I. These figures are
estimates. We make no representation that your costs will come within the
ranges estimated and cannot guarantee that you will not incur additional
expenses starting your business. Your actual costs will depend on: region; size
of your site, time of year; how much you follow our methods and procedures;
your management skill, experience and acumen; local economic conditions; local
market for your services and products; prevailing wage rate; competition; and
sales levels that you reach during the initial period of your business. Except
as noted, we do not offer financing directly or indirectly for any part of the
initial investment. The availability and terms of financing depend on the
availability of financing generally, your creditworthiness and collateral and
lending policies of financial institutions.
2- The estimates provided arc for a period of
three ,(3) months^.unless otherwise indicated;
3.
See
Item 5 for more information about the initial franchise fee and the area
development fee,and, the regional development fee.
4.
,We
provide initial training to you, your general manager. Center manager and/or
staff at no additional charge and currently provide initial training at
your location (see Item 11).
5.
You
are responsible for other expenses you or your employees may incur in the
initial training program,Tsuch as travel and living expenses and
meals during initial training in Texas.
9.
.This
amount includes an estimate of the cost of initial legal, accounting and other
professional services.
10.
.You
must construct and equip your Center to pwm specifications. You must
choose
either jhe Franchisee-Directed Buildout, or the Turn-Key Buildout
option to do this. If you choose the Franchisee-Directed Buildout, you
must pay .us.,approximately $50.000 for, Roosters Specific
Equipment, depending on your Center''s needs.� If you,ask us
to.order Additional Equipment we charge a fee equal to 15% of the
cost of the Additional Equipment. If you choose .the Turn-Key Buildout.
vou will jiav us a fee between $120.000 to,$180,000,,dependingon
the nature, location and Tsizc of
^our .Center. See Items 5 and J for more information.
11.
.This
estimates the funds needed to cover your initial expenses for the first 3
months of operation. It includes payroll costs (but not any draw or salary for
you), utilities, and miscellaneous supplies. However, this is only an estimate,
and it is possible that you will need additional working capital during the
initial period. This 3-month period is not intended, and should not be
interpreted, to identify a point at which your Centers) will break even. We
cannot guarantee when or if the Centefls) will break even. Your costs will
depend on your management skill, experience, and business acumen; local
economic conditions; the prevailing wage rate; competition; and your Centers
sales during the initial period.
12.
.We
have relied on our ^suppliers'' and our principals'' many collective years
of experience in this business to compile these estimates. .Because these figures
are only estimates, it is possible both to reduce and to exceed costs in any of
the areas listed above. Actual costs may substantially exceed these estimates
in a few major metropolitan markets. You should review all figures carefully
with a business advisor before you decide to purchase the franchise. The
estimate does not include any finance charge, interest, or debt service
obligation.
13. These figures, are based on
an area development fee of $ 15.000. plus the franchise fee for the first
Center under in the amount of $15.000.,plus,a franchise ice
deposit on two (2) additional Centers in the amount of $5.000
each. The balance of the .franchise fee of SlO.OOO per additional Center
is payable to us at the time the area developer signs a lease.
14.
These
figures arc, based on the minimum regional development fee of $100,000
representing ihe nun imum development obligation often
(10) stores at $10.000 per store.
Deleted::
Deleted: pay us an amount
ranging from 5100,000
Deleted: $200,000 for construction
consultation services. In
Deleted: case.
Deleted: purchase and install
fixtures and equipment such as cabinetry, hair cutting furniture, reception
desk, chairs, retail display, television, appliances and a computer system (see
Item 11} and purchase
Deleted: install store-front
and in-store signs. For a Turn-Key Center, we will also provide the services
Deleted: a general contractor,
and adapt our standard plans to fit your approved site and construct all
leasehold improvements including floor covering, wall treatment, counters,
ceilings, painting, window coverings, electrical, carpentry and similar work at
your approved site. Otherwise, we will supervise
Deleted: selected general contractor.
Deleted: 6
Deleted: 9.. If you do not use
our services to construct a Turn-Key Center, you must engage a general
contractor for construction services and pay all charges associated with those
sen ices. If you use our services for a Turn-Key Center, you will not need a general
contractor.^
10. .
Deleted:
Deleted: II.
