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PACIUGO - FDD UFOC ITEM 7 Detail
1.
ITEM 7
ESTIMATED INITIAL INVESTMENT
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YOUR ESTIMATED INITIAL
INVESTMENT
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TYPE
OF EXPENDITURE
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STAND�ALONE UNIT RANGE OR AMOUNT
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KIOSK UNIT RANGE OR AMOUNT
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METHOD OF PAYMENT
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WHEN DUE
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TO WHOM PAID
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Franchise Fee (Note 1)
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$30,000
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$30,000
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Lump sum
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When you sign the Franchise
Agreement
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Us
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Rent (Note 2)
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$2,000 $10,000
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$500 $8,000
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As
required by payee
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Monthly
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Landlord
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Leasehold Improvements (Note
3)
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$60,000 $200,000
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$0 $100,000
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As
required by payee
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As incurred, before opening
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Various
suppliers
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Equipment (Note 4)
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$40,000 $100,000
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$30,000 $100,000
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As
required by payee
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As incurred, before opening
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Approved
suppliers
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YOUR ESTIMATED INITIAL
INVESTMENT
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TYPE OF EXPENDITURE
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STAND�ALONE UNIT RANGE OR AMOUNT
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KIOSK UNIT RANGE OR AMOUNT
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METHOD OF PAYMENT
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WHEN DUE
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TO WHOM PAID
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D�cor (Note 5)
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$5,000 $18,600
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$0 $10,000
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As required by payee
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As
incurred, before opening
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Approved suppliers
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Signs (Note 6)
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$5,000 $20,000
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$2,500 $10,000
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As required by payee
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As
incurred, before opening
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Approved
suppliers
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Opening Inventory and
Supplies (Note 7)
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$5,000 $8,000
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$5,000 $8,000
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Lump sum
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As incurred, before opening
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Paciugo Supply
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Installation (Note 8)
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$3,000 $6,000
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$1,000 $5,000
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As
required by payee
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As incurred, before opening
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Approved suppliers
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Computer System (Note 9)
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$18,000 $19,000
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$0 $22,000
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As required by payee
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As incurred,
before opening
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Approved suppliers
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Training Expenses (Note 10)
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$500 $4,000
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$500 $4,000
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As required by payee
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As incurred, before opening
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Airlines, hotels,
restaurants, etc.
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Grand Opening
Costs (Note 11)
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$3,000 $5,000
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$3,000 $5,000
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As required by payee
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As incurred,
before opening
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Approved
supplies, postal service, etc.
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Miscellaneous Opening Costs (Note 12)
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$1,200 $4,000
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$0 ■ $1,000
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As required by payee
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As incurred, before opening
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Utility
companies,
government
al agencies,
insurance
companies,
suppliers,
etc.
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Additional
Funds For First 3 Months (Note 13)
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$6,000 $9,500
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$6,000 $9,500
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As required by payee
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As incurred,
before or after opening
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Employees,
suppliers,
professional
s, utility
companies,
government
al agencies,
insurance
companies,
suppliers
etc.
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TOTAL:
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$178,700 $434,100
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$78,500 I $312,500 I
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I
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NOTES:
None of the fees and costs
payable to us are refundable, unless otherwise described. Fees and costs
payable to others are generally not refundable unless you negotiate this right
with them.
1. Franchise Fee. The
initial franchise fee and certain pre-opening expenses are described in Item 5
of this disclosure document, and are non-refundable, except as described in
Item 5.
2.
Rent. We estimate that a typical
stand-alone Unit will need from 800 to 1,300 square feet of floor space and
approximately 300 square feet for additional laboratory and storage. We
estimate that a typical kiosk Unit will need from 100 to 250 square feet of
floor space and approximately 200 square feet for additional laboratory and
storage. It is not possible for us to estimate your rent expenses with much
certainty, due to the material differences in these costs from location to
location, and because some institutional landlords may charge a variable rent
based on a percentage of your sales, with no fixed minimum rental charge. You
should investigate rents in your own area.
3.
Leasehold
Improvements. Leasehold improvements involve expenses associated with the design
and build out of the Unit, such as plumbing, electrical and remodeling work.
You may be able to negotiate with your landlord for a landlord contribution for
these expenses. The considerable spread from minimum to maximum is due to
factors such as Unit size and type, configuration, remodeling needs, location
and unions. The estimate shown does not reflect any landlord contribution. The
contractor must be approved.
4.
Equipment. The estimates are for the
equipment you will need to open a Unit. All of these items are available for
purchase from the approved suppliers.
5.
Decor. The estimates are for the
decor items (including furnishings and fixtures) you will need to open a Unit.
All of these items are available for purchase from approved suppliers.
6.
Signs. The estimates are for the
signs you will need to open a Unit. These signs are available for purchase from
approved suppliers.
7.
Opening
Inventory and Supplies. The estimates are for opening inventory and
supplies, which are available for purchase from Paciugo Supply.
8- Installation. The
estimates are for the costs of installing the equipment. Approved suppliers
will provide these installation services.
9.
Computer System. Includes purchase of point-of-sale system and
installation, and purchase of remote monitoring / remote management system and
installation. See Item 11 for additional information.
10.
Training
Expenses.
See Item 11 for additional information. The estimates include costs for the
attendance of 1 trainee. Travel expenses vary substantially depending on method
of travel, point of origin, distance, advance purchase requirements, and other
factors. The low estimate is for a franchisee within daily driving distance of Dallas, Texas. The high estimate includes amounts for airfare, hotel, rent car and meals. These
estimates do not include any salary or wages you may pay to any of your
trainees for the time they spend in training.
11.
Grand
Opening Costs. The estimates are for the costs of design customization, printing and
mailing grand opening announcements, opening discounts, and free product
give-aways in connection with your grand opening celebration.
12.
Miscellaneous
Opening Costs. Includes utility costs and deposits, security deposits, insurance
premiums, and business licenses and permits.
13.
Additional
Funds.
You will need capital to support on-going expenses, such as payroll, insurance
premiums, taxes, bonds, initial accounting services, overhead, and other
miscellaneous expenses, to the extent these expenses may exceed your sales
revenues. We believe that the estimated amount will be sufficient to cover
on-going expenses in excess of your sales revenues for the first 3 months of
operation. This amount is an estimate, and it does not include any debt service
payments. We cannot guarantee that you will not have additional expenses
starting your business. Your actual costs will depend on factors such as your
management skill, experience and business acumen, economic conditions, the
local market for your business, the local prevailing wage rate, competition and
the performance of your Unit. We relied on our experience and Authentic
Gelato''s experience since 2000 in estimating your needs for additional funds.
The table in this item
estimates the major initial expense categories involved in establishing one
Unit in accordance with our current plans and specifications. ACTUAL EXPENSES
WILL VARY AMONG FRANCHISEES. CAREFUL FINANCIAL PLANNING IS ESSENTIAL FOR ALL PROSPECTIVE
FRANCHISEES. You should consult with a business advisor before making any
decision to purchase a franchise.
Neither
we nor any affiliate offer direct or indirect financing for any fees or
expenses. See Item 10.
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Franchise Categories
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Franchises
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Paciugo Italian Gelato
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PACIUGO FDD & UFOC Data
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PACIUGO FDD & UFOC ITEM 7
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