The initial cost of setting up a tailor made franchise is £9000. This sum covers:
- Consultations to determine suitablility for the franchise and establish an area of operation
- Establishment of a franchise agreement, where obligations of the franchiser and franchisee are laid out
- Initial training in tailoring and business management
- Assistance in finding and fitting a suitable premises for the business
The on-going fees for the franchise are based on the Gross Revenue of the business. The following fees are payable monthly:
- Management Service Fee - 8% of Gross Revenue
- Marketing Contribution - 2% of Gross Revenue
There are additional costs involved with running the business, including (but not limited to):
- Rent on your premises
- Purchase or rental of specialist and non-specialist equipment (sewing machines, overlockers, tables, computer, etc)
- Utility bills - heating, lighting and power
- Raw materials (threads, cloth, etc)
- Purchase and maintenance of a suitable branded vehicle for deliveries
- Staffing costs - wages, taxes, NI
- Additional marketing overheads
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