(1)
All fees are imposed by and
are payable to Lil'' Pals. Further, all fees are non-refundable and are
uniformly imposed. There are no fees imposed by cooperatives.
(1) We will customize a
trailer that will be used as the mobile studio for pet photography. You will
lease or purchase this equipment from an approved vendor. Because most
Franchise Owners own, have access to or can rent or lease a truck or other
suitable vehicle to pull the trailer, there is no estimated investment for the
truck or other vehicle included in this table.
(2)
You
may purchase this equipment and supplies from Lil'' Pals or from other vendors
that we approve. The Initial Owner Training will include hands-on picture
taking experience with the equipment, so you must have the equipment and
supplies before the training class begins.
(3)
Lil''
Pals will provide you with the names and contact numbers of hotels at which you
may stay during the initial training. Lil'' Pals furnishes the noon meals during
training. You will pay all other costs associated with the training.
(4) You will need to obtain a
credit card machine that you can take with you to the photo shoots to
accommodate those pet owners who wish to pay for their picture packages through
their debit or credit cards. If you do not already have a credit card machine,
this is an average of the amount to be charged by a bank for the machine, forms
and deposit.
(5) Lil'' Pals recommends that all
Franchise Owners operate from their home. If a Franchise Owner cannot operate
their business from their home, they may use the mobile unit. With wireless lap
top computers, portable printers, cell phones and the mobile unit, there is no
need for a storefront or photo studio location. Thus, there are no expenses to
be paid that are associated with real estate acquisition, leasehold
improvements or signs. The deposits and licenses are an estimate for a business
phone line, local business license and licenses for the mobile unit and sales
tax and other local taxes and charges.
(6)
You
will need insurance in the following minimum types and amounts:
�
General
liability in the minimum amount of $1 million dollars for each occurrence and
$2 million dollars for the aggregate of all occurrences
�
Property
insurance for the equipment and supplies that you purchase according to their
value
�
Vehicle
insurance that will cover damage and loss to the mobile unit
�
Worker''s
Compensation insurance that covers anyone working with you
Because insurance premiums
vary greatly with companies, business insurance packages and state
requirements, it is extremely difficult to give an exact figure or even an
approximate figure for the annual or monthly insurance costs. Nevertheless, we
estimate the annual insurance premiums to be between $2,000 and $6,000.
(7)
This
is an estimate of the expenses for the first three months of the operation of
your business. These expenses include payroll costs, if any, advertising and
promotion expenses as well as legal and accounting charge. These figures are
estimates and we cannot guarantee that you will not have additional expenses
starting the business. Your costs will depend on factors such as: how much you
follow our methods and procedures, your management and marketing skill,
experience and business acumen, local economic conditions, the local market for
our product, the competition, and the sales level reached during the initial
period.
(8)
After
you have taken the pictures of the pets, you will assist the owners of the pets
in deciding which pictures to purchase and collect their payment before you
send the images to the photo processing lab approved by Lil'' Pals. When the lab
completes the processing of your pictures and sends them to you or to the host
location, you will be charged for the pictures. Although this amount varies
with the number of images taken during your first photo shoot, the average
amount is $100. Depending upon the distance of the host location of the pet
photo shoot from your business location, you will pay for gas, meals and other
travel related expenses. Income from your job or from your spouse''s or
another''s job will meet additional living expenses.
We
used our years of experience to compile these estimates. However, they are just
estimates. You should review these figures carefully with a business advisor
before making any decision to purchase the Lil'' Pals franchise. Further, Lil''
Pals does not offer direct or indirect financing to Franchise Owners for any
item.
