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Turn Key or Start-up Cost |
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Land The total cost for the purchase of land where the business will be located. This includes all corresponding tax, broker fees, etc. Building This is the total cost of the construction of the building for our business. Security Deposits These deposits were required to secure an account with Entergy for electricity and Bell South for phone service. Bell South - $300 Entergy - $200 Equipment Purchases The primary purpose for purchasing an existing business is to provide a base of operation from which to launch web-based sale of textbooks to local colleges and universities. The web operation requires purchasing computer equipment. Thus, most equipment purchases is for computers. Other items include a van, tables, shelves, and a dolly. The van is needed for delivery and to pickup emergency inventory in the event sales exceed projections. The table and shelves are needed to assemble and temporarily store web orders. A list of the equipment purchased follows: Non-Computer Equipment Computer Equipment Van 14,000 2 Servers @ 3800 7,600 Tables (3) 300 2 RAD @ 1200 2,400 Shelves (5) 700 4 UPS 2,800 Unanticipated Need 500 Cabling & Connectors for LAN 1,050 Upgrades for Existing Equipment 1,150 High Speed Laser Printer 3,500 2 Office Laser Printers 1,500 1 Color Inkjet Printer 700 1 Flatbed Image Scanner 500 1 Digital Camera 300 Subtotal 15,500 Subtotal 24,500 Total Equipment 40,000 Software This is for accounting and marketing proprietary software designed by XXX franchisor. Opening Supplies This cost covers essential opening supplies such as stationary, inventory, and other essentials to begin operation of the business. Insurance This is the first payment required to open a comprehensive general-liability insurance coverage protecting our business against natural disasters and legal liabilities. Licenses This is the cost of obtaining a parish and state occupational license and a zoning permit by the city. Parish Occupational - $50 State Occupational - $75 Zoning Permit - $75 Training Expenses This includes the cost of initial training - training fee, travel, lodging, and meals. Training Fee - 3,500 Total Travel Expenses - $1500 Grand Opening Advertising This is the cost of advertising to promote the opening of the business. Beginning Operating Cash This is the amount of cash that the franchisor has determined necessary to begin operation of the business.
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