ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED
INITIAL INVESTMENT
1.
We do not finance any
of this fee.
2.
The
Development Agreement allows you to open up to 3 SARAH Businesses within the
Territory. Under the Development Agreement, the Initial Franchise Fee is $29^0034.900
for your first SARAH Business, $23^0032.400 for your second SARAH
Business and $24r90029T900 for your third SARAH Business, all of
which must be paid when you sign the Development Agreement. (See Item 5)
3.
We
provide instructors and instructional materials for the Initial Training
Program, but you (or, if you are a corporation or partnership, one of your
principals) are responsible for arranging transportation, lodging, and food and
any employees expenses. You (or your principal) are also responsible for paying
the wages of your employees who attend the Initial Training Program. The cost
will depend on the distance the attendees must travel and the type of
accommodations the attendees choose.
4.
Typical
locations are in settings that are close to caregivers'' place of work, such as
mixed use residential centers. The approximate size of a SARAH Business
facility is 4,000-5,000 square feet. Rent is estimated to be $60,000 to
$100,000 annually depending on size, condition and location of leased premises.
9SARAH 2007 Ul-OC2fl�8.Eu�
5.
This
estimate also includes charges you may incur for tenant improvements, which may
in certain circumstances be included in the amount of your rent payment.
6.
This
amount may be necessary to purchase TV and VCR equipment, computer hardware,
software, office furniture, decorations and fixtures. You will need to obtain
an inventory of basic office supplies, food and medical supplies and client
activity supplies.
7.
The
estimated cost for alt insurance during the first year of operation is
$6,000-$8,000. Required insurance policies include comprehensive general
liability, including third party fidelity bond coverage, worker''s compensation
and any other insurance required by statute or state law. These policies must
provide proof of having secured this insurance before your SARAH Business
commences operation.
8.
This
is an estimate of the amount vou will spondYou must pay us this
amount, which we will put into an escrow account for your future use, to be
used for advertising-andj marketing ferand public relations during
the first 3 months of operation.vour SARAH Business''
operation. This fee is due t() us
at
least 2 weeks before you or any of your personnel attend the Operations
Training Program^ (See Items 5 amLLL)
9.
The
monthly fee is $259 for the CADCare software program.
10.
This
is an estimate of additional funds you may need to bridge your initial
start-up. Your costs will depend on how much you follow our methods and
procedures; your management skills, experience, and business acumen; local
economic conditions; the local market for our service; the prevailing wage
rate; competition, and the sales level reached during the initial period. We
based this estimate on our approximately 10 years of experience in offering
and supporting franchised businesses and out affiliate''s approximately
23 years of experience in operating a similar business.
11.
We
relied on our experience to date to compile these initial investment estimates.
You should review these figures carefully with a business advisor before
deciding to acquire the franchise. We do not offer financing directly or
indirectly for any part of the initial investment. The range has been provided
because expenses might vary based on whether or not you need to lease office
space. None of these expenses are likely to be refunded.
