A franchisor will spend time building up a relationship with all the major banks. They meet at least once or twice a year to ensure they are up to date. This will work to your advantage as a prospective franchisee. A bank won't tell you which franchisor to choose but it can help you in your research. It will also look favourably on you when lending you the money.
With an established franchisor banks are prepared to lend up to 70% of the total startup, even though you would normally expect to borrow 50%, says Catherine Hayes, national franchise manager at HSBC.
Because so much money is involved, it is important that you have a good relationship with your bank manager. For all of the franchisors, initial costs - including franchise fee and working capital - were more than £100,000, and, as a franchisee, you would typically have to account for around 30% of this.
The Prontaprint fee and package will cost about £20,000, however there are fees and set up costs on top of this. Minimum total investment is estimated at £120,000, and the minimum personal investment is about £35,000.
The exact costs of setting up a Kall Kwik Centre will vary depending on location and whether you set up in a new location or purchase an existing business. However the minimum personal investment is £45,000. The remaining costs are approximately £119,000 which pays for the shopfitting, training and working capital.
Don't expect to save money by buying an existing centre though. Resale centre costs can be higher than the cost of setting up a centre from scratch. Kall Kwik says a resale will cost roughly £164,000, whereas the cost of setting up a new centre is about £30,000 less.
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