About Franchising

What is Franchising?

Franchising is a method of distributing products or services.  At least two levels of people are involved in a franchise system: (1) the franchisor, who lends his trademark or trade name and a business system; and (2) the franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor’s name and system. Technically, the contract binding the two parties is the “franchise,” but that term is often used to mean the actual business that the franchisee operates.

What is a Franchise Disclosure Document and how do I obtain the document?

The Franchise Disclosure Document (FDD) will describe in detail how the Monkey Bizness franchise relationship operates and will specify how the company is organized. It will also contain franchisee contact information so that you can contact our owners to get the information needed for your research. Once you complete our application and after our initial phone call, we will forward it to you.

What are the franchise and royalty fees?

Our initial franchise fee is $27,500. We do significantly reduce this for additional locations you wish to open.  Our continuing royalty fee is 6% of gross sales and our advertising fee is currently 1% of gross sales.  During your first 12 months open, we do reduce your royalty fee to 3%.

Do you provide financing for franchisees?

We do not provide financing for franchisees.  Our franchisees have secured financing multiple ways including through SBA loans, personal investments, and friends and family.

What is an SBA loan?

The US Small Business Administration 504 Loan or Certified Development Company program is designed to provide financing for the purchase of fixed assets, which usually means real estate, buildings and machinery, at below market rates.  An “SBA Loan” is not obtained from the US Small Business Administration, rather it is obtained from a normal bank who uses the 504 program to make the loan.

About Monkey Bizness

What is the typical size of a Monkey Bizness?
The standard Monkey Bizness has two separate play floors and is a “flex” type space.  The ideal size is 12,000 square feet.

The standard Little Monkey Bizness model has one open play floor and is typically in retail space.  The ideal size is 7,000 to 9,000 square feet.

We have designed our facilities to be cost efficient while meeting our customer’s needs. Each of our facilities also has a minimum ceiling height due to the inflatable structures we use.

Do I need to have a location in mind?
You should be familiar with the trade area that you want to develop. We will discuss the options for securing a location during the franchise evaluation process.

What are the typical store hours of operation?
Generally, 9 am until about 6 pm.  Our weekend hours may extend longer.

Do I need to be involved in the operations of my Monkey Bizness?
Either you or a designated Manager must be involved in the day-to-day operations of the store(s).

Approximately how long will it take to open my Monkey Bizness?
It will take about 8 weeks to build your store after you have taken possession of your location. Generally, it takes about 12 weeks to create architectural plans, get permits and select a contractor prior to starting the 8-week construction process.

Financial Questions

How much money do I have to have in order to open a Monkey Bizness?

When we review the Financial Information Section of your application, we look for at least 30% ($100,000 – $200,000) of the average total cost of opening a store to be available as liquid, unencumbered cash or readily redeemable securities (stocks and bonds). We generally do not consider retirement accounts to be liquid assets.

In addition to the liquid unencumbered cash, you will also need to have the resources and/or ability to borrow the balance that will be needed to open the bakery. For example, if you have $250,000 of equity in your home, we will assume a bank will lend up to 80% of that amount (depending on your other liabilities, of course). The total investment ranges can vary depending on the model which you would like to open. If you are receiving outside financial help, perhaps from family members or financial investors, please explain in your application how they will be involved and the payment plan you have in mind.

In addition, you will want to take into consideration personal living expenses if you quit your job to move or complete the startup work. On opening day, you should still have cash reserves as a cushion for the first few months. Keep in mind, that budget is tight.

People are often unrealistic about where the startup money, plus personal expenses, will come from. After signing a franchise agreement, we can help you develop a business plan for a bank. In some instances, we will ask you to meet with banks early in the process to evaluate whether or not you will qualify for a loan.

Do you have any existing stores for sale?
Periodically, Monkey Bizness owners decide to sell their stores. Those are both sad and happy times for us here at the franchise office. Though it’s sad to see a member of our family go, we love the energy and excitement new owners bring to our system and to their store.

If you are interested in purchasing an existing location, we would strongly urge you to contact us.
Our role (the franchisor) in the resale process is to bring you through the application and approval process. This process is similar to the application process for new locations as far as completing a series of telephone Q&As, and receiving our Franchise Disclosure Document (FDD).

 

Things to Know

Cost to Open

Opening Support

Operating Support

Marketing

FAQ’s