Notes:
1.
This
includes the $7,500 Grand Opening Deposit paid to Jet''s. You are responsible
for any costs in excess of the Grand Opening Deposit. The grand opening
expenses tend to be toward the higher end of the range if television and radio
advertising is used, and tend to be toward the lower end of the range if no
television or radio advertising is used.
2.
This
table assumes you will lease space for your Jet''s Pizza franchise. A new Jet''s
Pizza restaurant typically has 1,400 square feet, and is located in a strip
shopping center in a heavily populated urban or suburban area. Rent varies
widely depending upon local market conditions. Rent is estimated to be $12,000
to $48,000 per year depending upon factors like the amount of space, condition
and location of the leased premises, and whether you or your landlord will
construct the interior of the premises. The security deposit is estimated to be
one or two months'' rent.
3.
Includes
normal costs of installation of utilities and fees for building permits and
inspections for a typical commercial space. This does not include extraordinary
costs that may be necessary due to the age or condition of the building, or for
water or sewer taps, which may be necessary in rare instances. This also does
not include fees that may be charged by local government departments and
agencies, which may vary greatly from jurisdiction to jurisdiction. If you, as
opposed to your landlord, bear the cost of your leasehold improvements, the
cost will tend toward the higher end of the range in the table but your rent will
tend toward the lower end of the range in the table; and vice versa if your
landlord bears the cost of your leasehold improvements.
4.
Includes
utility deposits and utility costs during construction, the cost of organizing
your business, sales tax license and health department certification.
5.
Opening
inventory includes all of your opening inventory and supplies, including food
ingredients, beverages, packages, cups, boxes, napkins, plastic ware and
cleaning supplies.
6.
Includes
worker''s compensation, personal property and public liability insurance, and
delivery and non-owned automobile insurance to cover employee vehicles used to
pick up supplies and deliver food. This figure represents the estimated cost
for three months of coverage.
7.
This
includes estimated payroll costs, royalty fees, advertising, and assumes a
typical level of income, for the initial three months of business. These
figures are estimates and Jet''s cannot guarantee that you will not have
additional expenses or a lower level of income in starting the business. Your
costs will depend on factors like how much you follow Jet''s methods and
procedures, your management skill, experience and business acumen, local
economic conditions, the local market for our product, the prevailing wage
rate, the level of competition, and the sales level reached during the initial
period.
|L The initial franchise
fee is non-refundable. The Grand Opening Deposit mav be partially or
entirely refundable as discussed in Item 5. Amounts payable to third parties
are generally non-refundable. although vou mav be able to negotiate
otherwise.
& eVJet''s does not offer
direct or indirect financing to franchisees for any items. Jet''s relied on over
24 years of experience in the pizza business to compile these estimates. You
should review these figures carefully with a business advisor before making any
decision to purchase the franchise.
10. 07-lf you acquire area
development rights, you must pay an area development fee when you sign the Area
Development Agreement. The amount of the area development fee depends upon the
number of franchises that you will have the right to develop under the Area
Development Agreement. Jet''s typically grants the right to acquire a minimum of
three franchises under an Area Development Agreement, and the area development
fee in that case is typically $32,500. The area development fee is fully
earned, at the time the Area Development Agreement is signed, regardless of the
number of franchises you actually open for business. By signing an Area
Development Agreement and paying
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