All payments to us are
non-refundable.
1/ The Initial Franchise Fee
is described in Item 5 of the Disclosure Document. We do not provide financing
for the payment of the minimum Initial Franchise Fee of $5,000; however we may,
at our option, finance a portion of the Initial Franchise Fee/ Development Fee
in excess of the minimum Initial Franchise Fee of $5,000. If we do provide
financing, the amount financed, plus interest at a rate equal to the
"Prime Rate" of interest as published by the Western Edition of the
Wall Street Journal, will be payable in full no later than 6 months after we
sign the Franchise Agreement. You must sign a Promissory Note in our favor
which will provide for payment of the amount due without interest. We do not
provide direct or indirect financing for items other than the Initial Franchise
Fee. Please see Item 10 for more information.
2/ You must purchase computer
hardware and software and other office equipment according to our specifications
unless you own this equipment before becoming a Total Golf Adventures
franchisee, in which case you may not have to purchase this equipment. You do
not have to maintain an office for your Franchised Business and may operate
your Franchised Business from your home.
3/ Your initial equipment
package contains golf equipment and accessories to run programs at a facility
each day of the week. The equipment package includes the TGA Kit of Junior Golf
Clubs, chipping baskets, goalposts, accelerators, putting mats and tees, golf
balls with our Proprietary Marks affixed, a backyard driving range, a high
roller travel cover, hitting mats and other related equipment, 4 coaches hats
and 4 coaches'' shirts. We will provide you with one Initial Equipment Package
at no cost. Please see Item 11 for further detail.
4/ This estimate covers the
annual costs for required coverage. The cost of insurance will vary based on
the type of insurance, the limits you select, the number of students that you
estimate will attend your Total Golf Adventures Proprietary Programs and other
factors affecting risk exposure.
002 UFDD
5/ Training is described in
Item 11 in the Disclosure Document. There is no charge for your 2-3 day Total
Golf Adventures Initial Training Program. If we determine that additional
training is necessary after the Total Golf Adventures Initial Training Program,
we will provide the additional training at $150 per trainee per day plus our
reasonable transportation or living expenses. If you request us to provide our
Total Golf Adventures Initial Training Program to any additional trainees, we
will charge you a $150 daily fee for each additional trainee plus our
reasonable transportation or living expenses. We will train you in your
Territory so you should not have any transportation or living expenses to pay
while you attend training.
6/ This estimate covers
stationary printing, general office supplies, a DSL Line, printing costs for
flyers and TGA''s 2 Hole Teaching Aid� and advertising costs for coaches and
directors. Your actual costs depend upon the quantity of printed materials you
purchase and the number of Total Golf Adventures Proprietary Programs you sell
during the first 3 months you are in business. We will provide you with a
stationary package consisting of 500 business cards, 500 sheets of letterhead
and 500 envelopes at no charge.
7/ During the 3 months
following your purchase of your Franchised Business, you will need capital to
support ongoing expenses if these costs are not covered by Gross Revenue. No
amount has been included for an owner''s salary or draw. You may need additional
funds for personal living expenses. The need for additional funds will vary
widely among Total Golf Adventures franchisees.
8/ We do not require you to
lease or rent an office for the Franchised Business and you may operate the
Franchised Business from your home. However, if you cannot or do not wish to
operate your Franchised Business from your home, your office space must be at
least 500 square feet in area, and we must approve the location, layout and
furnishings. The factors we take into account in considering a site for your
office are the general location and neighborhood, the quality of the building,
access, adequate parking, and the lease terms. We are not able to adequately
estimate lease or rental amounts at this time, as they may vary from location
to location, depending on the size of your office and the geographical location
of the office.
9/������ The Development
Fee is described in Item 5 of the Disclosure Document.
10/ The Chart, together with
its footnotes, estimates your initial investment for the Franchised Business.
These expenditures will vary depending on factors such as the size and location
of your Territory, your financial condition and the business decisions you
make. Therefore, there can be no assurance that your experience will correspond
with the information in the Chart
We relied upon the experience
of TGA in operating and licensing Total Golf Adventures businesses when
preparing the Chart
