ITEM 7. ^ESTIMATED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL
INVESTMENT
Al������������� Item shows estimated expenses through
the third month of operation. None is refundable, except
for
insurance, which may be partially refundable, and deposits*
-5�2.������� This table is applicable to a
first Restaurant only. If you enter into a prefranchise agreement, your
prefranchise fee is fully
applicable to the initial franchise fee. If you are purchasing franchises under
an area development agreement, you must pay, when you sign the area development
agreement, a development fee of $25,000 for the first Restaurant and $10,000
for each additional franchise to be developed under the Development Schedule.
The fees paid in advance will be credited toward the initial franchise fee for
each Restaurant developed under the ^agreement until all fees have been
credited*
3^���������������� Figures are based on the
assumption that premises will be rented and that lessor will require an
initial payment of one month''s
rent and a security deposit of one month''s rent. The premises will probably be
located in in-line or end caps in shopping centers. The size will probably
average between 1,500 and 1,700 square feet*
fL������������ This category
includes sales tax deposits or bonds, construction permit, sewer hookup charges,
and
utility deposits.A
5.������������ Figures are based on the
assumption that landlord will provide a "Vanilla Shell"
before you begin
improvements to the
property. Tenant allowances, if any, are n o t, i pel u d ed[B nd jriay red uce the cost of
tenant improvements.
������������������ This
category includes such items as alarm system, music system,
telephone system, signs, food
preparation
equipment, cash registers and, dinincj furniture.
7\������������ We include
pre-opening wages for your employees in your training costs.*
8.����������������� This figure includes attorney
review and negotiation of the lease for the franchised Restaurant*
9\.����������� This category includes opening
cash and other miscellaneous expenses incurred before opening
and during the first three
months of operations. We relied on our experience in developing these figures.
You should review them carefully in light of local conditions and the current
economic outlook, consulting a business advisor if necessary.*
