ESTIMATED INITIAL INVESTMENT
The following ohart providos on estimate of
your initio! investment for a Designated Market Aroa
oonaisting of 30,000 potential customers:YOUR ESTIMATED INITIAL
INVESTMENT
|
DESCRIPTION OF
FYppvcp-r,,,,,. ne
|
ESTIMATED
RANGE OF
POST CI OW
|
METHOD
OF
PAYMENT1
* Method of Payment*"
|
WHFN DI IFYVhrn
|
TO WHOM QWEDTo Whom Payment
is to be Made
|
|
VjjWOI''j 1 VPC Ol
Expenditure
|
H4GH)Amount
|
Due
|
|
Initial Fees
|
|
|
Initial License Fee12''
|
$ 10,000 $ 10,000
|
Lump Sum
|
When
you sign the Franchise Agreements
|
Us
|
|
Initial Territory Fee''3''
|
$ 28,500 - $ 28,500
|
Lump Sum
|
When
you sign the Franchise Agreements
|
Us
|
|
Initial Equipment and Supply
Package
|
$ 12,333567-$ 12,323567
|
Lump Sum
|
When
you sign the Franchise Agreements
|
Us
|
|
Initial Software License
|
$��
2,595 - $ 4,595
|
Lump Sum
|
When
you sign the Franchise Agreements
|
Us
|
|
SUBTOTAL
|
$ S3W662 - S 55,M7662
|
|
Start Up Costs Due Others
|
|
|
Office Security Deposit
|
$��� 700-$ 1,800
|
Lump Sum
|
Before Opening
|
Landlord
|
|
Computer Hardware('',
|
$ 2,000 - $ 4,000
|
Lump Sum
|
Before Opening
|
Supplier
|
|
Office
Fixtures, Decorating & Furniture
|
$ 2,500 - $ 3,500
|
Lump Sum
|
Before Opening
|
Supplier
|
|
Auto Painting
|
$��� 500-$ 1,000
|
Lump Sum
|
Before Opening
|
Supplier
|
|
Telephone Deposit
|
$��� 100-$ 200
|
Lump Sum
|
Before Opening
|
Supplier
|
|
Insurance Deposit''5''
|
$� 1,500-$ 2,500
|
Lump Sum
|
Before Opening
|
Supplier
|
|
Signs
|
$��� 100-$ 1,000
|
Lump Sum
|
Before Opening
|
Supplier
|
|
Washer and Dryer
|
$��� 800-$ 1,000
|
Lump Sum
|
Before Opening
|
Supplier
|
|
StartUp Professional Services
|
$��� 500-$ 1,500
|
Lump Sum
|
Before Opening
|
Supplier
|
|
Wages, Travel and Living Expenses During Corporate
Training
.-and Field Training''61
|
$ 5,000-$ 8,500
|
As Incurred
|
During Training
|
Manager, Airlines, Hotels, and Restaurants
|
|
SUBTOTAL
|
$ 13,700 - $ 25,000
|
|
Operating Expenses (First 3
months)
|
|
|
Office Lease/Utilities
|
$ 2,100-$ 2,400
|
As Incurred
|
Monthly
|
Landlord/Supplier
|
|
High Speed internet
|
$��� 300 - $ 600
|
As Incurred
|
Monthly
|
Supplier
|
|
Automobile Payments
|
$ 1,200-$ 1,500
|
Lump Sum
|
Monthly
|
Supplier
|
|
Office Supplies
|
$�� 300 - $ 600
|
Lump Sum
|
As Incurred
|
Supplier
|
|
Ongoing Professional Services
|
$�� 200 - $ 600
|
Lump Sum
|
As Incurred
|
Supplier
|
1.
Payments are
non-refundable unless otherwise noted.
2.
The
Initial License Fee for your first The Maid� Business is $10,000. See Item
5.
3.
The
price for each potential customer located in the Designated Market Area you
purchase will be $.95 per potential customer. See Item 5. The range of
size of a Designated Market Area encompasses approximately 10,000 to 200,000
households, see Item 12 Territory, for additional details.
4.
See
Item 11 of this Offering CirculorDisclosure Document
for more complete information regarding the computer hardware necessary to
operate your The Maids� Business.
5.
See
Item 8 of this Offering CiroularDisclosure Document and
Article 12 of the Franchise Agreement for more complete information regarding
the insurance coverages necessary for your The Maids� Business.
6.
You
must pay for the salaries, fringe benefits, travel costs, lodging, food,
automobile rental and other expenses incurred for all persons attending our
corporate training program.
7.
This
estimate does not include the Continuing Fees or the Advertising Fees you must
remit to us. This
estimate does not include payroll costs or any franchisee compensation. These figures are estimates
only, and it is possible that you may have additional or greater expenses
during this initial three month period. Your costs will vary depending on the
size of your The Maids� Business, economic and market conditions, competition,
wage rates, sales levels attained, and other factors.
8.
Your
estimated initial investment and other estimates in this Offering CiroularDisclosure
Document do not take into account any debt service, ongoing working
capital, accounts receivable financing or other costs. Also, no provision has
been made for capital or other reserve funds necessary for you to reach
"breakeven", "positive cash flow" or any other financial
position and we do not furnish, nor do we authorize salespersons or anyone else
to furnish, estimates or
otherwise as to those amounts.
The figures presented do not estimate ongoing operating costs, and the actual
minimum initial cost necessary to commence operations may vary considerably
from the estimates provided. The numbers are estimates only and there is no
assurance that additional funds might not be needed by you before or after
opening your The Maids� Business. These estimates are based on our 27 years of
experience in franchising and operating The Maids� Business, and are derived
primarily from information which franchisees provide to us. These estimates
make no provisions for personal living expenses needed by you and your family.
9:-If-youare-a-start
up franohisee, we will remit4o-you-an-Advertising
Contribution-Amount for
advertising oxpondituros
spent within tho first 12 months of commencing operations.
Only start up franchisees, and not franchisees who ore acquiring
the business of an existing franchisee or expanding into new
Territories, qualify for this program. Tho Advertising Contribution Amount
ranges from $1,000 to $1,000, depending upon tho number of potential
customers in your Designated Market Area-Advertising
Contribution Amounts:
� 10,000 to 21,999 Household
Market-------------------- $1,000
�25,000 to 31,999 Household
Market----------------------- $3^00
�35,000 to 41,999
Household Market----------------------- $^000
�15,000 or larger
Household Market------------------------ $1,000
40i9.��� Since costs to begin
operating a The Maids� Business can vary with each franchise (particularly if
you are purchasing an existing The Maids� Business), we strongly recommend that
you (1) obtain, before purchasing a The Maids� franchise or making other
commitments, independent estimates from third-party vendors and your accountant
of the costs which would apply to the establishment and operation of a The
Maids� Business, (2) discuss with current and past The Maids� franchisees their
economic experiences (including initial investment and appropriate reserve
funds) in opening and operating a The Maids� Business, and (3) evaluate
carefully the adequacy of your total financial reserves with an accountant or
other professional financial advisor.
