(1)
This is designed as a
home-based business. No retail or commercial location will be required, nor
will any significant improvement to your home be required. The expenses listed
in this ITEM 7
do not
include acquisition or improvement of any real estate.
(2)
See
ITEM 5 for the conditions under which the Initial Franchise Fee is partly
refundable. We do not offer refunds of any other expenses.
(3)
See ITEM 5 for the conditions for
receiving a refund of the Training and Territory Fee. We do not offer refunds
of any other expenses. We do not finance the Training and Territory Fee. If you
are a partnership and your partner comes to a separate initial training class
or you request that we train more than two people at the initial training class
we will charge an additional training fee of $5,000.
(4)
You
must pay for accommodations, meals, wages, and other transportation costs for
yourself and one additional person attending training. If you bring additional
employees to training, you must also pay for their travel, meals, wages and
accommodations as well. The amount you expend will vary but you should
anticipate spending approximately three weeks in training.
(5)
The
equipment necessary for the operation of a franchise includes uniforms, a call
center or interactive voice recognition service, answering service,
communication device with verbal and text capability, office phone, copier,
computer, access to our proprietary Intranet, general business supplies, fax
machine/scanner, and other general office equipment. You may purchase or lease
approved brands and models from approved or recommended suppliers if we have
designated such suppliers in the Operating Manual. The cost of the equipment will
depend on financing terms available, brands purchased, and other factors.
(6)
The
Start-up Advertising and Promotions Package includes a pre-opening, opening,
and grand opening advertising and promotional campaign tailored by us and our
designated public relations firm for your Territory. We will partner with you
to cover half of the total expense of the Start-up Advertising and Promotions
Package, which has a total value of $5,000. This is a one-time expenditure. If you are purchasing
an existing Bark Busters Business, this Start-up Advertising and Promotions
Package is optional. The maximum amount we will contribute to the Start-up
Advertising and Promotions Package in a resale situation is a matching $ 1,500.
(7)
This
category includes magnets, car signage, promotional packages, and other
promotional strategies as more specifically defined in the Operating Manual.
Mandatory public relations
costs from just before you open your Bark Busters Business through the end of
the third month of operation, including the time you spend in our initial
training program. The value of the services provided by our designated public
relations firm is estimated to be $1,500, but the balance of this cost is
underwritten by us. This is a one-time expenditure, although you may choose to
utilize the services of our designated public relations firm, which will be at
your cost and paid in the time frame you and the public relations firm agree
upon. If you purchase an existing Bark Busters Business, this expenditure is
optional.
Before you open your Bark
Busters Business, you must obtain the insurance coverage specified below.
Insurance coverage must be maintained during the term of the Franchise
Agreement and must be obtained from a responsible carrier or carriers rated
"A-" or better by A. M. Best & Company, Inc., be approved by us,
and include the following:
General Liability - General
liability covers you for third party property damage, and bodily injury.
Example: After arriving at a client''s home, you
accidentally damage a piece of the customer''s personal property.
Limits of coverage: $1,000,000
each occurrence $1,000,000 personal and advertising injury $2,000,000 aggregate
$2,000,000 products completed
operations aggregate $300,000 damage to premises rented to you $5,000 medical
expenses
Professional Liability -
Professional liability covers you for damages you create that do not result in
property damage or bodily injury.
Example: After finishing
training a client''s dog, the dog continues to act disobediently and the dog''s
owner suffers economic harm as a result.
Limits of coverage; 1,000,000 each occurrence
Business
Property
Business personal property
$5,000
Deductible $500
Property of others������������������������������� Included in BPP
Property off
premise $25,000 Property in transit $25,000 Business income with
Extra expense��������������������������������������� ALS-12
months
Commercial Auto Coverage
As a Bark Buster''s Franchise
owner it is important to have your vehicle titled in your business name, and to
have a commercial auto policy in force to properly protect you.
Physical damage
coverage up to the value of your owned vehicle.
$1,000,000 Auto liability
$1,000,000
Uninsured motorists/ UIM CSL
$5,000
Medical payment
$1,000,000 Hired &
Non-owned liability
We reserve the right to
modify, change, or increase your insurance requirements by updating such
requirements in the Operating Manual.
(10)
You
must purchase all Bark Busters Products and Bark Busters Supplies from us or
our designated supplier. You will receive an initial start-up kit of Bark
Busters Products and Bark Busters Supplies during the time you attend our
initial training program. However, you may need to purchase additional Bark
Busters Products or Bark Busters Supplies during your first three months of
operation. (See ITEM 8). The Bark Busters Products and Bark Busters
Supplies included in your initial start-up kit is set out in ITEM 8. If you are
purchasing an existing Bark Busters Business, this expenditure is optional
provided that you have purchased a sufficient supply of Bark Busters Products
and Bark Busters Supplies from the previous Bark Busters Franchise owner.
(11)
A
vehicle may be leased, depending on your credit and the auto dealer, with an
approximate $500 deposit and monthly payments negotiated with the auto dealer.
If it is not leased, the approximate value to purchase a new vehicle is
estimated at $17,000. Alternatively, you may use your existing vehicle,
provided that any vehicle used meets our specifications with respect to logos
and signage advertising. We reserve the right to modify our vehicle signage
requirements under certain circumstances in our sole discretion.
(12)
ITEM
7 estimates your start-up expenses for an initial thrcc-monlh period, excluding any revenue
generated from the operation of your Bark Busters Business. These expenses do not include
payroll costs or your living expenses. Most new franchisees do not hire employees during the
initial period. These figures are estimates and we cannot guarantee that you
will not have additional expenses starting your business. Your costs will
depend on: how much you follow our methods and procedures; your management
skill, experience and business acumen; local economic conditions; the local market
for our products and/or services; the prevailing wage rate; competition; and
the sales level reached during the initial period.
(13)
The
high/low total amounts will vary and may exceed our estimates based on the
Territory you purchase.
We relied on over five years
of experience of certain officers of the company in operating a dog training
business in the United States to compile these estimates. You should review
these figures carefully with a business advisor before making any decision to
purchase the franchise.
Except as described in ITEM
10, neither Dingo nor any of its affiliates provide or assist with financing
arrangements for you. If you obtain financing from others to pay for some of
the expenditures necessary to establish and operate the franchise, the cost of
financing will depend on many factors, including as creditworthiness,
collateral, lending policies, financial condition of the lender, regulatory
environment, and other factors.
