Will I need any further equipment other than the standard package?
You will receive all of the equipment you need to open a 36 place nursery for example toys, books, cots, cctv etc. If you intend to open a larger nursery then you would normally only buy the additional equipment as and when you need it (typically after around two years) and this is then funded out of the profits of the business.
How will I find a property?
We will guide you, but you should be prepared to actively search and seek out properties in your area. Banana Moon engages, as part of your package, property agents to help you to search your territory. Once potential properties have been identified then Banana Moon will visit the premises and give their opinion as to suitability.
How large is my territory?
Your territory is based on population and will cover a minimum of 100,000 people. We will on occasions grant larger territories to franchisees who demonstrate a commitment to open more than one nursery.
How much money can I make?
The financial returns vary depending upon the size and the location of your premises. Accurate financial forecasts will be outlined in your business plan prior to you committing to any particular site. Providing you adhere to the plan you will see a substantial return on your investment.
Who does the market research?
We do some research, but the majority of this research is carried out by you. This should include telephone enquiries and nursery visits to all sites in your area to establish costs, standards, staff interaction and occupancy levels. Banana Moon will assist you with these enquiries. We will then assist you to produce a Draft Business Plan to assess the viability of any given site
What help will I receive after my BM nursery opens?
Once your nursery is open you will receive on-going support for yourself and your management. Our support team includes several very experienced Nursery Managers who will assist you in the operational aspects, as well as specialist commercial advisors to help you mange the business. You will also have the services of an outside agency that will advise on all your HR and health and safety issues. As you should expect from a well-run franchise, Head office support is continuous.
Can I run another business in addition to the BM franchise?
You are free to have other business interests as long as they do not affect the nursery operation and do not make use or damage the Banana Moon brand.
Can I sell my franchise?
You can sell your franchise at any time subject to Banana Moon approving the new franchisees and in accordance with your franchise agreement.
Will I need to prepare a business plan?
If you are going to approach a franchising bank for finance, then a business plan is essential. Our in-house specialist business advisor will assist you in producing the business plan in a format acceptable to the banks. Your business plan and the included financial predictions are your model for the ensuing months and years.