Costs:

The cost of a Coversure franchise is only £20,000 plus VAT.

Your investment will provide you with the very best facilities at the lowest possible cost, and your £20,000 plus VAT will give you

A five year Franchise Contract including access to our products, systems and processes, and outlining your territory
The first three months computer service costs and Professional Indemnity Insurance
One off Software User Licences for 2 System Users
An initial marketing campaign, up to the value of £3,000 tailored to suit your business plan
Start up Printed Stationery Pack consisting of 10,000 Letterheads, 1,000 Compliment Slips, 500 Business Cards, 2 Bank Paying in Books and 2 Receipt Books
2 Bin Laser Printer and Network Card
System Installation
Initial Training including System Use, Accounts, Credit Control, Compliance and Marketing
Agency Support Including Comprehensive On-line Manual
BIBA Membership

Costs of running the business

Keeping your costs to a minimum will be very important to you when you are running your own business. Because of this we have worked hard to keep the costs that we control to an absolute minimum. In particular, the relationships we have with insurers allows your Franchise fee to be only 10% of your commission and fees. The main costs and considerations are outlined below.

Franchise Commissions: Charged @ 10% of commission and charges earned by the branch.
Professional Indemnity: Charged @ £50 per month for a new branch and then when our Group professional Indemnity Insurance is renewed it is based on Commission & Fee Income.
Compliance & HR Services: £20.00+VAT (what do I get for this?)
Basic Computer Services for two users £529.50 plus VAT (Includes postcode look-up service and DVLA registration number look-up)
Marketing Support Services £40.00 plus VAT (what do I get for this?)
Coversure Claimsline: £6.25 per case + IPT on the selling price. This is a charge for the Claimsline service for all wheels based Policies. Branches normally sell this at £20-£30 but they are charged for each and every case regardless of whether they charge the client. (what do I get for this?)
Online Education & Training (Searchlight): £18.50

Other potential costs

Additional Pick User Licence (if required): £300.00
Additional Accuterm Licence (if required): £50.00 You will need to make financial provision for the following additional items: Interest charge: 0.65%. This is a charge for any amount owed by a client that has been paid to the Insurer. (This rate gets reviewed regularly).
Additional Users (Office base only) £30.50
Additional Users (Home base only) £73.00

Other set up costs

The cost of the following items will vary according to the size and location of your premises but you will need to make financial provision for them in addition to your initial franchise fee and ongoing payments to ourselves.

We have shown an approximate cost for guidance and budgeting purposes.

One Off Charges
Carpeting	£500 - £1000
Decoration	£500 - £1000
Furnishings	£500
Insurance (Premises)	£200 - £400
Signage	£750 - £1500
Computer Equipment	£750 - £1000
Fax Machine	£100 (can be leased)
Photocopier	£400 (can be leased)
Telephone System	£1000 (can be leased)
Sundries (Kettle, Tea, Coffee etc)	£100
Accountancy Support	£300 - £500
Legal Fees	£300 - £500
FSA Application Fee	£1500
Stationery (2nd Print)	£300

Ongoing Expenditure in Early Years
Light Heat & Power	£75 - £200 per month
Rent	£500 - £1000 per month
Rates	£100 - £300 per month
FSA Annual Fee	£1,500
Bank Charges	Normally Free for the first year
Credit Card Machine	£30 - £100
Telephone Calls	£200 - £300 per month
Postage	£80 - £100 per month

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Set Up Costs	Other Setup Costs	Cash Flow Forecast Example	Cash Flow Forecast (1st year)	Cash Flow Forecast (3 year)

Costs:

Costs of running the business

Other set up costs

Resources

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