(2)
See
Items 5, 6, and 11 for additional information about the demographic analysis.
(3)
This
estimate includes the travel and living expenses, including airfare, that you
will incur when you and 1 of your employees attend the Regional Developer
training programs described in Item 11 of this Disclosure Document. It does not
include any wages or salary for you or your employees during this training. It
also does not include any non-refundable daily attendance fees payable by you
to us for any additional attendees (i.e. in addition to your 2 required
attendees) that you request and we permit to attend the Regional Developer
training programs (currently approximately $150 per day for each additional
attendee). (See Item 11)
(4)
You
will need to employ an attorney to help you prepare a disclosure statement or
uniform franchise disclosure document that discloses all information concerning
the Assisting Hands� Business franchise opportunities in your Regional Territory that must be disclosed under federal and state law and regulations. If your
state law classifies Regional Developers as franchise brokers, then you will
also need to register as a franchise broker with the state. These estimates
include your estimated attorneys'' fees to prepare the required disclosures, any
regulatory fees that you may need to pay for state regulatory registration of
your disclosures, and registration fees to register as a franchise broker.
(5)
This
estimate includes your costs in preparing 3-months of advertising, marketing,
and promotional materials to market the Business franchise opportunities in
your Regional Territory. See Item 11 for additional information about your
advertising-related obligations.
(6)
This
item estimates 3-months'' initial start-up expenses (other than the items
identified separately in the table) for a Regional Developer franchise that are
not related to your Pilot Business. These expenses do not include payroll costs
or any draw or salary for you. These figures are estimates, and we cannot
guarantee that you will not have additional expenses starting your Regional
Developer franchise. Your actual costs for initial start-up expenses during
this 3-month period will depend on how closely you follow our methods and
procedures; your management skill, experience, and business acumen; local
economic conditions; the local market for Assisting Hands� franchises; the
prevailing wage rate; competition; and the sales level reached during the
initial 3-month period.
(7)
This
estimate includes security deposits required by the landlord and utility
companies, but not your telecommunications service.
(8)
This
estimate-includes 3-months'' rent for your Pilot Business at a rate of
approximately $0.90 per square foot to $2.50 per square foot. Your actual rent
payments may vary, depending upon your location and your market''s retail lease
rates. We estimate, but do not require, that your Pilot Business (like other
Businesses) will be 800 to 1,500 square feet in size. Assisting Hands�
Businesses typically are located in a professional office environment,
including office buildings, business parks, and other commercial real estate
locations.
If you purchase instead of
lease the premises for your Pilot Business, then the purchase price, down
payment, interest rates, and other financing terms will determine the amount of
your monthly mortgage payments.
(9)
This
estimate does not include any construction allowances that may be offered by
your landlord. Building and construction costs will vary depending upon the
condition of the premises for the Pilot Business, the size of the premises, and
local construction costs.
(10)
These
estimates assume you will purchase your Pilot Business''s signage. The type and
size of the signage you actually install will be based upon the zoning and
property use requirements and restrictions. There could be an occasion where
signage is not permitted because of zoning or use restrictions.
(11)
This
estimate includes workstations and chairs, shelving, and other items for your
Pilot Business.
(12)
This
estimate includes the cost of obtaining our required computer and POS system
hardware and software. It does not include any lease and maintenance fees for
any proprietary software that we may develop and require you to use. See Items
6 and 11 for additional information.
(13)
This
estimate includes the lifestyle equipment, disability aids, caregiving products
and apparel, and other items that you will use in providing services and will
sell to clients and the general public, and some printed items.
(14)
You
must obtain and maintain, at your own expense, the insurance coverage that we
periodically require, and satisfy other insurance-related obligations. You must
buy insurance only from carriers rated A-VIII or better by A.M. Best and
Company, Inc. (or similar criteria as we periodically specify). We may
periodically increase the amounts of coverage required under these insurance
policies and/or require different or additional insurance coverage to reflect
inflation, identification of new risks, changes in law or standards of
liability, higher damage awards, changing economic conditions, or other
relevant changes in circumstances. All insurance policies you purchase must
name us and any affiliate we designate as additional insureds, and provide for
30 days'' prior written notice to us of a policy''s material modification or
cancellation. If you fail to obtain or maintain the insurance we specify, we
may (but need not) obtain the insurance for you and the Business on your behalf
(see Item 6). The cost of your premiums will depend on the insurance carrier''s
charges, terms of payment, and your insurance and payment history.
(15)
This
estimate includes the travel and living expenses, including airfare, that you
will incur when you and 1 other person attend the initial training program for
your Pilot
Business (see Item U). It does not
include any wages or salary for you or your employees during this training.
(16)
This
estimate includes the initial marketing, advertising, and promotional
obligations for your Pilot Business, which includes the advertising expenses
for your franchise''s opening and first 3 months'' of operations. See Items 6 and
11 for additional information.
(17)
This
estimate includes the security deposits and service fees for your Pilot
Business''s telecommunications system, and telephone directory advertising fees.
See Item 11 for additional information about our advertising requirements.
(18)
This
estimate includes your initial start-up expenses (other than the items
identified separately in the table) for your Pilot Business''s first 3 months of
operation. These expenses include payroll costs during the Business''s
operation, but not any draw or salary for you. These figures are estimates, and
we cannot guarantee that you will not have additional expenses starting the
business. Your actual costs for initial start-up expenses during this 3-month
period will depend on how closely you follow our methods and procedures; your
management skill, experience, and business acumen; local economic conditions;
the local market for your products; the prevailing wage rate; your competition;
and the sales level you reach during the initial period. We relied on the prior
business experience of Gail Silverstein, our Director of Training, who operated
3 previous businesses offering similar services as Assisting Hands� Businesses,
as well as our current requirements for Businesses, to compile these estimates.
(See Items 1 and 2)
(19)
You
should review these figures with a business advisor before making any decision
to purchase the franchise.
