COMPUTER TROUBLESHOOTERS - FDD UFOC ITEM 7 Detail

ITEM 7

YOUR ESTIMATED INITIAL INVESTMENT

Notes: Except as provided in ITEM 5 above, any fees paid to us are not refundable. Amounts paid to any third parties may be refundable, depending upon the contracts between them and you. The foregoing amounts do not include the initial investment to open a MTO franchise, which is included in the Unit Disclosure Document.

(1)                The Initial RD Fee ranges are likely to be between $44,500 to $69,500 (depending upon the population in the Development Area. The Initial RD Fee is non-refundable once paid. (See ITEM 5).

(2)                We provide training, but you must pay your own transportation and living expenses during the initial training program. (See ITEM 11).

(3)                Includes utility costs, business entity organization expenses, insurance and deposits and other expenses.

(4)                This estimates additional funds necessary for the first three months of your business operations, and does not include an owner or any employee salaries or personal or living expenses. These figures are estimates and we cannot guarantee that you will not incur additional expenses starting the RD Businesses. Your costs will depend on factors such as: your management skill, experience and business acumen; local economic conditions; the local market for Computer Troubleshooter franchises in your RD Development Area; the prevailing wage rate; competition from other sellers of franchise opportunities in your RD Development Area; the number of franchise sales reached during this initial period; and the amount of Royalties paid by Franchisees in your RD Development Area during this period. This ITEM includes a variety of expenses and working capital items during your start-up phase such as: legal and accounting fees; advertising, promotional expenses and materials; employee salaries; and other miscellaneous costs. However, this ITEM excludes your salary and also excludes any sales, use or similar taxes that may be assessed by your state or local authorities. Please check with your local and state governmental agencies for any taxes that may be assessed.

(5)                .We relied on the experience of certain of our officers to compile these estimates. You must bear any deviation or escalation in costs from the estimates that we have given. You should review these figures carefully with a business advisor before making any decision to purchase an RD Business. Presently, we do not offer financing for any part of your initial investment (see ITEM 10). The availability and terms of financing from independent third parties depends on factors such as the availability of financing generally, your credit worthiness, other security and collateral you may have and policies of lenders.

(6)                If you are a RD Franchisees in Illinois you will be required by Illinois law to include your financial statements in the Disclosure Document provided to prospective Franchisees that you solicit in your RD Development Area. The Audit Expenses is an estimate of the cost to have an opening balance sheet audit prepared by an accountant.