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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.


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