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Profit & investment

Potential profits from a range of turnovers

We would expect that by taking on an existing centre you could achieve an operating profit of 17% which can rise to around 25% by Year 3. Our Franchise Performance Survey indicates the potential returns:

Turnover Profit
£570k 25%
£400k 22%
£220k 17%

NB: The potential profit illustrations are based on our latest Franchisee Performance Survey. Profits stated include payment of Franchisee fees at 10% but exclude owners drawings, finance charges and depreciation.

Buying an existing business

Exact costs of your investment will depend on the valuation that the owner has placed on their business.

Typically a new owner would need to inject a minimum of £30,000 personal cash or 30% of the total investment. When purchasing an existing business the remaining amount of investment will be a secured loan from one of the major banks. The banks will expect the loan to be secured against the equity within property. With regards to finance, Prontaprint has strong relationships with the major high street banks and we will help you put together a business plan and arrange to put you in contact with them.

 



 

Existing business costs

Typical Investment costs for the purchase of an existing Prontaprint business with an asking price of £85,000

Purchase Price  £85,000
Franchise Fee £5,000
Franchise Package and Training Fees £15,000
Marketing Launch Promotion £5,000
Accountancy Fees £1,000
Legal & Property Fees £5,000
Stock & Work in Progress £3,000
Market Research £1,000
Sub Total £118,750
VAT £5,381
Working Capital £10,000
Total Funding Requirement £134,131

Typical investment costs for establishing a new Prontaprint centre

A new centre would ideally be located on a business park with high visibility. The centre will offer the full range of Prontaprint services, but set up with digital capability only, with litho printing initially being outsourced.

Franchise Fee £5,000
Franchise Package and Training Fees £15,000
Marketing Launch Promotion £15,000
Staff Recruitment £1,500
Equipment Package  £16,000
Shopfit Deposit £5,000
Acountancy Fees £750
Legal & Property Fees £3,000
Stock £1,000
Sage Training Cost £600
Pre-opening Expenses  £500
Sub Total  £63,350
VAT £11,270
Working Capital £20,000
Total Funding Requirements £94,620
Borrowing as % of the Total Requirement 70%
Minimum Centre Owners Cash injection £30,000
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