License Fees

The fees and costs payable by the Area Developer to us are:

  • License fee
  • Entrance fee
  • Letter of Credit
  • Costs for certain services
License Fee

The license fees payable by the Area Developer amount to 25 % of all invoiced sales by the Area Developer in the Territory, with a 50% discount during the first 12 months of operations. They are charged and paid on a monthly basis.

Entrance Fee

The entrance fee for the right to become an Area Developer is payable at the signing of an Area Development License Agreement and amounts to £30,000.

Letter of Credit

A Letter of Credit or equivalent amounting to £10,000 is required to cover any potential liabilities to us.

Costs For Certain Services

Costs for mandatory CRM and administrative systems and web site domains supplied by us will be charged to the Area Developer at cost.

Sales And Profitability Forecast

If the Area Developer initiates the appropriate sales and marketing strategies as outlined by our recommendations at the beginning of the venture, in the case of a territory consisting of Oxford, High Wycombe, Warwick, South Birmingham and Worcester, the following monthly cash projections should be attained:

sales and profit projection uk

Sales last more or less all year, but with three distinct sales peaks in January and before and after the summer holidays.

Based on the distribution of yearly sales seen in Oslo and Stockholm, and the growth of the Oslo market, the figures below should be attainable.

table cash flow

  • A salary to the area developer is included in the costs.
  • The total staff consists initially of two people focusing on marketing and sales, whereof one also providing the Management, and one person focusing on operations.
  • No external project managers are employed during the first year (the two initial staff are expected to lead all events during the first year for training purposes).
  • The marketing budget is set at 6 % of total sales.
  • The Franchise Fee amounts to 12.5 % during the first year and then 25 % following years.
  • Salaries are set at an average of £43,000 per annum including social security and pensions.
  • Travel expenses are those on top of direct travel expenses for events.

Capital Required

Based on our experience and cash flow assumptions, the following capital should be required to start a Green Hat People Venture for a city the size of West London:


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