What is the range of the estimated initial investment for an All States M.E.D. franchise?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
A. FRANCHISE AGREEMENT
| Type of Expenditure | Method of Payment | When Due | To Whom Payment is to be Made | |||
|---|---|---|---|---|---|---|
| Low | High | |||||
| Initial Franchise Fee1 | $100,000 | $100,000 | As arranged | Upon signing your Franchise Agreement | To us | |
| Traveling and Living | $2,000 | $3,000 | As arranged | As incurred | Third parties | |
| Expenses while Training2 | ||||||
| Real Property Rent | $3,000 | $8,000 | As arranged | As incurred | To your landlord | |
| Deposits and Pre-Paid | ||||||
| Expenses3 | ||||||
| Construction of Leasehold | $1,000 | $5,000 | As arranged | As incurred | Contractors | |
| Improvements4 | ||||||
| Furniture and Fixtures5 | $3,500 | $7,500 | As arranged | As incurred | Third parties | |
| Equipment6 | $20,000 | $30,000 | As arranged | As incurred | Third parties | |
| Computer Hardware and | $4,000 | $6,500 | As arranged | As incurred | Third parties | |
| Software7 | ||||||
| Office Supplies8 | $1,000 | $2,500 | As arranged | As incurred | Third parties | |
| Uniforms9 | $500 | $1,500 | As arranged | As incurred | Third parties | |
| Signage10 | $2,000 | $5,000 | As arranged | As incurred | Third parties | |
| High-Ceiling Van with | $5,000 | $10,000 | As arranged | As incurred | Third parties | |
| Liftgate11 | ||||||
| Grand Opening | $3,000 | $10,000 | As arranged | As incurred | Third parties | |
| Advertising12 | ||||||
| Business Licenses and | $500 | $1,500 | As arranged | As incurred | Third parties | |
| Permits13 | ||||||
| Insurance (3 Months)14 | $500 | $1,500 | As arranged | As incurred | Insurance company | |
| Professional Fees15 | $2,500 | $3,500 | As arranged | As incurred | Attorneys/accountants | |
| Additional Funds | $40,000 | $60,000 | As arranged | As incurred | Employees, suppliers, | |
| (3 months)16 | utilities, lessors, etc. | |||||
| Total17 | $188,500 | $255,500 | # NOTES: |
1 Initial Franchise Fee- The Initial Franchise Fee shown in the table above is for a single territory. All fees payable to us in the above table are non-refundable. Whether fees paid to third parties are refundable would depend on their policies.
2Travel and Living Expenses While Training- We will train you (or your managing owner) and two of your manager-level employees. Additional persons attending training concurrently may attend initial training if you pay our then current training charge for each additional person.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–18)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, the estimated initial investment to open a franchise ranges from $188,500 to $255,500 for a single territory under the Franchise Agreement. This includes expenses such as the initial franchise fee of $100,000, travel and living expenses while training which range from $2,000 to $3,000, real property rent deposits and pre-paid expenses ranging from $3,000 to $8,000, and construction of leasehold improvements ranging from $1,000 to $5,000.
Additional costs factored into the total include furniture and fixtures which range from $3,500 to $7,500, equipment ranging from $20,000 to $30,000, computer hardware and software ranging from $4,000 to $6,500, office supplies ranging from $1,000 to $2,500, uniforms ranging from $500 to $1,500, signage ranging from $2,000 to $5,000, and a high-ceiling van with liftgate ranging from $5,000 to $10,000. Franchisees must also budget for grand opening advertising which ranges from $3,000 to $10,000, business licenses and permits ranging from $500 to $1,500, insurance (for 3 months) ranging from $500 to $1,500, and professional fees ranging from $2,500 to $3,500. An estimated $40,000 to $60,000 is also recommended for additional funds to cover the first 3 months of operation.
For an Area Development Agreement, which allows the franchisee to open three to five territories, the initial investment ranges from $288,500 to $455,500. This includes an Area Development Fee of $200,000 to $300,000, plus the initial investment for the first franchised business, which ranges from $88,500 to $155,500. The Area Development Fee covers the initial franchise fee for the first territory and half of the initial franchise fees for additional territories. The remaining half of the initial franchise fee for additional territories is due when entering into franchise agreements for those territories.
Prospective franchisees should note that these are only estimates, and actual costs may vary. All fees payable to All States M.E.D. are non-refundable, while the refundability of fees paid to third parties depends on their individual policies. All States M.E.D. does not offer direct or indirect financing for any part of the initial investment.