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INTENTIONALLY
TOTAL: $121,100-$433,000
Note 6
NOTES:
1. The franchise fee for your
first franchise will be $15,000 and for each additional franchise $9,500. If a MUA is signed, you will be
required to pay the franchise fee with respect to a certain number of the
franchises purchased as agreed to by you and us. No payment to us is
refundable.
2.
You
must secure suitable real estate for your Restaurant. Typical locations are
between 1,200 and 1,500 square feet. Ordinarily, the real estate is leased. The amounts
indicated assume the real estate is leased and reflect a typical range of
monthly rentals. The amount of your rent is dependent upon such factors as
size, condition and location. Neither Hungry Howie''s nor its affiliates will
lease real estate to you. The amount of rent, the time at which the rent is due
and to whom the rent must be paid is subject to negotiation by you and the
landlord. Security deposits are payable to landlords and utility companies.
3.
The
amount shown is for the purchase of equipment and fixtures. If you lease these
items, your initial investment will be less than the amount shown but there
will be a monthly lease payment.
4.
You
must maintain the following insurance coverage: workers'' compensation and
occupational disease; general liability, including products liability with a
limit of not less than $1,000,000 per occurrence and non-owned and hired auto
liability with the highest attainable limit available in the state in which
your Restaurant is located. Non-owned automobile insurance is required for all
Restaurants to which Hungry Howie''s grants the right to deliver. If you own,
individually or with others, more than 50% of five (5) or more Restaurants
which have the right to deliver, you must also maintain excess liability
insurance of at least $2,000,000.
5.
This
estimates your initial start-up expenses including payroll costs. These
estimates are for owner operated stores and no owner''s draw or salary is
included in the estimate. These figures are our estimates and we cannot
guaranty that you will not have additional expenses starting your business.
Your costs will depend upon such factors as: the extent to which you follow our
methods and procedures; your management skill, experience and business acumen;
local economic conditions; the local market for our product; the prevailing wage
rate; competition; the sales level reached during the initial period and
occupancy costs for your Restaurant.
6.
We
have relied on our experience in the pizza/submarine sandwich business to
complete these estimates. You should review these figures carefully with a
business advisor before making any decision to purchase the franchise.
7.
We
do not offer direct or indirect financing to franchisees for any items.
8. Media and direct mail
advertising must be approved by us.
