Your estimated initial investment for a single
operating location is listed in the table above. The estimated cost for
additional stores in a multi-store operation will be approximately the same for
each location, as shown in the table, with the exception of the initial
franchise fee and auto expense.
Notes:
1.
See
the Initial Franchise Fees discussion in Item 5 ("Initial Franchise
Fee"). Dent Doctor does not finance the initial franchise fee.
2.
You
must own, purchase or lease a vehicle that conforms to Dent Doctor''s standards,
specifications, trade dress and design. The only standards and specifications
we require are that the vehicle be in relatively good, presentable condition;
any number of vehicles types and sizes will be acceptable, from a small pick-up
truck, to an SUV or a cargo van. We prefer but do not require that the vehicle
be white in color. If you already own an acceptable vehicle, the graphics
package will cost you approximately $850, which the low end of the range cited
in the chart. Dent Doctor anticipates that most franchisees will finance or
lease a vehicle. If you lease a vehicle you should anticipate a down payment of
$ 1,000 to $2,000 and lease or finance payments that range from $315 to $400
per month on a sixty month term. Payments will vary, however, based on current
interest rates, the amount financed, the term of the loan or lease, and the
specific provisions of the loan or lease agreement, among other factors.
3.
These
are estimates of improvement to real estate only. You must operate your
Franchised Business in a service Center either alone or in conjunction with one
or more mobile vans. You will need to rent or lease space for the Center and
typically will incur costs for remodeling an existing auto repair facility.
Such costs will vary significantly depending on the condition of the location
and the nature of the renovations required. Generally, a Mid-range Store Front Center will need to be approximately 1500 square feet, have shop space for 2
to 4 vehicles and a customer waiting office area. The locations generally used
are existing aftermarket automotive retail service spaces. Lease rentals may
vary substantially, depending on the size of the premises, geographic area and
market conditions, and we cannot offer an estimate of your particular real
estate costs.
4.
Dent
Doctor requires that you display the DENT DOCTOR� trademark in color at least
26 inches high on the exterior of the Center and at least 13 inches high on the
interior of the shop space and the customer waiting area space will conform to
the specifications as set forth in the operations manual.
5.
These
figures do not include an estimate of round trip travel for your training. Dent
Doctor provides instructors and instructional materials for the 4 to 5 week
training, but you will need to pay for transportation, lodging, and food for
yourself and your representative. The cost will vary, depending on the distance
that you must travel and the type of accommodations and dining facilities you
choose. These estimates include only your out-of-pocket costs associated with
the training, and do not include any fees or expenses for training any other
personnel. They do not include any salary or wages that you may pay to yourself
or your employee.
6.
You
are required to purchase the Dent Doctor custom tool kit which is supplied
solely by Dent Doctor.
7.
You
will be required to purchase standard tools, supplies and miscellaneous
equipment to be used in the operation of the franchised business.
8.
We
recommend that you purchase a battery charger, paint touch-up kit, windshield
repair kit, dent glue-puller kit, vacuum cleaner and other items as specified
in the operations manual. The cost of these items may vary significantly
depending on the suppliers used and equipment purchased.
9.
Your
obligation to procure insurance is discussed in detail in Item 8 under the
heading "Insurance." Your cost of procuring insurance will vary
according to the risks associated with the Dent Doctor business. The cost of
Workers'' Compensation Insurance will vary according to the number of
principals, employees or other representatives working in the Franchised Business
and the requirements of state law. We estimate that the annual cost of
insurance will be $3,000 to $5,000; the initial premium payment is estimated at
$500 to $800. The estimate given in the chart is for the annual insurance
premium for the insurance required by the Franchise Agreement. These figures
may change according to a variety of factors, and may include a higher initial
premium payment than estimated.
10.
These
are estimates, based upon experience, for towns or franchise areas with 200,000
population having approximately 1500 square feet.
11.
You
will need to purchase standard supplies, miscellaneous office supplies, forms,
business cards, other promotional items and uniforms as specified in the
operations manual.
12.
These
estimates will vary depending on the cost of advertising in your local market
area.
13.
You
will incur other prepaid expenses for, among other things activation of local
and mobile telephone service, along with local business permits and licenses.
14.
Dent
Doctor recommends that you have adequate working capital. This range of
estimates and costs is based upon operations for the first three months. It
covers miscellaneous costs and expenses including shop administrative
compensation. The estimates are for two different levels of business style.
These figures will vary significantly with your individual Center location and
style of business.
15.
Dent
Doctor will assist you with establishing your franchised business. As an
option, a Dent Doctor technician will assist you at your location for up to the
first 30 days of your operation, and a Dent Doctor sales representative will
assist you at your location for 4 days in establishing your Dent Doctor
business. Scheduling will vary based upon the availability of the qualified
Dent Doctor technician and sales representative.
16.
Dent
Doctor relied on its 22 years of experience in the dent removal business to
prepare these estimates. These figures are estimates only, and Dent Doctor
cannot assure you that you will not have additional expenses starting the
Franchised Business. You should review these figures carefully with a business
advisor before making any decision to purchase the franchise. There is no
charge for Dent Doctor consultations to assist you in the selection of a
location for your Center.
