Page 15 - UK Business Doctors FIM

Notes to the Projections
1. Strategy Reviews: the anticipated achieved sales in each year. This equates to three days per month in the LOW example.
2. Staff Engagement: the anticipated sales that would be achieved in each year—typically charged at £1500 - £3000 per client.
3. Retained Implementation: anticipated sales of strategy implementation days achieved in the year. Retainer fees are typically charged on a monthly basis to enable the client to budget for our services.
4. Management Service Fee (MSF): is the total fee payable on the sales achieved (net of VAT). Set at 10% of monthly turnover up to £10k and 5% of monthly turnover over and above £10k. This is only payable from Month 7, following your six month launch phase, and is subject to a minimum monthly fee that starts at £100 + VAT from month 7, building to £500 + VAT from month 16.
5. National Marketing Levy: payable at a rate of 2% of turnover. Money raised is used to increase awareness of the Business Doctors brand on a national or regional level. This is only payable from Month 7, following your six month launch phase.
6. Local Marketing: provides for cost of local marketing initiatives at the discretion of the Franchise Owner, with an anticpated investment of 5% of projected turnover.
7. Home Office: a contribution to associated costs.
8. Central Services Recharge: This currently includes Email Hosting, mobile access software and email support, web hosting, content management, email marketing , client management and accountancy systems/ software, Experian Company Credit system, and ISO compliance management.
9. Travel and Subsistence: allows for fuel and other travel expenses incurred during the course of normal business activities.
10. Telecoms & Internet: anticipated mobile phone, landline, broadband connection and IT expenses.
11. Accountancy and Bank Charges: will vary depending on the amount of bookkeeping the Franchise Owner does for him/herself, the level of turnover and the accountant/bank engaged.
12. Insurance: Professional Indemnity (PI) and Public Liability (PL) Insurance is included in the Initial Fee for the first 12 months. Thereafter this provides for the anticipated costs of PI, PL and general business insurances required.
13. Sundries: allowance for ad-hoc items of expenditure.
14. Operating Profit: before the Franchise Owner’s drawings and taxation. It does not provide for the cost of the Franchise Package, which has been excluded from these projections to demonstrate the effect of pure trading. Bank and Finance Interest that will be dependent on the availability of the Franchise Owner's own capital and any borrowing requirements have been omitted. Depreciation will vary depending on capital investment and the cost of depreciable assets.
NOTES
VAT has been excluded from the projections as it is assumed Franchise Owners will be VAT registered where applicable. Franchise Owner drawings have not been provided for, as the operating profit, after certain deductions and taxation, will effectively be his or her remuneration and/or re-investment back into the business. All costs may vary depending on the territory and the specific operating conditions of each Franchise, which must all be identified in an individual business plan.
Important: the projections set out above are by way of illustration only. They are based on actual franchisee performance, with a number of franchisees achieving above, and a number achieving below these projections. There is no guarantee that you will achieve these figures, nor is it intended that you should rely on them as a warranty or guarantee.
Franchise Information Memorandum © 2020 Business Doctors Franchising Ltd. Revised 21/01/2020
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