Expenditures Tvp�
of Expenditure flMote
Estimated Low- Method of������������������������������������������������������������������������� To
Whom Payment
D������������������������������������������� High Range����� Payment������������������������������� When Due������������������� Is
To Be Made
Additional Funds -��� $250
-$1,750��� As Incurred����� As Incurred������ Various Parties
Three Months
(Note
7)
Total������������������������������������� $13,950
-
(Note8) $18,650
1������������ None
of these payments are refundable.
2������� We expect you to
operate your Outdoor Connection�- business from your residence or from a
pre-existing office or retail store. We do not expect you to open an office or
store separate from your residence for the operation of the business.
Accordingly, we do not expect you to incur any expense for real property or
fixtures.
3
The
maximum amount allows for the purchase of a television, DVD recorder, computer
with Internet access and e-mail capabilities, and fax machine. This amount
assumes you purchase basic equipment for your business. If you operate your
business from your home or from a pre-existing office or retail store, and if
you already have a television, DVD recorder, computer with Internet access and
e-mail capabilities, and/or fax machine at the location you operate your
business from, you may not need to incur some or all of these expenses. You
must own a computer with Internet access and e-mail capabilities. While we
allocated up to $1,200 for a basic computer with Internet access and e-mail
capabilities, you can buy a used computer for less than half that amount, and
you could also spend more if you choose to do so.
4
We
will provide an opening inventory of materials you will need to operate your
business as a part of your Initial Franchise Fee (see Item 5).
5
The
actual amount you spend for this item will depend on whether you drive or fly
to training, where you choose to stay while training, and the distance you must
travel. This estimate assumes you drive to training.
6
Includes
business licenses, attorneys'' fees, and a 1-year insurance premium. You must
maintain general comprehensive public liability insurance, motor vehicle
liability insurance and workers'' compensation insurance. The liability policies
must have coverage limits of at least $1,000,000. The coverage must be insured
by insurance companies rated "A" or better by Alfred M. Best &
Company, Inc. or such other insurance company approved by us. The insurance
premium is available for approximately $350-$600 per year. If you are servicing
an outlet of a Reserved Account, the Account may require you to carry different
amounts or types of insurance and to name the Account and its outlet as
additional insureds.
7
This
amount is an estimate of your initial start-up expenses during the first three
months of operating your business. We have not included the cost of labor,
since we expect you will operate the business, and will not pay yourself a
salary or you have a pre-existing manager who will operate the business and is
already your employee. The amount listed is an estimate and we cannot guarantee
you will not have additional expenses either in starting the business or during
the first three months. Your costs will depend on factors like: how closely you
follow our methods and procedures; your management skill, experience, and
business acumen; local economic conditions, the local market for your services;
competition; and the sales level reached during the initial period. This amount
includes an expenditure of $50 per month in advertising. We recommend you spend
more than this amount on monthly advertising.
In
putting together these estimates, we relied on the experience of our
franchisees during the last year. Your actual investment could be different
from our experience, particularly if you decide to hire employees, rent
high-priced office space, add on to your pre-existing retail store, office or
residence, or incur expenses we do not recommend you incur during the first few
months of operating your business. We do not offer financing for any part of
the initial investment other than the Initial Franchise Fee (see Items 5 and
10). The availability and terms of financing for the rest of your initial
investment will depend on factors like the availability of financing generally,
your credit worthiness, your relationship with local banks, and any additional
collateral you offer to a lender to secure the loan. Our estimates do not
include any finance charges, interest or debt service obligations.
