Example Template |
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LSU's Pete Maravich
Assembly Center
| One of the most important parts of the franchising feasibility study is the development and presentation of the total cost necessary to open a franchised unit. These start-up (or turn-key) costs include all expenses required so that all elements of the business are in place and the operation is ready for the first customer who comes in the door. These cost should be itemized, providing a complete picture to the franchisee
of the commitment
required to start a franchised unit. This list will assist the franchisor in planning the start-up of future franchised units and can also be used to compare to competitors' cost.
It is important to remember that for balance sheets and income
statement purposes the start-up cost should be amortized over a period
of time normally ranging from 1 to 3 years. |
Examples: real property cost, building, advertising, utility hook-ups, internal fixtures,
product inventory,
commodities and supplies, and initial salary and wages
1. Give a very detailed list of what you need to purchase and the price.
2. Give an explanation of each item and justification.
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