Franchise fees and what you get
How much does a Drive Hire franchise cost?
The cost of a franchise depends on various factors – primarily whether it is a new start-up or whether you are taking over an existing business.
It also depends on the size of the business. See specific cost details below.
The basic licence fee for a start-up Driver Hire franchise is £32,000, which includes;
- Pre-launch franchise support
- 6 weeks’ Foundation Training for you and your staff
- Initial marketing material
In addition, you will need to budget for additional business start-up expenditure including furniture, equipment, signage and professional fees.
We therefore recommend a total start-up budget of £40,000 plus some working capital for a start-up franchise.
Our Financial Planning and Analysis Manager will help you to;
- prepare your 3-year forecasts and
- assess the required working capital.
Driver Hire’s own Deferred Purchase Scheme offers you the opportunity to purchase one of our start-up opportunities with a deposit of £16,000 and an unsecured loan repayable over two years.
This scheme is not available to those looking to purchase a resale opportunity.
The cost of a Driver Hire franchise resale will depend upon the individual business, its trading history, profitability, current trends and the potential for future development. Historically prices have ranged from £40,000 up to £500,000.
Funding of up to 70% is available (subject to status) from the major banks, although you may need to offer security to guarantee the loan. Alternatively, the Enterprise Finance Guarantee Scheme may be applicable.
The Driver Hire franchise model provides you with an award-winning proven system and all the ‘tools’ necessary to build a successful, profitable business. Please view our ‘Support‘ pages to view the high level of support available.
We would expect an established Driver Hire franchise to achieve annual sales revenues of at least £1m with the potential for sales significantly in excess of this figure.
In 2017/18, 50% franchised Driver Hire offices achieved a turnover of over £1m. At this level, net profits should be in the region of 12-15% although this will depend upon individual business mix, gross margins, and overheads.
As with any other franchise business, your individual profitability will depend upon several factors, not least your own effort and hard work, correct application of our system, commercial skills, judgement and market conditions.
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