1.
You must pay an initial
franchise fee of $59,900 for one Area of Primary Responsibility containing at
least 30,000 households; except if you qualify for the Small Market Franchise
Fee (see Item 5), the fee is $^39.900 for an Area of Primary
Responsibility containing at least 12,000 households, plus the then-current fee
for each household in excess of 15,000 in your Area. If you are not in default
under your Franchise Agreement, if Additional Areas are available, and if V2K.
approves, you may purchase one or more Additional Areas for the then-current
fee, which fee will be less than the then-current initial franchise fee. As of
the date of this ^Disclosure Document, the current fee for each
Additional Area is $1.05 per household in the Area; but this fee may be changed
by V2K at any time. V2K. does not finance any fee.
2.
If
you do not presently own or rent a retail outlet, you are not required to do
so. V2K anticipates that most franchisees will operate the franchise from their
residence. If you desire to rent a retail outlet, your rent will vary,
depending on factors such as size, condition and location of the leased
premises.
3.
Your
expenses vary based on whether you have one or two persons attend Basic
Training. The low amount is based on one person attending training. The high
amount is based on two people attending training. See Item 11.
4.
A
laptop computer, portable printer, carrying case, software, product samples,
and initial marketing supplies are included within your franchise fee. See Item
11. The estimated expense is for additional necessary equipment, which includes
a facsimile machine with scanner and copy machine capability, answering machine
and/or answering service, Master Card/Visa processing service, and items listed
in the V2K. Policy & Procedures Manual and other Manuals. The lower
estimated expense assumes you purchase used equipment. Your purchase and use of
Magnetic car signs may be required by V2K in the future, and the estimated cost
is not expected to exceed $200.00. As of the date of this ^Disclosure
Document, no additional necessary equipment is listed in the V2K Policy
& Procedure Manual.
5.
Includes
security deposits, utility costs, telephone lines, business entity filing fees,
legal and accounting fees, and insurance.
6.
Free
initial product samples and home product sample binders are included with your
franchise fee, subject to availability. You are not required to have an opening
inventory, but you may be required to purchase updates of the samples. See Item
8.
7.
See
Hem 6 for information about the amount of this fee.
8.
This
amount includes your required start-up capital, including payroll costs. V2K
cannot guarantee that you will not incur additional expenses in starting the
business. Your costs will depend on factors such as: your management skill,
experience and business acumen, local economic conditions, the local market for
our product, the prevailing wage rate, competition, the amount of marketing and
advertising you undertake, and the sales level reached during the initial
period.
9.
All
of these costs are estimated, except for the Initial Franchise Fee. V2K. relied
on its principals'' 30 years of accumulative experience in the window treatment
business to compile these estimates. You should review these figures carefully
with a business advisor before making any decision to purchase the franchise.
10.
V2K
does not offer direct or indirect financing to franchisees. These costs do not
include the costs of real estate or improvements, which vary substantially from
location to location. See Note 2 above.
11. The initial franchise
fee is non-re fundable, except in limited circumstances. See Item 5. Otherwise,
none of
the payments to us. if anvT are refundable. Payments
to other parties mav be refundable in certain circumstances, depending on
your agreement with those other parties: however, typically the payments
to other parties are non-refundable.
