Item 7.����� ESTIMATED INITIAL INVESTMENT
Your Estimated Initial
Investment
|
Type
of Expenditure
|
Amount
|
Method of
Payment
|
When
Due
|
To Whom Payment Is to be Made
|
|
Franchise Fee {Note 1)
|
$39,950
|
Lump Sum
|
At Signing of Franchise
Agreement
|
Us
|
|
Territory Fee (Note 2)
|
$0 to $20,000
|
Lump Sum
|
At Signing of Franchise
Agreement
|
Us
|
|
Business Licenses
|
$0 to $500
|
As required by
local agency
|
Before
engaging in business
|
Local agency
|
|
Travel, Food & lodging while training.
|
$1,000 to $2,000
|
As Incurred
|
During Training
|
Hotels & Restaurants
|
|
Real Estate and Leasehold Improvements {Note 3)
|
(Note 3)
|
(Note 3)
|
(Note 3)
|
{Note 3)
|
|
Furniture and Equipment (Note 4)
|
$0 to $5,000
|
As Incurred
|
Before Opening
|
Suppliers
|
|
Advertising and Marketing (Note 5)
|
$6,000 for 3 months ($2,000 monthly minimum)
|
As Incurred
|
Monthly
|
Suppliers
|
|
Technical Staffing
|
$6,000 for 3 months ($2,000 monthly minimum)
|
As Incurred
|
Monthly
|
Suppliers
|
|
Start-up Supplies
|
$1,000 to $2,000
|
As Incurred
|
Before Opening
|
Suppliers
|
|
Additional Funds (Note 6)
|
$10,000 to $25,000 for 3 months
|
As Incurred
|
As Incurred
|
Various
Suppliers
Utilities
|
|
Total (Note 7)
|
$63,950 to $106,450
|
(Does not include real estate costs - see Note 3)
|
Notes:
(1)
The
Franchise Fee includes the Initial Training Program for you and another person.
An additional training fee will be charged for any additional person attending
the Initial Training Program. The Franchise Fee is partially refundable under
certain conditions, as discussed in Item 5.
(2)
The
Territory Fee is $10.00 for each Small Business Establishment (SBE) in excess
of 2000 SBEs.
(3)
We
do not require you to obtain outside office space from which to operate your CMIT Solutions Franchise. If you do lease or
purchase the premises for your CMIT Solutions office, we will not negotiate your lease or purchase.
The amount of rent will vary substantially, depending on the size, condition
and location of the premises. Leasehold improvements may be provided by the
Landlord; but if not, these will be at your expense. These costs will vary
greatly, depending on the condition of the premises and what improvements you
require.
(4)
You
must purchase or lease for use in your CMIT Solutions business a computer system that is capable of running
our business systems. See Item 11 and the detailed requirements described in
the Manuals. You also must purchase other items of office equipment as
described in the Manuals. The high estimate assumes that you will purchase these
items. The low estimate assumes that you already own these items. Both
estimates assume that you currently own a vehicle that is suitable for use in
operating the franchise.
(5)
You
must begin marketing for your Franchise and be prepared to provide IT Professional
Services within 30 days after successful completion of the initial training
program in Austin, Texas, unless we extend this time period in writing. Under
normal circumstances, you are expected to spend a minimum of $2,000 per month
on sales and marketing. Our estimate shows 3 months of the minimum expenditure.
(6)
This
estimates your expenses during the first 3 months of operation. These expenses
include professional fees, bank fees, telephone line installation fees,
cellular phone charges, 800-locator service, internet service provider, e-mail
marketing service, insurance premiums, payroll costs, miscellaneous expenses
and working capital. These figures are estimates, and you may have additional
expenses starting the business. Your costs will depend on factors such as: your
management skill, experience and business acumen; local economic conditions;
the local market for our services; the prevailing wage rate; competition; and
the sales level achieved during the initial period.
(7)
These
figures are estimates only. You should review these figures carefully with a
business advisor before making any decision to purchase the Franchise.
