|
DESCR1PTIONTY PEOF EXPENDITURE
|
ESTIMATED AMOUNT
|
METHOD OF PAYMENT
|
WHEN DUE
|
TO WHOM PAYMENT IS TO BE MADE
|
|
Additional Funds-3 months7
|
&WOS200 -$300
|
As Arranged
|
As Required
|
Third Parties
|
|
TOTAL8
|
$2,307.4 1 $32.850$2,S19
.66- $34,400
|
|
|
|
--------- Note 1: The amount
of the initial fee depends on the volume of the package you purchase.
See
Item 5 and Exhibit C.
Note 2: This range represents
the down payment and first three installments if you finance the initial fee
from the smallest to the largest volume package available�. (Refer to Item 10
for loan terms and other financing information)
Note 3: Equipment is provided
by Vanguard as part of your franchise package sufficient for you to service the
accounts Vanguard will provide. The estimate for equipment is the initial cost
to purchase/lease a pagercellular phone or other portable electronic device for
mobile communication if you do not already have a cell phone or pager service.
Note 4: Vanguard provides your
initial supply of cleaning chemicals and miscellaneous business supplies as
part of your franchise package.
Note 5: You must have all
required business licenses before Vanguard will provide accounts.
Note 6: You must purchase
liability insurance and bonding coverage. The amount given is the estimate of
payments due in the first 3 months of operation. Insurance industry rates can
change and you would need to pay more for coverage if they do. You will also
need worker''s compensation coverage if you have employees, although most
franchisees do not hire employees in the first 3 months of operation and
thereafter only as volume of accounts requires. You must also maintain vehicle
liability insurance. No amount is included for that because most franchisees
already own their vehicle and are required by law to maintain liability
coverage.
Note 7: Additional funds are
the estimated amounts you will need for the expenses of operation during the
initial phase of the business which is 3 months after commencing operation.
These expenses will be mainly for transportation (gas and vehicle maintenance)
from your home to your accounts. This estimate does not include any wages as
most franchisees do not hire employees before the first 3 months of operation.
It also does not include your draw or salary, which is at your own discretion.
Additional funds were estimated on the basis of Vanguard''s experience over the
past 12 years, including knowledge gathered from field experience with
franchisees, and Vanguard''s general knowledge of the industry.
Note 8: Start-up costs do not
include real estate because franchisees need not acquire or lease additional
space. Most franchisees operate from their homes. Most franchisees have an
existing means of transportation sufficient to operate the business, so no
vehicle costs are included. Since franchisees live within driving distance of
the training center, no travel or lodging expenses
Unit FDD CA-2008 9
during training are provided,
although you may incur some minimal additional commuting expenses, depending on
where you live.
Vanguard does not offer,
either directly or indirectly, financing to its franchisees for any of the
above items except the initial franchise fee. All amounts paid to Vanguard are
nonrefundable except as described in Item 5. Typically, amounts paid to third
parties will not be refundable unless otherwise agreed.
