FISH WINDOW CLEANING - FDD UFOC ITEM 7 Detail

ITEM 7

ESTIMATED INITIAL INVESTMENT

YOUR ESTIMATED INITIAL INVESTMENT

(1)               
The following are the estimated minimum requirements for beginning operations for a FlSH window CLEANING Business. The estimated minimum requirements may vary depending on factors like your financial condition and the arrangements and business decisions you make. Except where otherwise noted, all fees that you pay to us are nonrefundable. Third-party lessors and suppliers will decide if payments to them are refundable.

(2)                INSERT DESCRIPTION OF TRAVEL AND LIVING EXPENSES. Training is included in the Initial Franchise Fee. See Items 6 and 11.

(3)                As explained in Item 8, you must purchase an Equipment Package and an Office Package. The items in the Equipment Package and the Office Package are listed in the Operations Manual. The cost of the Equipment Package ranges from $4,500 to $5,000. The Equipment Package provides all the cleaning equipment needed for two window cleaners. The cost of the Office Package ranges from approximately $9,000 to $11,000, which includes $5,000 to $6,000 you pay to us for invoices, estimate sheets, brochures, training materials and software. The Office Package provides all the office supplies and equipment needed to open your business, including your computer and printer equipment, office furniture and the FlSH WINDOW CLEANING computer software package (as defined in Item 11). Also included in the Office Package is your initial supply of maps, motivational posters, employee recognition plaques and other miscellaneous office supplies.

(4)                The Initial Business Development and Marketing expense includes your Grand Opening Business Development Package Fee of $6,000, as described in Item 5; your required expenditures during weeks 1-13 for your Monthly Marketing Requirements (as described below); certain items you purchase from us, such as brochures, yard and magnetic vehicle signs, and logo sales tools; and business cards, FlSH WINDOW CLEANING logo uniforms and other miscellaneous items that you are required to purchase through our approved vendors. Your "Monthly Marketing Requirement" is the amount you are required to spend in your Territory on approved business development activities during weeks 1-13. The minimum amounts for this Monthly Marketing Requirement are as follows: Micro Package, $1,200 per month; Small Package, $1,600 per month; Standard Package, $2,700 per month; Executive Package, $3,800 per month. Your local marketing requirement can be spent by you on a variety of corporate marketing programs that will be described and available to you, or other local business development activities initiated by you that we approve. Your Monthly Marketing Requirement also includes a minimum of $500 per month to advertise in your local Yellow Pages. See Item 11 for more information on advertising and marketing.

(5)                This amount is an estimate for attorneys'' fees in connection with your purchase of the franchise.

(6)                We require you to have an office outside the home. Depending on locale, office rent may cost from $400 to $600 per month.

(7)                Insurance premium estimates are for comprehensive liability insurance only. See Item 6 for additional information on insurance.

(8)                Licenses and permits may cost between $25 to $300 annually depending on your locale and your choice of business entity. We may require that you maintain memberships and pay membership dues to both the IWCA (International Window Cleaner''s Association) and the IWCCI (International Window Cleaner Certification Institute). The dues are approximately $600 annually and are subject to change, especially if you perform any window cleaning services on "high rise" buildings or where roof access is required to perform window cleaning services.

(9)                This amount estimates your initial pre-opening and start-up expenses not otherwise mentioned in the Table, including taxes, telephone and fax requirements, as described in Item 11, and potential payroll costs. The amounts are estimates based on our estimate of average costs and market conditions prevailing as of the date of this Disclosure Document and our 10 years and our predecessor''s 30 years of experience in the Business. We cannot guarantee that you will not have additional expenses starting your Business. Your costs will depend on factors such as how much you follow our systems and procedures, your management skills and experience, your business skills, local economic conditions, the local market for the FlSH WINDOW CLEANING Business, the prevailing wage rate, competition and the sales level reached during the initial period.

(10) This total is an estimate of your initial investment and is based upon our estimate of average costs and market conditions prevailing as of the date of this Disclosure Document and our 10 years and our predecessor''s 30 years of experience in the Business. You should review this amount carefully with a business advisor before making any decision to purchase the franchise. You are cautioned to allow for inflation, discretionary expenditures, fluctuating interest rates and other costs of financing, and local market conditions, which can be highly variable and can result in substantial, rapid and unpredictable increases in costs. You must bear any deviation or escalation in costs from the estimates in this Item 7 or estimates that we give during any phase of the development process.