ESTIMATED
INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT
|
Type of Expenditure
|
Amount
|
Method of Payment
|
When
Due
|
To Whom Payment Is To Be Made
|
|
Initial Franchise License Fee
|
$ 23,000
|
Lump Sum
|
At Signing of Franchise
Agreement
|
WBCA
|
|
Initial Training Fee
|
2,000
|
Lump Sum
|
At Signing of Franchise
Agreement
|
WBCA
|
|
Opening Inventory
|
32,000 - 42,000
|
As
Incurred
|
Prior to Opening
|
Approved Suppliers
|
|
Real Estate and Improvements
(Note 1 )
|
|
As
Incurred
|
Prior to Opening
|
Independent Vendors
|
|
Store Interior Fit-up,
including Design Fees (Note 2)
|
19,000-37,500
|
As
Incurred
|
Prior to Opening
|
Approved
Suppliers and Professionals
|
|
Signage
|
2,000 - 6,000
|
As
Incurred
|
Prior to Opening
|
Independent Vendors
|
|
Office Supplies
|
500
|
As
Incurred
|
Prior to Opening
|
Independent Vendors
|
|
Opening
Advertising -3 Months
|
2,000 - 4,000
|
As
Incurred
|
As Incurred
|
Independent Vendors
|
|
Licenses
|
200 - 500
|
As
Incurred
|
Prior to Opening
|
Governmental Agencies
|
|
Legal
and Accounting Fees (including Organizational Expenses)
|
750 - 2,500
|
As
Incurred
|
Prior to Opening
|
Independent Professionals
|
|
Computer System and Electronic Credit Card System
(Note 3)
|
7,500 - 9,500
|
As
Incurred
|
Prior to Opening
|
Approved Suppliers and
Independent Vendors
|
|
Telephone System
|
300 - 500
|
As
Incurred
|
Prior to Opening
|
Independent Vendors
|
|
FAX Machine (Note 4)
|
150-300
|
As
Incurred
|
Prior to Opening
|
Independent Vendors
|
|
Insurance Premiums - 3 months
|
250- 1,000
|
As
Incurred
|
Prior to Opening
|
Insurance Company
|
|
Utility Deposits
|
250-500
|
As
Incurred
|
Prior to Opening
|
Public Utilities
|
|
Travel
and Living Expenses While Training
|
1,000- 1,500
|
As
Incurred
|
During Training
|
Airlines, Hotels, Car Rental Companies and
Restaurants
|
|
Miscellaneous Openings Costs
|
1,000-3,000
|
As
Incurred
|
As Incurred
|
Various
|
|
Additional Funds -3 Months (Note 5)
|
3,000-15,000
|
As
Incurred
|
As Incurred
|
Landlord, Utilities, etc.
|
|
TOTAL (Notes 6, 7)
|
94,900 -149,300
|
|
|
|
Notes: (1) You must lease or
purchase the site for your Wild Bird Center. The typical Wild Bird Center has approximately 1,200 to 2,000 total square feet and is located in a high-traffic
commercial area. Rent is estimated to be between $18,000.00 and $60,000.00 per
year, depending on factors such as location, size and condition of the leased
premises.
(2)
This
estimate includes improvements to the store premises which your landlord may
require you to construct, as well as the store interior fit-up we require.
(3)
You
are required to purchase a point-of-sale computer system, including an
integrated retail operations software package specified by us and a computer
that meets our specifications. (See Item 11). You are required to purchase a
point-of-sale integrated electronic credit card processing system specified by
us. (See Item 8). You must acquire and maintain an e-mail system, capable of
receiving large document and graphic attachments and available for receipt of
incoming messages 24 hours per day, 7 days a week, and read new messages on
such e-mail system at least 5 days each week. Your e-mail service must be
provided by an Internet service provider approved by us. You may not use America
Online or affiliated e-mail programs. You must use our email reflector program
and publish your assigned email address on all printed and electronic
publications and materials.
(4)
You
are required to have a telefax (FAX) machine for communications to and from us.
Your telefax machine must be operational 24 hours per day, 7 days a week.
(5)
This
estimates your initial start up expenses. These figures do not include payroll
costs, because it is assumed that you will not have any employees during the
start-up period. Your salary is not included. These figures are estimates and
we cannot guarantee that you will not have additional expenses starting your Wild Bird Center business. Your costs will depend on factors such as: how much you follow
our methods and procedures; your management skill, experience and business
acumen; local economic conditions; the local market for Wild Bird Centers''
products; competition; and the sales level reached during the initial period.
(6)
We
have relied on our 22 years of experience in the wild bird specialty retail
business to compile these estimates. You should review these estimates
carefully with a business advisor before deciding to purchase a Wild Bird Center franchise.
(7)
All
payments are non-refundable.
(8)
We
do not offer direct or indirect financing to franchisees for any items. The
availability and terms of financing will depend on factors such as the
availability of financing generally, your creditworthiness, collateral you may
have and lending policies of financial institutions from which you may request
a loan. The estimate does not include any finance charge, interest or debt
service obligation.
(9)
We
reserve the right to require you to deposit money into an escrow account that
we control, and use that money to purchase fixtures, computer and other
equipment, and inventory for you. We will make a profit on those purchases.
(See Item 8).
