What is the range for the estimated initial investment for a Bor Restoration franchise?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Expenditure | Amount | Method of | When Due | To Whom Payment is to be |
|---|---|---|---|---|
| (Note 1) | Payment | Made | ||
| IFF | $44,000 | Lump sum | At the signing of Franchise Agreement. | Us |
| Opening Package | $127,000 | Lump-sum | At the signing of the Franchise Agreement. | An Approved Vendor, An Affiliate, or Us. |
| BOR Software | $3,999 | Lump-sum | At the signing of the Franchise Agreement. | Us. |
| Technology | $2,995 | Lump-sum | At the signing of the Franchise Agreement. | Us. |
| Startup Fee | ||||
| Rent and Rental | $0 to $300 | As incurred | Before opening. | Landlord. |
| Improvements | ||||
| (Note 2) | ||||
| Office Furniture, | $0 to $300 | As incurred | Before opening. | Vendors. |
| Fixtures, and | ||||
| Equipment (Note | ||||
| 2) | ||||
| Microsoft Office | $174 | As incurred | Before opening. | Approved Vendor. |
| 365 and Constant | ||||
| Contact (Note 3) | ||||
| Initial Training Expenses (Note 4) | $1,000 to $2,500 | As incurred | Before training. | Airlines, Hotels, Restaurants. |
| Business Vehicle and Wrap (Note 5) | $1,000 to $35,000 | As incurred | Before opening. | Vendor. |
| Business Vehicle | $0 to $1,500 | As incurred | Before opening. | State or Local Government. |
| Tax, Title, and | ||||
| License (Note 5) | ||||
| Business Vehicle | $500 to $1,000 | As incurred | Before opening. | Insurer. |
| Insurance (Note 5) | ||||
| Grand Opening Cost (Note 6) | $500 | As incurred | Before opening. | Advertiser. |
| Insurance and | $4,750 to $5,200 | As incurred | When incurred. | Professionals. |
| Professional | ||||
| Services (Note 7) | ||||
| Additional Funds - 3 months (Note 8) | $9,000 to $15,000 | As incurred | When incurred. | Used for your personal expenses as needed. |
| TOTAL (Note 9) | $194,918 to $239 |
Source: Item 7 — (FDD pages 15–18)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the estimated total initial investment to open a franchise ranges from $194,918 to $239,468. This total encompasses various expenditures, with the largest single items being the initial franchise fee (IFF) of $44,000 and the opening package costing $127,000. These two items alone account for a significant portion of the initial investment. Other notable expenses include the BOR software ($3,999) and technology ($2,995). These fees are payable in a lump sum at the signing of the Franchise Agreement.
Additional costs contribute to the overall initial investment. These include rent and rental improvements, office furniture, Microsoft 365 and Constant Contact subscriptions, initial training expenses, a business vehicle and wrap, vehicle tax, title, and license fees, vehicle insurance, grand opening costs, insurance and professional services, and additional funds for the first three months of operation. These costs vary, for example, the business vehicle and wrap could range from $1,000 to $35,000, while additional funds for the first three months range from $9,000 to $15,000.
Prospective Bor Restoration franchisees should note that these figures are estimates. The document advises careful review of these figures with a business advisor before making any decision. Factors such as location, choice of vendors, and specific needs can influence the final amount. Furthermore, the estimate of additional funds does not include an owner's salary or draw, which franchisees will need to consider separately. The FDD also states that Bor Restoration does not offer direct or indirect financing to franchisees for any items.