What Other Investment is Required?
Alongside the franchise fee, you will also need £62,417 plus VAT for the complete fit-out of your production unit including ovens, walk-in fridges, freezers and all other equipment.
In addition, every business needs an adequate amount of working capital to get if off the ground. We recommend you have at least £25,000 of working capital (you might need more depending on your needs) for items such as stock and supplies, utilities, wages, fuel and customer debtor days. These costs can be funded through bank loans. Jasper’s works with the franchising teams at Lloyds, Natwest and HSBC, and can ensure you talk to the right people.
In addition to the one-off costs, as with all franchises, we require an ongoing Management Service Fee (MSF). With Jasper's though you don't pay any MSF for the first six months. After six months, the MSF is 10% of your turnover of up to £5,000 a week which is payable to us on a monthly basis. This percentage will reduce on turnover above £5,000 a week as we believe you should be rewarded not penalised for growing your business. The Management Service Fee covers the costs of our monthly support activities, including:
- Ongoing development and updating of Jasper’s systems
- Continuous research into new products and suppliers
- Regular reviews of your business's performance to help your continual growth
- On-site support from our team
- Support in converting leads into clients eg tendering for contracts
- Development of your local sales and marketing strategies
- Lead generation through head office sales and marketing activity
- Continuous development of the Jasper's brand, website and marketing material
We have spent years working on our business model and systems. Without the monthly management fee we would not be able to keep our support structure in place for the benefit of all our franchisees.
You will need to invest your time too. If you can't dedicate yourself exclusively to your franchise you will struggle. Starting and growing a business takes focus, effort, energy, commitment and time above and beyond anything you will ever have experienced.