|
Type of Expenditure
|
estimated
Amount or Estimated Low-High Range1
|
Method of Payment
|
When Due
|
To Whom
Payment Is To Be Made
|
|
Additional Funds"
|
SlS.OOOMJflg-$75,000
|
As
Arranged
|
As Incurred
|
Employ�es Misc. & Others
|
|
TOTAL
|
$ H 6,57512^262-S2P8,7003fl4�fl8.
|
|
|
|
B.������ CONVERSION CENTER
YOUR INITIAL INVESTMENT
|
Type of Expenditure
|
Estimated
amount or Estimated Low-High Range1
|
Method of Payment
|
When
Due
|
To Whom
Payment Is To Be Made
|
|
Initial Franchise Fee2
|
$40�00�4J�tt|M
|
As Arranged
|
See Note 2
|
Us
|
|
(Initial Franchise Fee for
Existing Franchisees)3
|
$5,000
|
Lump Sum
|
See Note 2
|
Us
|
|
Training Expenses9
|
$2,800 - $4,500
|
As Arranged
|
As Incurred
|
Transportation Lines, Hotels and Other
|
|
Rent (3 months)4
|
$8,100-$13,500
|
Lump Sum
|
As Specified in Lease
|
Landlord
|
|
Rent Deposit
|
$5,400 - $9,500
|
Lump Sum
|
As Specified in Lease
|
Landlord
|
|
Utility Deposits
|
$300 - $500
|
As Arranged
|
As Incurred
|
Utilities
|
|
Equipment7
|
$6^006+502-$604*0065.264
|
As Arranged
|
As Incurred -Generally Financed
|
Outside Suppliers
|
|
Leasehold Improvements, Construction, Remodeling,
decorating5
|
$9,000-$17,500
|
As Arranged
|
As Incurred and As Needed
|
Outside Suppliers
|
|
Grand Opening Marketing and Promotion10
|
$1,750-$3,000
|
Lump Sum
|
As Incurred
|
Company
|
|
Exterior Signage
|
$1,000-$7,500
|
As Arranged
|
As Incurred
|
Vendors
|
|
Insurance8
|
$1,200-$2,000
|
As Arranged
|
As Incurred and as Needed
|
Outside Suppliers
|
|
Business Licenses and Permits
|
$100 - $1,000
|
As Arranged
|
As Incurred
|
Government Agencies
|
|
Type
of Expenditure
|
Estimated amount or Estimated
Low-High Range1
|
Method
of Payment
|
When
Due
|
To Whom Payment is To Be Made
|
|
|
Down Payment On Business
|
S35,QQ05jLflflfl -
$75,000
|
Lump Sum
|
As Incurred
|
Seller
|
|
|
Additional Funds
|
$44^0625.000 -$50,000
|
As Arranged
|
As Incurred
|
Outside Suppliers
|
|
|
TOTAL12
|
$125,650156052-
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTES
1.
We
make no representation that your costs will come within the ranges estimated
and cannot guarantee that you will not incur additional expenses starting a
Signs Now"5 Center. Your actual costs will depend on factors
such as: geography, the availability of sites; the Signs Now� Center size and
location; construction costs; your discretionary expenditures; the availability
of leasing or financing arrangements; your credit rating; and other factors.
2.
The
initial franchise fee is more fully described in Item 5 of this Disclosure
Document. A $5,000 deposit is payable upon submission of your application. The
balance of the franchise fee is due upon execution of the Franchise Agreement.
Under certain circumstances, we may give you a partial refund of the initial
franchise fee. (See Item 5)
3.
The
initial franchise fee for existing franchisees who purchase additional
franchises is $5,000.
4.
Monthly
rental payments will vary substantially depending on the size and location of
the proposed site. The typical Signs Now� Center will be located in a strip
shopping center or storefront location having high visibility and easy access
for customers. Centers typically are approximately 1,800 to 2,500 square feet.
Rent expense for a facility in which to operate the Signs Now� Center will vary
depending on location, age and condition of the structure, lease arrangements
and similar factors. Rent is estimated to be between $32,400-554,000 per year
depending on various factors.
5.
The
cost of construction and leasehold improvements depends upon the size and
condition of the premises, the local cost of contract work and location of the
premises. The landlord may provide the leasehold improvements for the
franchisee. All centers will utilize the distinctive Signs Now� marks and name.
Each center must be designed to comply with a detailed floor arrangement for
equipment, furnishings and fixtures to maximize the efficiency of operations.
The floor layout integrates (i) customer service for signs and other products,
(ii) invoicing, (iii) storage and retrieval, (iv) banner and sign production,
and (v) digital imaging and lamination.
6.
The
estimate provided includes the cost of our current image, including work
tables, counters, computer tables, chairs, interior fixtures and various
storage containers.
7.
The
estimate for computer and production equipment includes a variety of systems
that graphic design, cut vinyl cutting sign-making, full color ink jet
printing, and lamination. Costs vary based on size, capacity, and speed of
equipment. Qualified individuals may be able to lease such equipment from
vendors or third parties.
8.
The
low estimate includes a quarterly premium; high estimate includes the annual
cost of insurance. You must, at your own expense, keep in force comprehensive
general liability insurance, for protection against the claims of customers or
others, for a minimum of $1 million per occurrence, and in the aggregate, a
minimum of $100,000 for business property damage, insuring you, us and our
agents and representatives against any liability because of your ownership,
maintenance or operation of your Center, or because of our relationship to you.
You also must maintain worker''s compensation insurance for your employees. You must
provide us with a certificate of insurance naming us as an additional insured
and provide us with 30 days written notice of material changes to or
cancellation of the policy.
9.
You
will need to arrange transportation and pay the expenses of meals and lodging
for any persons attending the training program. The amount expended will depend
upon the distance those persons must travel and the type of accommodations
chosen. The estimate contemplates attendance of two (2) people for three (3)
weeks in Sarasota, Florida.
10.
We
have developed a package of materials to promote your grand opening that you
are required to purchase from an outside vendor. Additionally, we strongly
encourage you to spend a significant amount on other promotional efforts
associated with the opening or re-opening of franchised centers. This is a
suggested amount, which includes the minimum requirement. However, we do not
warrant or guarantee that this amount will be sufficient.
11.
The
amount of additional funds for working capital is projected as sufficient to
cover operating expenses, including employees'' salaries for 6 months. The
amount does not cover any salary or other compensation for you. This range is
based on our experience and the experience of our officers in dealing with new
Signs Now� franchised centers. However, we do not warrant or guarantee that
this amount will be sufficient. You should review these figures carefully with
a business advisor before making a decision to purchase the franchise.
12.
We
have assumed the center will offer full color digital printing on vinyl. If
you choose to add inkjet technology, your oooto will bo
highor. We have-ake assumed that all other items (including necessary
production equipment) are already in place. Your actual investment for
a Conversion
Center may
vary depending
on the size and final purchase price of the independent business
being acquired. Interest on the purchase of an independent
business is not included in the total initial investment.
We do not offer direct or
indirect financing to franchisees. Any fees paid to us are not refundable; fees
paid to any third party may be refundable, depending upon the contracts, if
any, between a third party and you.
These fees are estimates only.
We cannot guarantee that you will not have additional expenses starting the
business. Your costs will vary and depend on these and other factors: how much
you follow our methods and procedures; your management skill, experience, and
business acumen; local economic conditions; the local market for products
offered by Signs Now� Centers; the prevailing wage rate; real estate costs;
competition; and the sales level reached during the initial period.
