7. estimated initial investment your estmated initial
investment
ERA Regional Disclosure Document - 03.2008
1.
Item
shows estimated expenses through the third month of operation. We assume that
you will operate from a home office, at least initially, and so we have made no
allowance for rent or build out. If, for some reason, you choose not to operate
out of your home, you may locate in any space that will accommodate your desk,
telephone and computer equipment and where you have access to a
fax/copier/printer. None of these expenses is refundable, except for insurance,
which may be partially refundable, and deposits.
2.
This
category includes such items as a computer system that is capable of running
our CRM software and accessing the internet by high-speed modem, office
furniture, telephone system and fax/copier/printer.
3.
This
figure includes attorney review of the License Agreement.
4.
We do not charge a fee for the initial
training program at which we train you or your Designated Principal (who may
also be your first Professional Services Employee) at the inception of the
license term.
You must employ at least one
Professional Services Employee (as defined in the License Agreement) and you
may employ up to three Professional Services Employees. We will not charge a
fee for the initial training program for you or your Designated Principal at
the inception of the license term. However, if you later replace your
Designated Principal, transfer your license or ask us to train an additional
Professional Services Employee who will perform professional services for your
clients, we will charge a training fee of fifteen thousand dollars ($15,000).
If you must replace a trainee within ninety (90) days after completion of the
training program, we will allow the replacement to attend training at no
charge. We may also charge a training fee for continuing education programs.
5.
This
category includes estimated employee wages, opening cash, and other
miscellaneous expenses incurred before opening and during the first three
months of operations. We relied on our experience and that of our licensees 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.
