Earn More with RED
RED is proud of the franchise packaged offered and the support we give to our franchisees. In fact, we believe that we offer the best value franchise in the market compared to our peers and also when compared to life as an independent.
To support this claim we have provided an illustration. By joining RED, you could earn over £2,000 more per annum on a full franchise when compared to other national driving schools, and significantly more than being independent.
Not every franchise package is the same and it is often the detail behind the headlines which could make a big difference to your business and the ability you have to maximise your income.
Want to discuss your earnings potential? Call now on 0800 688 8054.
| RED / AA / BSM / INDEPENDENT PRICE COMPARATOR | |||||||||||
| RED | AA(1) | BSM (1) | Independent | ||||||||
| Weekly | Full(2) | Brand | Standard | Mileage | Solo | Prestige | Standard | ||||
| Income | |||||||||||
| Income per week(3)(4) | £718 | £718 | £718 | £718 | £585 | £718 | £718 | £585 | |||
| Costs | |||||||||||
| Franchise Fee | £205 | £105 | £210 | £125 | £112 | £300 | £210 | £0 | |||
| Charge for pupils(5) | £20 | £20 | £38 | £38 | £0 | £0 | £38 | £0 | |||
| Car: Rental, Insurance, Maintenance(6)(7) | £0 | £115 | £0 | £75 | £0 | £0 | £0 | £115 | |||
| Car: Diesel Supplementary Fee | £0 | £0 | £25 | £25 | £25 | £25 | £25 | £0 | |||
| Marketing | £0 | £0 | £0 | £0 | £50 | £0 | £0 | £50 | |||
| Cost per week | £225 | £240 | £273 | £262 | £187 | £325 | £273 | £165 | |||
| Net Income per Week | £493 | £478 | £446 | £456 | £398 | £393 | £446 | £420 | |||
| vs. RED Full Franchise | -£48 | -£37 | -£95 | -£100 | -£48 | -£73 | |||||
| vs. RED Brand Franchise | -£32 | -£22 | -£80 | -£85 | -£32 | -£58 | |||||
| Annualised | |||||||||||
| Assumed number of Working Weeks | 49 | 49 | 49 | 49 | 49 | 49 | 49 | 49 | |||
| Introductory Franchise Free Weeks | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 0 | |||
| Net Annual Income | £23,962 | £23,209 | £21,604 | £22,188 | £19,375 | £18,942 | £21,604 | £20,242 | |||
| vs. RED Full Franchise | -£2,358 | -£1,773 | -£4,587 | -£5,020 | -£2,358 | -£3,720 | |||||
| vs. RED Brand Franchise | -£1,605 | -£1,020 | -£3,834 | -£4,267 | -£1,605 | -£2,967 | |||||
| Notes: | |||||||||||
| (1) – Sourced from AA and BSM Franchise brochure, March 2013 | |||||||||||
| (2) – Assumes instructor location is outside the M25 boundary | |||||||||||
| (3) – Assumes delivery of c.33 hrs tuition per week. Lessons are at an average price of c.£21.60 (except ‘AA Solo’ & ‘Independent’) | |||||||||||
| (4) – Assumes ‘AA Solo’ & ‘Independent’ lesson prices discounted by 20% to reflect the premium that a national branded driving school can command | |||||||||||
| (5) – Based on AA (Standard & Mileage) and BSM (Standard) charging an average of £30 per pupil versus RDS charging £16 for a pre-paid pupil. Assumes national schools provide 1.25 pupils per week |
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| (6) – Based on weekly rental charge plus estimate of average weekly insurance and maintenance costs | |||||||||||
| (7) – AA Mileage car cost assumes average lesson is 15 miles and charged at 15p per mile for every 1 hr lesson (inc travel to and from) | |||||||||||
