Investments
Amount
Method of
Low-High
Payment
$5,000 to
In full
$75,000
When Due
Upon signing
Us
franchise
agreement
$1,000 to $5,000
As incurred
Airlines, hotels,
training
restaurants etc.
30 days before
Advertising
opening
supplier
Initial Opening
$5,000 to
Advertising
$10,000
Vehicle (1)
$0 To $ 25,000
Lump sum or
Upon purchased
Vehicle Seller,
installments as
or as negotiated
Finance
month, approxi-
negotiated plus
Company,
general traveling if do
mately) lease to
interest.
Leasing Agency;
interest payment
Lump sum or
Upon purchased
Vehicle Seller,
forklift (1)
subcontractor's
installments as
or as negotiated
Finance
negotiated plus
Company,
interest.
Leasing Agency,
included in cus-
applicable
tomers' billing.)
Subcontractor
$6,000 to $15,000
refurbished or
new 4-ton forklift
($0 to $600 per
month if leased).
Investments
Amount
Low-High
$1,000 to $4,000
per month rent
Leasehold
Improvements, i.e.,
showrooms, building
$2,500 to
$10,000
Business Licenses/
Permits
Method of
Payment
When Due
Per Month
Monthly
Before opening
Landlord
Landlord
Lump sum
Upon completion
Amount only if
fabricated
$0 to $1,000
In full
Before opening
Government
agencies (may be
more than one
city at time of
contracting)
Equipment, Furniture,
and Fixtures (desks,
chairs, small copier and
fax machine, etc.)
$2,000 to
$10,000
Lump sum or as
negotiated
Before opening
Designated
supplier
Complete Signage
(Interior and Exterior)
$2,000 to $5,000
As required by
vendor
As required by
vendor
Vendor
Tools
$1,000 to $4,000
Lump sum or as
negotiated .
Before opening
b
Designated
supplier
$10,000 to
"d
As negotiate
Before opening
Us or designated
$25,000
Contractor's License
Fee
$0 to $6,000
Lump sum
Before opening
Government
agency
Public Liability
Insurance and
Worker's
Compensation;
Liability-, Fire Extended
Coverage, Errors and
Omissions Insurance
$1,000 to $3,000
Monthly
Upon opening
Insurance agent
Lump sum
supplier
Investments
Amount
Method of
When Due
To Whom Pay-
Miscellaneous Costs
(organizational
expenses, etc.)
Working Capital (3)
(additional funds for
expenses, including gas,
payroll, petty cash,
construction manager's
salary, and car
allowance; fuel
expenses; additional
tools; pagers, utilities;
truck lease or payment;
telephone, equipment
mainte-nance; rent for
first 3 months,
advertising for months
2 and 3; recruiting for
first 3 months and
miscellaneous costs for
first 3 months, in
addition to above
expenses, paid prior to
opening)
Estimated Total Initial
Investment and Initial
Advertising
Requirements
Low-High
$2,000 to $5,000
Payment
As needed
Upon opening
ment Is Made
Various suppliers
.1
4
$20,000 to
$40,000
As required
As required
Suppliers, etc.
$74,500 to
$251,000
No allowance has been made for inflation, debt service, or interest payment on borrowed money, but you should consider this, particularly
if part or all of your startup costs are to be financed.
(1) You can lease or finance your car or light truck for sales and general travel if you presently do not have a suitable car/light truck at $300 to
$600 per month and you can lease or finance a working truck generally selling new from $20,000 to $30,000 with 10% payment approximately
$500 with payments over 36 to 60 months, thus incurring a substantial saving in initial cash outlay However, you can pass the cost of the truck and
the labor to the customer if you retain the services of a subcontractor and his tools and crew, since the cost of using same is included in the
particular customer's estimate and contract sheet. If you do not retain a subcontractor's crew and its vehicle, the estimated cost of 15% to 25% is
added to the customer's estimate and passed on.
(2) You can secure acceptable office/showroom spaces for between $0.30 and $1.00 per sq. ft. per month in most areas. You should confirm this in
your local area.
(3) Working capital does not include any draw or compensation for the franchise owner or employee wages or payroll except for the field operations
manager's salary. We have not calculated labor into the above costs as it forms a cost of sale as part of your gross profit on any job. No revenue = no
labor.