Turn Key or Start-up Cost

Cost to Start XXX 

Initial Franchise Fee

25,000

Land

50,000

Building 

100,000

Security Deposits

500

New Equipment

40,000

Software

2,000

Opening Supplies

25,000

Insurance

2,000

Licenses

200

Training Expenses

5,000

Grand Opening Advertising

15,000

Beg. Operating Cash

50,000

Total cost to start business

319,700

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.