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VAGABOND INN - FDD UFOC ITEM 7 Detail
ITEM
7
ESTIMATED INITIAL
INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT Conversion Franchises
Your estimated initial investment (not including
acquisition costs or tho coot of the existing hotel
facility) to renovate an existing hotol to moot our standards follows.
|
CategorvTvne of Expenditure
|
Amount1
|
Method of Payment
|
When
Due
|
To Whom Payment isIs^To-Bfi Made
|
|
|
Application Fee
|
$1,500
|
Lump Sum
|
With completed
application
|
Us
|
|
|
Initial Franchise Fee2
|
$20,000
|
Lump Sum
|
When you sign
the franchise agreement
|
Us
|
|
|
Facility Improvements
|
$30,000- 120,000
|
As incurred
|
Before opening
|
Suppliers you select
|
|
|
Furniture,
Fixtures & Equipment
|
$32,000 - 80,000
|
As incurred
|
Before opening
|
Suppliers you select
|
|
|
Signage
|
$5,000 - 30,000
|
As incurred
|
Before opening
|
Suppliers you select
|
|
|
Legal Fees
|
$3,250- 16,250
|
As incurred
|
Before opening
|
Attorneys you select
|
|
|
Opening Inventory &
Supplies
|
$4,000 - 6,500
|
As incurred
|
Before opening
|
Suppliers you select
|
|
|
Pre-Opening Advertising
|
$3,000- 10,000
|
As incurred
|
Before opening
|
Advertising
media you select
|
|
|
Hardware
Components for Property Management System
|
$2,000- 10,000
|
As incurred
|
Before opening
|
Suppliers you select and we
approve
|
|
|
Property
Management Software License, Hardware Installation, and On-Site Training
|
$2,500 + our out-of-pocket
travel costs
|
Lump Sum
|
Initial fee payable before
we schedule installation, costs are payable by the 1st day of the
month after invoice
|
Us
|
|
|
Initial Training2,3
|
$0 - 700
|
As incurred
|
Before opening
|
Us
|
|
|
Travel,
Lodging & Meals (during initial training)
|
$200 - 2,000
|
As incurred
|
Before opening
|
Suppliers you select
|
|
|
Insurance4
|
$8,000- 14,000
|
As incurred
|
Before opening
|
Insurance broker or carrier
vou select
|
|
|
CategoryIyu�-Ql'' Expenditure
|
Amount1
|
Method of Payment
|
When Due
|
To Whom Payment 4sIsJTo-B� Made
|
|
Working Capital Required
Before Operations Begin
|
$10,000-25,000
|
As incurred
|
Before opening
|
Us, your suppliers, your
employees
|
|
Additional Funds for Initial
3 Month Period5
|
$40,000- 75,000
|
As incurred
|
Before opening
|
Us, your suppliers, your
employees
|
|
TOTAL ESTIMATED
INITIAL
INVESTMENT
|
$161,450 -$413,450 (+ any
cost of acquiring existing building)
|
|
|
|
|
TOTAL ESTIMATED COST PER
ROOM
|
$2,484 - $6,360 (plus cost of acquiring existing
building)
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1: We base our estimates
on a hotel containing 65 sleeping rooms. The average number of sleeping rooms
in the existing vagabond inn hotels on December 31,20062007
was ?&r8fl. Your actual costs may fall outside the estimated ranges. These
estimated initial expenses may be materially affected by unusually high,
locally imposed, development fees, condition of the hotel, amount of renovation
required, and other factors.
Note 2: These fees are
described in Item 5. A portion of the application fee is refundable under the
circumstances described in Item 5. We may occasionally negotiate certain terms
of the agreement when business circumstances warrant.
Note 3: You may choose to have
a 2nd person attend initial training at the same time for an
additional $200 fee. We will waive the initial training fee for any attendee
who completes initial training within 45 days after your hotel opens, but we
prefer that the person responsible for day-to-day operations complete initial
training before your hotel opens.
Note 4: You must obtain
insurance limits as stated in the franchise agreement. This estimate is for
general liability only and does not include workers'' compensation, disability
and other employee benefits you may have to acquire for your employees.
Note 5: We base these
estimates on the experience of our officers, on the experience of RPD Hotels
and its predecessors, and on industry reports for competitive hotel brands.
New Construction
Your estimated initial
investment (not inoluding land costs) required to
construct and opon a new construction Vagadond Inn or Vagabond Inn Executive hotel, containing 100 rooms,
to meet our standards follows.
|
CatcgorvTvpe of Expenditure
|
Amount1
|
Method of Payment
|
When Due
|
To Whom Payment isIs_Io. lk Made
|
|
|
Application Fee
|
$1,500
|
Lump Sum
|
When you submit the
completed application
|
Us
|
|
|
Initial Franchise Fee2
|
$20,000
|
Lump Sum
|
When you sign
the franchise agreement
|
Us
|
|
|
CategoryJ^d&M Exnenditure
|
Amount1
|
Method of Payment
|
When Due
|
To Whom Pavment isls To Be Made
|
|
Market Study
|
$5,000 - 7,500
|
Lump Sum
|
Before construction
|
Supplier you select
|
|
Phase I
Environmental Study
|
$3,000 - 6,000
|
Lump Sum
|
Before land acquisition
|
Supplier you select
|
|
Design and Testing Fees
|
$20,000 - 70,000
|
Lump Sum
|
Before,
during and after construction
|
Supplier you select
|
|
Facility Construction
|
$3,000,000-5,000,000
|
As incurred
|
Before opening
|
Suppliers you
select
|
|
Furniture, Fixtures and
Equipment
|
$700,000
-1,600,000
|
As incurred
|
Before opening
|
Suppliers you
select
|
|
Signage
|
$10,000-50,000
|
As incurred
|
Before opening
|
Suppliers you
select
|
|
Hardware Components for
Property Management System
|
$4,000 - 20,000
|
As incurred
|
Before opening
|
Suppliers you
select and we approve
|
|
Property Management Software
License, Hardware Installation, and On-Site Training
|
$2,500 + our out-of-pocket travel costs
|
Lump Sum
|
Initial fee payable before we schedule installation;
costs are payable by the 1st day of the month after invoice
|
Us
|
|
Initial Training2''J
|
$0 - 700
|
As incurred
|
Before opening
|
Us
|
|
Travel, Lodging and Meals
(during initial training)
|
$100-2,000
|
As incurred
|
Before opening
|
Suppliers you select
|
|
Opening Inventory and
Supplies
|
$25,000-35,000
|
As incurred
|
Before opening
|
Suppliers you
select
|
|
Insurance4
|
$15,000-25,000
|
As incurred
|
Before opening
|
Insurance
broker or carrier you select
|
|
Working Capital Required
Before Operations Begin
|
$40,000-75,000
|
As incurred
|
Before opening
|
Us, your suppliers, your
employees
|
|
Additional Funds for Initial
3 Month Period5
|
$50,000- 80,000
|
As incurred
|
Before opening
|
Us, your
suppliers, your employees
|
|
TOTAL ESTIMATED
INITIAL
INVESTMENT
|
$3,896,300
-$6,995,200 (+ any real estate cost6)
|
|
|
|
|
TOTAL ESTIMATED COST PER ROOM
|
$38,963 -$69,952 (+ real
estate cost6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1: We base our estimates
on a new construction hotel containing 100 sleeping rooms. The average number
of sleeping rooms in the existing Vagabond
Inn hotels
on December 31, 20062002 was ?S?Sfl.
Your
actual costs may fall outside the estimated ranges stated below. These
estimated initial expenses may be materially affected by unusually high,
locally imposed, development fees and other factors.
Note 2: These fees are
described in Item 5. A portion of the application fee is refundable under the
circumstances described in
Item 5. We may occasionally negotiate certain terms of the agreement when
business circumstances warrant.
Note 3: You may choose to have
a 2nd person attend initial training at the same time for an
additional $200 fee. We will waive the initial training fee for any attendee
who completes initial training after your hotel opens, but we prefer that the
person responsible for the day-to-day operations complete initial training
before your hotel opens.
Note 4: You must obtain
insurance limits as stated in the franchise agreement. This estimate is for
general liability only and does not include workers'' compensation, disability
and other employee benefits you may have to acquire for your employees.
Note 5: We base these
estimates on the experience of our officers, on the experience of RPD Hotels
and its predecessors, and on industry reports for competitive hotel brands.
Note 6: Real estate costs vary
considerably. A 100 room, 3-story vagabond
inn new
construction hotel needs about 2 acres with adequate parking, depending on
local requirements. Your land costs depend on land prices in the area where the
hotel will be built and on the desirability of the site you select. Frontage on
major roads and proximity to interstate highways or transportation centers used
by potential customers are desirable.
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Franchise Categories
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Franchises
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Vagabond Inn
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VAGABOND INN FDD & UFOC Data
-
VAGABOND INN FDD & UFOC ITEM 7
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