Item 7
ESTIMATED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT
| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made | ||
| Initial Franchise Fee | $25,000 | – | $29,000 | Lump Sum | At signing of Franchise Agreement | The Initial Franchise Fee is paid to us |
| Construction, Leasehold Improvements | $40,000 | – | $90,000 | As incurred | Before opening | Contractor/Third-party providers |
| Furniture, Fixtures and Equipment | $20,500 | – | $26,000 | As incurred | Before opening | Third-party providers |
| Signage | $6,000 | – | $10,000 | As incurred | Before opening | Third-party providers |
| Computer, Software and Point of Sales System | $5,000 | – | $12,000 | Lump Sum | Before opening | Third-party providers/Us |
| Initial Inventory | $2,000 | – | $5,000 | As incurred | Before opening | Third-party providers |
| Rent Deposits | $2,500 | – | $5,000 | As incurred | Before opening | Landlord |
| Utility Deposits | $300 | – | $500 | As incurred | Before opening | Utility providers |
| Insurance Deposits and Premiums | $2,000 | – | $6,000 | As incurred | Before opening | Insurance company |
| Pre-opening Travel Expense | $3,000 | – | $4,000 | As incurred | Before opening | Airline, hotel, restaurants |
| Grand Opening Advertising | $10,000 | – | $15,000 | As incurred | Before opening | Third parties |
| Professional Fees | $7,000 | – | $15,000 | As arranged | Before opening | Attorneys, accountants |
| Business Permits and Licenses | $100 | – | $250 | As incurred | Before opening | Licensing Authorities |
| Dues & Subscriptions | $0 | – | $500 | As incurred | Before opening | Approved Architect/ Engineer |
| Additional funds – 3 Months | $24,000 | – | $35,000 | As incurred | After opening | Various |
| TOTAL | $147,400 | – | $253,250 | |||
