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PRO IMAGE - FDD UFOC ITEM 7 Detail

ITEM 7

 

YOUR ESTIMATED INITIAL INVESTMENT


Text Box: AMOUNT

$25,000

$40,000 to
$175,000
Text Box: As Agreed With

Initial Franchise Fee Merchandise Inventory

Initial Advertising Direct Marketing $ 600 and Expenses to

$ 1,500

Equipment

$ 500

Furniture and Fixtures

to $ 5,000

$ 4,500 to

Building and Leasehold

$13,000

$40,000 to

WHEN DUE

METHOD OF PAYMENT

Lump Sum

At signing.

 

Lump Sum and/or as Before Opening Incurred

Lump Sum

 

Lump Sum and/or as Before Opening Incurred

 

Before Opening

 

 

Lump Sum and/or as Before Opening Incurred

 

Before Opening


TO WHOM PAYMENT IS TO BE MADE

Pro Image ,

 

Pro Image and/or other Suppliers

Suppliers Suppliers

Suppliers Suppliers


 


Text Box: Although Pro Image has the contractual right to require 3% of monthly gross sales, Pro Image is presently not requiring an advertising fee to be paid into a National Marketing Fund. (Section 11 of the Prospectus.)

2     All fees are imposed by and are payable to Pro Image. All fees are non-refundable.
2	As described in Item 5 above, the initial franchise fee is determined on a uniform basis for all persons currently acquiring a franchise. However, if you have purchased another franchise directly from Pro Image for $25,000.00 the initial franchise fee for a subsequent franchise purchased at this time is $12,500.00, whether the franchise purchased is for a Pro Image store franchise or for a CAPZ store franchise. Pro Image franchises purchased from a franchisee do not qualify you for the reduced price. Pro Image does not guarantee this franchise fee on future purchases but all later purchases will be at the then current franchise fee rate. Other than as specifically set forth in Item 11, page 12, Pro Image does not give refunds.

3	Unless you already own or lease a suitable location for a Pro Image store, space will likely be purchased or


 

 

Improvements[1]

Travel and other Expenses Incident to Training

Insurance


AMOUNT

 

$121,500

$ 1,700 to

$ 3,000

$ 2,000

to $ 5,000

METHOD OF

PAYMENT

Supplier

As Incurred

 

As Agreed With Supplier

WHEN DUE

 

 

 

As Incurred

 

 

As Incurred


TO WHOM PAYMENT IS TO BE MADE

 

Suppliers

 

 

Suppliers


 


Miscellaneous Opening Costs[2]


$ 7,000 to $9,000

As Incurred


As Incurred


Suppliers, Utilities, Deposits, etc.


 


Text Box: As IncurredAdditional Funds ■ 3 months''

 

Total[3]


$10,000 to

$75,000

$131,300 to

$408,000


As Incurred

 

 

(Does not include real estate costs)


Employees, Suppliers, Working Capital


 

 



leased. Since real property values vary widely, Pro Image cannot reasonably estimate this item of expense. The typical Pro Image Store is in a shopping mall or retail area and requires approximately 600-2000 square feet, and outlet stores requiring approximately 1800-3500 square feet. Since each location requires various leasehold improvements, the cost ranges between $40,000 and $121,500.

[2]�� You should anticipate incurring additional expenses for items like legal costs, insurance, licenses, security

[3]�� Pro Image relied on its twenty one years of experience in the retail sales business to compile these estimates. You should review these figures carefully with a business advisor before making any decision to purchase the franchise.





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