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 | $29,000 | – | $29,000 | Check or wire transfer | Upon signing the franchise agreement | Us |
| Real Estate / Rent (see Note 2) | $2,500 | – | $5,000 | As arranged | Upon signing lease | Landlord |
| Utilities | $300 | – | $500 | As arranged | Upon ordering service. | Utility providers |
| Leasehold Improvements | $20,000 | – | $70,000 | As arranged | As incurred or when billed | Contractors |
| Market Introduction Program / Grand Opening | $2,000 | – | $12,000 | As arranged | As incurred or when billed | Vendors and suppliers |
| Furniture, Fixtures, and Equipment | $20,000 | – | $25,000 | As arranged | As incurred | Vendors and suppliers |
| Computer Systems | $3,500 | – | $4,000 | As arranged | As incurred | Vendors and suppliers |
| Insurance | $2,000 | – | $6,000 | As arranged | Upon ordering | Insurance company |
| Signage | $3,000 | – | $6,000 | As arranged | Upon ordering | Vendor |
| Office Expenses | $500 | – | $1,000 | As arranged | As incurred | Vendors |
| Inventory | $0 | – | $1,000 | As arranged | Upon ordering | Vendors |
| Licenses and Permits | $100 | – | $250 | As arranged | Upon application | Government |
| Dues and Subscriptions | $0 | – | $500 | As arranged | As incurred | Vendors, trade organizations |
| Professional Fees (lawyer, accountant, etc.) | $500 | – | $1,500 | As arranged | As incurred or when billed | Professional service firms |
| Travel, lodging and meals for initial training | $3,000 | – | $4,000 | As arranged | As incurred | Airlines, hotels, and restaurants |
| Miscellaneous Preopening Expenses | $4,500 | – | $6,000 | Varies | Varies | Varies |
| Additional funds (for first 3 months) (see Note 3) | $20,000 | – | $20,000 | Varies | Varies | Employees, suppliers, utilities |
| Total | $110,900 | – | $191,750 | |||