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UNLIMITED MEDSEARCH - FDD UFOC ITEM 7 Detail

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.

 

DESCRIPTION

^O^^Iir^El;

ESTIMATED |f COST LOW

ESTIMATED COST HIGH

METHOD

OF PAYMENT

WHEN DUE

TO WHOM PAID

 

Initial Franchise Fee1

$54,500

$54,500

Lump sum

At signing of the Franchise Agreement

Us

 

Leasehold Improvements3

$0

$2,000

As incurred

As incurred

Contractor(s)

 

Office Furniture4

$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

$2,000

$3,000

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

 

 

 

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.

 

 





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