Investment & Costs
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 | |
| Low | High | ||||
| Initial Franchise Fee1 | $35,000 | $39,000 | Lump sum | At signing of Franchise Agreement | The Initial Franchise Fee is paid to us |
| Construction, Leasehold Improvements2 | $60,000 | $110,000 | As incurred | Before opening | Contractor/Third-party providers |
| Furniture, Fixtures and Equipment3 | $20,500 | $26,000 | As incurred | Before opening | Third-party providers |
| Signage4 | $6,000 | $10,000 | As incurred | Before opening | Third-party providers |
| Computer, Software and Point of Sales System5 | $5,500 | $12,500 | Lump Sum | Before opening | Third-party providers/Us |
| Initial Inventory6 | $2,000 | $5,000 | As incurred | Before opening | Third-party providers |
| Rent Deposits7 | $2,500 | $5,000 | As incurred | Before opening | Landlord |
| Utility Deposits8 | $300 | $500 | As incurred | Before opening | Utility providers |
| Insurance Deposits and Premiums9 | $2,000 | $6,000 | As incurred | Before opening | Insurance company |
| Pre-opening Travel Expense10 | $3,000 | $4,000 | As incurred | Before opening | Airline, hotel, restaurants |
| Grand Opening Advertising11 | $10,000 | $15,000 | As incurred | Before opening | Third parties |
| Professional Fees12 | $7,000 | $15,000 | As arranged | Before opening | Attorneys, accountants, |
| Business Permits and Licenses13 | $100 | $250 | As incurred | Before opening | Licensing Authorities |
| Dues & Subscriptions | $0 | $500 | As incurred | Before opening | Approved Architect/ Engineer |
| Additional funds – 3 Months14 | $24,000 | $35,000 | As incurred | After opening | Various |
| TOTAL15 | $177,900 | $283,750 |
