Set Up Costs
Your decision to open an in-toto franchise is not just about lifestyle, it’s also about making money and a return on the capital investment made.
The cost to set up will depend on the location of the Design Studio, its size and the on-going running costs.
A typical in-toto studio costs approximately £105,000 to set up plus £25,000 in working capital. So you will need available funding of around £130,000.
This made up from:
Initial Capital: £45,000
Bank Loan (Mid Term Finance): £60,000
Overdraft Facility (Short Term Finance): £25,000
A key benefit of our business model is that it is cash positive. In other words, you receive your sales ledger before paying your purchase ledger.
What figures can you expect to generate in turnover?
Once again, these figures are dependent on location of property, demographics, volume of shoppers and the potential and aspiration of the franchisee.
The one thing that we do make sure of is that we give each franchisee the right location in order to meet their business objectives and offer the best training and on-going support in order for them to continue to be successful.
Year 1: £400,000 - £600,000
Year 2: £450,000 - £650,000
Year 3: £500,000 - £700,000
(Figures are exclusive of VAT)
These are suggested turnover figures – in fact, many of our new franchises have reported figures in excess of £650,000 in Year 1.
Operating Costs of a Typical in-toto Studio
Year 1: £83,000
Year 2+: £108,000
(Figures do not include loan repayments, depreciation or distributable income but do include suggested employed salaries)
As always, these figures are dependent on property – the main overheads being rent & rates and employed salaries – the day to day running costs are quite low and importantly our studios don’t hold stock – each of our kitchens is ordered and produced for every customer. After the first year, most in-toto franchisees will take on additional employees to support the growth of the business.
Dependant on how you decide to distribute your income and the overall profitability of the business, a typical in-toto franchisee can expect to take home £50,000 - £150,000 pa.
Find out even more about joining the in-toto family and setting up your new business. If you'd like to talk anything through, please give us a call on 0113 3315 100.Download our Franchise Brochure