|
|
|
|
|
Initial Investment Costs
| Nature of Investment | Estimated Costs | Method of Payment | When Due | To Whom |
| Initial Franchise Fee | $ 25,000 | Two Installment Payments | 1st Installment: due upon signing of Franchise Agreement 2nd Installment: due once site selection determined | The Company |
| Initial Rent & Deposit | $ 1,500 - $ 6,000 | As Incurred | As Arranged | Lessor |
| Initial Inventory | $ 7,000 - $ 8,000 | As Arranged | As Arranged | Vendors |
| Leasehold Improvements | $ 0 - $100,000 | As Arranged | As Arranged | Vendors |
| Signage | $27,600 - $30,000 | As Arranged | As Arranged | Vendors |
| Equipment | $58,000 - $195,000 | As Incurred | As Arranged | Vendors |
| Grand Opening Marketing | $ 5,000 | As Incurred | As Incurred | Vendors |
| Pre-Opening Salaries | $ 3,500 - $ 5,500 | As Incurred | As Incurred | Employees |
| Travel for Initial Training | $ 4,000 - $ 8,000 | As Incurred | As Incurred | Vendors |
| Insurance Deposits | $ 8,000 - $20,000 | As Incurred | As Incurred | Insurance Companies |
| Permits, Licenses & Fees | $ 1,500 - $10,000 | As Incurred | As Incurred | Government Agencies |
| Utility Deposits | $ 1,000 - $ 5,000 | As Incurred | As Incurred | Utility Companies |
| Legal & Accounting Fees | $ 1,500 - $ 2,500 | As Incurred | As Incurred | Attorney & Accountant |
| Office Supplies | $ 250 - $ 500 | As Incurred | As Arranged | Vendors |
| Petty Cash | $ 1,983 | Lump Sum | As Incurred | Self |
| Decor Items | $ 1,000 - $ 3,000 | As Incurred | As Incurred | Vendors |
| Printing | $ 2,700 - $ 5,000 | As Incurred | As Arranged | Vendors |
| Service Fee (through term of contract) | 6% of Weekly Gross Revenues | As Incurred | As Incurred | Franchisor |
| Advertising Fees (through term of contract) | 1% of Monthly Gross Revenues | As Incurred | As Incurred | Vendors |
| Additional Funds (Working Capital) | $10,000 - $20,000 | As Incurred | As Incurred | Vendors |
* This initial investment table reflects a conversion of an existing free-standing building.
|
|