Expense Budget for Franchising
Item |
Cost |
|---|---|
Franchise Agreement and Franchise Offering Circular The above items are included in our Development Agreement and the amount can be financed over a period of time, for instance a $4,500 initial payment and monthly payments of $3,000 to pay the balance. |
$28,500 |
Franchise Marketing Brochure Most companies don't develop "formal" brochures until a few franchises are sold. However, even though the wording and layout are developed by us for the initial fee, the production and printing cost can be $3,500 - $5,000 when done. |
5,000 |
Training and Operating Manual |
10,000 |
State Registration Fees There are 35 nonregistration states and some franchisors never pay any fees for registration. If in California, for instance, the fee is $675. At any rate these fees are paid over a long period of time in most cases. This includes our fees. |
14,425 |
Initial Advertising (Newspaper - 2 x per week - 3 months) Local newspaper ads in a selected area will produce leads for the sale of a franchise at that location. This method is usually sufficient until a base of two or three franchises are in place. |
3,000 |
Show Booth Development A portable "show display" system can be devised for this amount and would be re-usable at subsequent shows. This expense need not be incurred until after several initial sales. |
5,000 |
Attendance at Show (Per Show) Each show space (usually 10 x 10) will require a fee of $1,500 to $2,000 |
2,000 |
Accounting Fees Registration states require filing of audited financials, though many accept "reviewed" statements. Fees vary greatly among accountants, and $2,000 to $5,000 is a probable range. |
3,500 |
Attorney Fees |
3,000 |
TOTAL BUDGET |
$74,425 |