Unless otherwise noted, none
of the initial fees are refundable. The security deposit that you pay for the
premises lease or in connection with an equipment lease may be refundable at
the end of the lease under the conditions set forth in the lease. Third party
suppliers will decide if payments to them are refundable. If you sign an Area
Development Agreement you will also have to pay the Area Development
Fjgejminimum of $50,000).
NOTES:
(1)
The
low/high range for store initial investment costs largely depends on the size
of your store, prior use and overall condition. Our expenses assume you locate
in an outdoor strip shopping center. We base the low range on an 800 square
foot store and the high range on a 1,500 square foot store. The low range
assumes the condition of the store requires minimal improvements to renovate it
to our requirements for a Robeks� store. The low and high ranges assume that
construction, labor and materials are competitively priced.
(2)
Leasehold
improvements include costs to conform the approved location to our
comprehensive specifications for lighting, flooring, wall coverings, ceiling
treatments, retail displays, store front design and build-out, general trade
dress components and other improvements to prepare the store for opening.
Actual costs will depend on the size and pre-existing condition of the approved
location. These estimates assume no structural, storefront or exterior
renovations and a competitive environment where multiple contractors bid the
leasehold improvements using the best available labor and material pricing in
the local market. These estimates also assume that the leasehold premises are
delivered in a "Vanilla Shell" condition, meaning that the landlord
provides most base building interior improvements such as mechanical systems,
utility lines and equipment, some ceiling and lighting improvements, electrical
outlets, drywall finish..building.and.health permits and restrooms, or a
credit to tenant for the same. Actual costs may be lower if the landlord provides
over-standard improvements or contributes any additional tenant improvement
allowance.
(3}------- Fixtures-inolude
alt-custom-made mill work, cabinetry,-stainless-steel-fixtures-
and interior or exterior-seating
or-fumishings-.
(4A) Equipment includes
walk-in and under-counter refrigeration, juicing machines, juice storage and
dispensing machines, food and retail displays, frozen yogurt equipment,
blenders, safe and small wares. All equipment must be new, not used.
Our chart assumes that you purchase, rather than lease, all equipment. However,
your initial expenses may be lower if you lease or finance equipment.
stands^
and trash receptacles (subject to floor plan!
(4) Fixtures.includeall
custom-made millwork. cabinetry, stainless steel fixtures and interior or
exterior seating or furnishings.
(5)
The
estimated cost of signs assumes one building sign and one medallion window sign
per store.
(6)
Professional
fees include fees for services such as, architects and lawyers, and assume a
single fee basis (as opposed to a per hour basis) with no extraordinary
circumstances. Some of our franchisees have not used an attorney; thus, the low
end of the range does not include attorney fees.
(6A) The initial floor plan and layout is based on our
prototype interior layout plans and specifications for the design, appearance
and leasehold improvements of a typical Robeks� store.
(7)
Some
vendors, utility companies, and the landlord of your premises may require you
to pay a security deposit. Landlords vary in whether they require a security
deposit and in the amount they charge. The lease security deposit assumes no
more than 1 month of base rent. See-Note�7�pegarding�rent
expensesThese amounts do not include common .area,
maintenarjgg,.,real .estate taxes and insurance. landlord as,.u;if
Robeks Franchise Corporation 2007.UFOC
(umondod-3/07-)
IDE
(8)
If
you do not already own adequate retail space, you will have to lease suitable
real estate. In consenting to a site, we consider a variety of economic,
demographic and geographic factors, including visibility, access
. and proximity to substantial
daytime traffic, both pedestrian and vehicular. The real estate category is
based on rent ranging from a low of $3.00Q7Q0/month to a high of
$7,0007_QQ/month. Rent includes reimburseroents-to-the
landlord for- common area costs and ohorgesr
but ex eludes directly billed utility costs during this period, which we
include under the miscellaneous category. Rental rates can vary widely
depending on market conditions, the size and pre-existing condition of the
premises, and your own credit ratine. These estimates are for traditional
sites and do not include capjiy^audjence type locations suchas malls,
airports, college campuses, etc.
(9)
Opening
inventory estimates include a sufficient supply of ROBEKS� Nutritional Boosts and other
Proprietary Products, produce, beverages, ingredients, dry goods, food and
nutritional items and other products sold in ROBEKS� stores for both in-store
production and product sales to customers. The figures are estimates only and
not a prediction of your likely sales results or selling experience.
(10)
See
Items 6 and 11 for more information. Within the period of time from 30 days
prior to, through 90 days after opening your store, you must spend at least
$5,000 on grand opening advertising and promotion, but may chose to spend more.
We may exempt locations in Captive Market Venues from this requirement.
(11)
Miscellaneous
covers initial expenses not covered elsewhere in the chart, such as for initial
office supplies, business management software costs and other miscellaneous
items. The amount covers a period of 3 months. The additional funds that we
estimate you may need will vary considerably from one franchisee to the next
based on a variety of factors, including the number of employees you choose to
hire and the salary and other benefits you choose to pay; the extent you will
be actively involved in organizational-level, or store-level, operations; your
skill, experience, business acumen and credit-rating; local competition; local
economic conditions, including rent and wage scales and the cost of supplies;
and the actual sales levels that you reach during the initial 3 month period.
The "Additional Funds" category is not the only source of cash, but
is in addition to cash flow from operations. We cannot estimate your cash flow
from operations and encourage you to visit operating ROBEKS� stores to evaluate this on
your own. The Additional Funds category includes an allowance for payroll
expenses for all opening employees, but does not include any allowance for a
draw or salary to you or other owners of the franchise.
If you are signing an Area Development Agreement, keep
in mind that the Initial Investment chart in this Item is only for your first
Store. Other than the payment of the Area Development Fee, and the initial investment
for vqur first Store, vou will not have anv addjtjppal jnjtjql investment under
the Area Pevglppment.Agreement, It is anticipated that costs will
increase for subsequent Stores.
All figures in Item 7 are estimates only. We cannot guarantee that
you will not have additional expenses, or other categories of expenses, to
start the business. We rely on information provided to us by our franchisees in
the states in which we operate who have built stores of varying sizes, venues,
and levels of landlord work and contribution to tenant''s improvement. You
should review these figures and notes carefully with a business advisor before
making any decision to purchase the franchise.
