Setup & costs

What you need to get started
  • Initial setup

    12633645_930103443754987_7341001309991084376_oWe can support you to start with our smallest-sized unit (36 places) or with a significantly bigger nursery (up to around 200 places) subject to local demand, as we have proven experience in both.

    You will first need to find suitable premises. We support you in this by giving you detailed specifications for the size of unit we have agreed, by visiting your shortlist of suitable premises and by negotiating with landlords on your behalf. If you already have premises in mind or own a building, we can advise you on their suitability.

    The shell of your premises will need to be adapted and prepared ready for our standard fit-out and equipment but we can help you with all that too.

    Premises will need to meet at least the following basic specifications:

    • A minimum of 3.5m2 per baby under 2 years old, 2.5m2 per child 2 years old and 2.3m2 per child 3 to 7 years old across the entire provision.
    • Classrooms to accommodate at least 12 children but not more than 15 children, in each of the three age groups (baby, toddler and preschool).
    • The provision of 1 toilet for every 8 children over 2 years old and up.
    • A separate reception and administration space.
    • A separate space big enough to accommodate a professional kitchen (from upwards of 9m2 for a 36 place unit)
    • Safe and secure outdoor play space adjoining the premises.
    • Good location within the community, good access and adequate drop-off/pick-up parking for parents.
    • If you want to scale your business in the future, you should look out for premises with extra rooms or space that you can easily add later.

    A 36 place unit will need to start with at least 3 permanent nursery nurses supported by another 6 to 9 part-time nursery nurses or apprentices, a professional cook and a non-contact nursery manager. Franchisees starting with a smaller nursery may choose to resource some of these roles from family members.

    We provide everything else you need in our simple and fairly priced ‘turnkey’ package of equipment and services, so you can get started quickly.

    What it costs to get started

    A reasonable total budget for a 36-place nursery including all fees, building works, fit-out and everything in place to open the doors to your first children is about £100,000 before working capital and VAT.

    We are completely transparent in our dealings and our profit within that figure to support your set up is only £12,500. We believe in helping the best franchisees to set up the best and most sustainable businesses in a value-for-money package; we are less interested in the fees we get from selling the franchise.

    The following table details a typical 36-place set up, as an approximate guide:

    • Franchise
    • Franchise fee
      £6,750
    • Turnkey Package
    • IT & office equipment
      £5,250
    • Standard equipment, furniture, fit-out and resources
      £29,500
    • Play yard equipment and surface
      £4,725
    • Professional kitchen
      £23,100
    • Risk assessments
      £260
    • Initial stocks
      £840
    • Corporate set-up & premises inspections
      £1,125
    • Corporate identity, uniforms and signage
      £3,070
    • Launch marketing
      £3,700
    • Documentation
      £300
    • Internal training
      £5,270
    • Third party training
      £1,340
    • Other costs
      £2,500
    • £80,980
    • Building works (example)
    • 130m2 @ £95 per square metre
      £12,350
    • Total cost
      £100,080

    Banks will typically loan around 50% of this investment (subject to status) – so your own investment need only be £50,040 before working capital and VAT.

    We will help you register for VAT, so you will get all of that back anyway.

    What you get for your money
    Contract

    Our franchise agreement is for 15 years (in three 5-year terms). Our management service fees are 9.5% and advertising levies just 1% of gross turnover.

    Territory

    Our standard territory (for a 36 place unit) gives you an area equivalent to 308,000 population or 124,000 households with about 135 schools. Your territory is exclusive and allows you to open one more nursery within its boundary, should you wish to in the future.

    We will negotiate larger territories for larger units and for those franchisees that wish to open multiple units.

    Turnkey Package

    The turnkey package summarised on the previous page is fully comprehensive and provides absolutely all the equipment, furniture, equipment, resources, support, documentation and training you need to set up an excellent nursery.

    Training

    Training is included in the turnkey package and includes:

    • 3 days initial induction (before contract at HQ)
    • 3 days Franchisee Business Development Training (HQ)
    • 5 days Nursery Management Training (HQ)
    • 10 days Mentoring in your own nursery
    • 2 days Paediatric First Aid for all your staff at your own nursery
    • 3 online courses in Food Safety & Hygiene
    • 4 days Kitchen & Recipe Training for your kitchen staff (HQ)  
    • 4 x 2 days Nursery Nurse induction courses (HQ)  
    • 1 day Special Educational Needs Training (HQ)  
    • 1 day Safeguarding Training for all your staff at your own nursery.
    Request a free copy of our franchise information pack

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    Why Stone Eden?
    At Stone Eden Nursery School, you can be safe in the knowledge that your children are our number one priority. We guarantee:
    • Flexible childcare that meets your needs
    • High quality, safe facilities
    • Daily reports on individual achievement
    • Positive, comfortable learning environment
    • Freshly cooked meals on site every day
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