All figures, including the calculated
income are
based on a 5 day week. They have been prepared as a guide and although care has been
taken they should not be interpreted as a guarantee that they will be
achieved or that profit is guaranteed. They are based on our operating
experience and knowledge of the market in the United Kingdom and may be
lower or greater and will depend on the business management and entrepreneurial
skills of the franchisee. The following assumptions have been
made in calculating the figures:
- Each week consists of 5 working days and there are 48 working weeks per annum after allowing for annual leave and bank holidays.
Wages are only paid
once the daily average is expected to increase past 100 bins and an
'Assistant' needs to be recruited to help maximise the cleaning unit's full
potential. The following assumptions have
been made in calculating the figures:
- The assistant is only recruited when there is a business need.
- The national minimum wage is paid, and any bonuses are performance
related.
In subsequent years, higher wages may be paid
depending on the performance and productivity of the 'Assistant'.
The insurance cost covers both
Public Liability and Vehicle Insurance and is based on the
acceptable insurance status of the franchisee. Where a franchisee's status
differs a higher premium may be required.
Monthly insurance payments are made in two parts.
One part is for Public Liability and the other for Vehicle Fleet
Insurance. The following assumptions have
been made in calculating the figures:
- The franchisee is assessed as an average risk, e.g. over 21 years of
age, a clean driving licence and no recent accident or other
downside history.
- Vehicle insurance policy applies to one vehicle only. Further
vehicles will require their own separate insurance.
- Insurance premiums are paid monthly in advance by Bank Standing
Order.
- There are no vehicle accident claims in the first year.
In the event of numerous vehicle accident claims
the premiums could be increased in that year, or subsequent year.
The costs are for the purchase of
consumable supplies, e.g. bin liners and disinfectant, that will be
needed to continue delivering the service after the first
3 months. The following
assumptions have been made in calculating the figures:
- The business grows at the rate calculated.
- There are no increases in the costs of raw materials or
legislation that will affect the price of the item.
The costs will be higher, also
turnover will increase, should more bins be cleaned in the first year
that is calculated.
The costs are on present average pump prices and daily
average mileage of the franchise network. The
following assumptions have been made in calculating the figures:
- No increase in tax on fuel or changes to legislation affecting the
cost of driving.
- The vehicle and pressure pump is operated and maintained in
accordance with the manufacturer's recommendations.
The costs will be higher, also
turnover will increase, should more bins be cleaned in the first year
than is calculated.
The costs calculated are based on the
franchisee carrying out the Franchisor's marketing technique to recruit
new customers to expand the business. The
following assumptions have been made in calculating the figures:
- Leaflets are only posted in conjunction with the Franchisor's
marketing technique.
- The marketing plan which is devised by the Franchisor is fully implemented.
The costs could be higher, also
turnover will increase, should more customers be marketed in the first year
than is calculated.
The costs are calculated on franchisees using the
Franchisor's approved bookkeeping service. The
following assumptions have been made in calculating the figures:
- The bookkeeping service does not increase its service charges
during the first year.
- The franchisee uses only the approved bookkeeping service.
- Franchisees buying the Premium Package get the first three
months free.
The costs could be much higher if,
subject to prior agreement with the Franchisor, an alternative
bookkeeper was used.
The following assumptions have been made in
calculating the figures:
- Franchisees buying the Premium Package pay:
- No management fee for the first 6 months and
then only £100 + VAT
per month for the remainder of
the franchise term.
- No royalty fee for the first 12 months and then
in subsequent years only 5% of
the previous years turnover
payable by 12 equal monthly instalments in the
following year.
- No additional vehicles are leased/hired during the first year.
The costs in subsequent years are
in accordance with the respective franchise agreements, or such lesser
sum as may be agreed from time to time.
The following assumptions have been made in
calculating the figures:
- Subject to status, Franchisees enter into a standard lease/hire
agreement with a leasor.
- Lease costs are not increased by the leasor for both
vehicle/equipment packages during the first year.
The payments are to be made in
accordance with the respective lease or hire agreements.
No deductions for VAT have been made
in the calculations. Franchisees are responsible for registering for VAT
once they exceed the VAT threshold.
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