ITEM 7:
ESTIMATED
INITIAL INVESTMENT
Except as otherwise described in the notes below, the
following table provides an estimate of your initial investment and the costs
necessary to begin operating under the Franchise Agreement for a Unlimited
MedSearch Business. Actual costs will vary for each franchise depending on a
number of factors, including market condition, the geographic location of your
Business and your personal business experience. All fees and payments are
nonrefundable unless set forth herein.
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DESCRIPTION
^O^^Iir^El;
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ESTIMATED |f COST LOW
|
ESTIMATED
COST HIGH
|
METHOD
OF
PAYMENT
|
WHEN DUE
|
TO
WHOM PAID
|
|
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Initial Franchise Fee1
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$54,500
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$54,500
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Lump sum
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At signing of the Franchise Agreement
|
Us
|
|
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Leasehold
Improvements3
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$0
|
$2,000
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As incurred
|
As
incurred
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Contractor(s)
|
|
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Office Furniture4
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$750
|
$1,100
|
As incurred
|
As
incurred
|
Third-party
supplier(s)
|
|
|
|
^ESTIMATED |C�ST;LOW
|
ESTIMATED
COST HIGH
|
METHOD
'' |OE � PAYMENT
|
WHEN DUE
|
TO WHOM/
|
|
Office Supplies and
Equipment5
|
$600
|
$900
|
As
incurred
|
Upon
negotiated terms
|
Third-party supplier(s)
|
|
Computer System6
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$2,000
|
$3,000
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As
incurred
|
As
incurred
|
Third-party supplier(s)
|
|
Promotional
Materials7
|
$500
|
$1,500
|
Lump sum
|
Before beginning operation of the Business
|
Third-party
supplier(s)
|
|
Initial Local Advertising8
|
$0
|
$0
|
n/a
|
n/a
|
n/a
|
|
Contractors License, Permits and
other Licenses9
|
$500
|
$3,000
|
As
incurred
|
As
incurred
|
Governmenta
I authorities
|
|
Training Expenses10
|
$2,500
|
$3,500
|
As
incurred
|
As
incurred
|
Hotels,
restaurants,
etc.
|
|
Prepaid
Insurance
Premium11
|
$300
|
$1,500
|
Lump sum
|
As
incurred
|
Insurance carrier/broker
|
|
Telephones, Internet, Merchant Fees12
|
$500
|
$2,000
|
Lump sum
|
As
incurred
|
Utility and telephone companies
|
|
Legal
Costs13
|
$1,000
|
$2,000
|
As
incurred
|
As
incurred
|
Attorneys and
government
authorities
|
|
Website Development Fee-Optional14
|
$500
|
$500
|
Lump Sum
|
Before opening
|
Third Party Supplier(s)
|
|
Working Capital (Cashr
|
$20,000
|
$20,000
|
Lump Sum
|
Before beginning operation of the Business
|
Your bank account
|
|
TOTAL COSTS16
|
$94,150
|
$107,500
|
|
|
|
|
|
|
|
|
|
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Note 1. See Item 5 of this
Offering Circular for a description of the initial fee. Note 2. Intentionally Left Blank.
Note 3. The range in this
category reflects an estimate for layout and construction build-out costs for a
complete Unlimited MedSearch Business. Your cost for leasehold improvements
will vary depending upon the size of your Business premises and its geographic
location. If you are converting an existing facility into an Unlimited
MedSearch Business, your costs may be higher or lower depending on the useable
assets, fixtures and conversion costs. Construction costs in some areas of the
country may exceed these estimates.
Note 4. The range in this
category reflects an estimate for the cost of purchasing furniture for your
Business.
Note 5. The range in this
category reflects the estimated cost of purchasing equipment, including office
supplies, and other office equipment to begin Business operations.
Note 6. You must purchase a
computer system from a supplier of your choice before opening your Business.
The computer system must include the hardware and software necessary to operate
your Business and manage the sales, recruiting and servicing areas of your
Business. A lap top computer is recommended.
Note 7. Before you begin
operating your Business, you will order promotional products for use in your
Business, such as labels, pens and other supplies with the Unlimited MedSearch
logo printed on them.
Note 8. Your Initial Local
Advertising costs will depend on the media available in your local market and
the rates charged for advertising in the available media. Although there is no
required spending requirement for Initial Local Advertising, it is suggested
that you consider initial local advertising if your Business plan suggests it.
Note 9. The cost of permits
and licenses will depend upon the fees charged by your local municipality,
county, state and licensing authority.
Note 10. Our estimate includes
lodging accommodations and dining expenses for one person. Our estimate does
not include expenses associated with traveling to our headquarters for offsite,
classroom training. Your travel expenses, if any, will depend upon the distance
of travel, mode of transportation, and the time of year in which your training
occurs.
Note 11. Business insurance
coverage will vary from state to state and will depend upon your prior loss
experience, if any, and/or the prior loss experience of your insurance carrier
in the state or locale in which you operate the Business, and national or local
market conditions. Insurance carriers and brokers typically require a down
payment equal to one quarter of the annual insurance payment and monthly
payments of the remaining balance. Although you are permitted to operate your
Business from your primary residence, you may consider leasing or purchasing a
commercial site to operate from. It is estimated that you will need
approximately 400 sq. feet to operate the business as an independent recruiter
with no employees or staff. Costs will increase as your staffing commitments
increase and will also vary depending on available space and other factors. See
Item 8 of this Offering Circular for more information on insurance
requirements.
Note 12. The range in this
category reflects our estimates for telephone, Internet access services and
merchant fees and equipment setup. We will require that you use the vendor of
our choice for merchant, internet, wireless computer, and cellular telephone
services.
Note 13. You may operate the
Business as an individual, or you may transfer the Franchise Agreement to an
entity. If you elect to operate the Business through an entity, we estimate
this will be your legal fees and state filing fees relating to forming the
entity.
Note 14. We have established a
Website to promote the franchise Business and will also advertise the sale of
franchises but not use any money from the Fund for franchise sales. See Item 11 of this
Offering Circular for additional information about our Website. You may not
establish or maintain any Website or engage in any other electronic marketing
of products or services without our prior written approval, which we will not
unreasonably refuse.
Note 15. You must have a
minimum of $20,000 on hand before your Business''s opening to be used as working
capital and to cover initial operating expenses, including payroll. This figure
is for an owner-operated Business with no owner''s draw or salary. We cannot
guarantee that you will not have additional expenses starting and operating
your business. Your costs will depend on such factors as the extent to which
you follow our methods and procedures, your management skill, experience and
business acumen, local economic conditions, the local market for the Service,
the prevailing wage rate, competition and the sales level reached during the
initial period and occupancy costs for your Business. You must provide
verification of available cash on hand by means of a bank statement or other
similar documentation that meets our satisfaction.
Note 16. We have relied on the
experience of the Business owned by UNS to complete these estimates. You should review these figures carefully with a business
advisor before making any decision to purchase the franchise.