1)
In our sole discretion,
we may provide financing for the initial franchise fee. If we provide financing
we will require you to pay 25% of the fee in cash upon signing the Franchise
Agreement. The balance must be paid within five years. You will be charged interest
on the balance at a rate of prime plus 2% floating. There is no penalty for
early repayment. See Item 10 and Exhibit F.
2)
Costs
can vary greatly depending upon supply conditions, vehicles chosen, fleet size,
and other faclors. Vehicles may be purchased, financed or leased.
3)
You
will be responsible for travel, food and other ipersonal expenses while
attending initial training. We do not compensate persons in training.
4)
You
may need to purchase office furniture, office fixtures, computer hardware, and
office decorations. All items purchased must conform to our requirements as
established in the System Manual. If you have a location in an airport
terminal, the governing airport authority may also impose certain additional
requirements.
5)
Your
Franchise Agreement requires you to expend not less than 2% of your monthly
gross receipts on local advertising and promotional programs that we approve in
advance. You must spend at least $25,000 in the first six months of your
Franchise Agreement. Your advertising costs will include items such as
newspaper advertisements, direct mail, and yellow page advertisements used to
generate sales. You also will be required to contribute 3% of your monthly
gross receipts to our national marketing program.
6)
You
will incur various miscellaneous costs to open your Business. These costs
include, but are not limited to your business license(s), security deposits,
utilities, and costs to form a business entity to conduct the Business. If you
conduct operations at a commercial airport and you are the lessee on the lease
or concession agreement, the governing authorities ordinarily require the posting
of a bond or other comparable security.
7)
This
is an estimate of the working capital you will need for your first six months
of operation. Six months is an arbitrary period of time. There is no assurance
that your Business will be successful or achieve any particular results of
operations in that or any other time period. These expenses include payroll
costs. These figures are estimates, and Advantage Licensing LLC cannot
guarantee that you will not have additional expenses starting your Business.
Your costs will depend on factors such as: your management skills, experience
and business acumen; local economic conditions; the local market for our
product; the prevailing wage rate; competition; and the sales level reached
during the initial period.
8)
Costs
of licenses and permits include, but are not limited to, building permits,
certificates of occupancy, etc. Costs will vary greatly from state to state and
county to county.
9)
Costs
of signage will vary greatly depending on your Business''s location and size.
10)
Real
estate costs vary significantly depending on geographic location including
whether or not the location is at or close to an airport, the size of the
property, environmental compliance, zoning and other factors. Sites are
typically leased. The size of the location necessary to operate your Business
will vary based on the size of the market served and the number of rental cars
in your inventory. Airport locations may be significantly more expensive as you
may be required to lease a car lot or make more extensive improvements as well
as pay concession and other fees to the airport.
11)
You
must complete reasonable and mutually agreeable upgrading and refurbishment of
your Business as we reasonably require. Advantage estimates that your cost to
remodel could range from $5,000 to $20,000 for a typical Advantage Business,
but costs may vary. If you relocate your Business, when you remodel, your costs
could be significantly higher.
12)
Costs
include, but are not limited to, professional fees and travel costs.� Costs
vary greatly by
region.
13)
The
type and amount of leasehold improvements will vary depending on the condition
of your site. Examples of leasehold improvements include, but are not limited
to, wallpaper, flooring, paint and remodeling. For airport locations, leasehold
improvements can vary based on the volume of the rental car business, the
nature of the concession from the airport, the size of the location and other
requirements that may be imposed by the airport authority.
14)
All
cars must be clean when rented. This may require you to wash the exterior or
each rental car after each use, and it will require you to clean the interior
of each rental car after each use. You may use either a third-party facility or
you may purchase a car washing system. The nature of your Business''s location
may require that you install a car washing system. Also, if you have an airport
location, the airport authority may require you to install a car washing
system. Typical cost of a car washing system ranges from $ 100,000 to $200,000.
15)
You
are not required by this franchise agreement to install a vehicle refueling
system; you may use a third-party station to refuel. The nature of your
Business''s location, however, may require that you install a vehicle refueling
system. Also, if you have an airport location, the airport authority may
require you to install a vehicle refueling system. If you choose to install a
vehicle refueling system, we estimate your cost to be $25,000 to $100,000.
16)
You
will be required to purchase car rental forms and other supplies from an
approved vendor.
17)
Insurance
coverage must include commercial general liability insurance including motor
vehicle liability of $3,000,000 combined single limit coverage, and cover for
all other occurrences against claims of any person, employee, customer, agent
or otherwise. You are required to list Advantage as an additional insured on
your policies. You must maintain the minimum level of insurance required by
your Franchise Agreement.
All
payments made to Advantage, its associates and affiliates are non-refundable.
Payments made to Third Parties may be refundable based on your individual contract
or business dealings with those Third Parties.
