What is the total estimated range of expenses for opening 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 includes various expenditures that a new franchisee will incur before starting operations. These expenses cover a variety of essential components required to launch the business.
The initial investment includes a $44,000 Initial Franchise Fee (IFF) and a $127,000 Opening Package. Additionally, franchisees must budget for the BOR Software ($3,999) and other Technology ($2,995). There are also variable costs such as Rent and Rental Improvements, and Office Furniture, Fixtures, and Equipment, each estimated between $0 to $300. Microsoft Office 365 and Constant Contact are listed at $174. Initial Training Expenses range from $1,000 to $2,500, while the Business Vehicle and Wrap can cost between $1,000 and $35,000. Business Vehicle Tax, Title, and License are estimated between $0 and $1,500, and Business Vehicle Insurance ranges from $500 to $1,000. A Grand Opening Cost of $500 is also included.
Furthermore, the initial investment includes Insurance and Professional Services, estimated between $4,750 and $5,200. Bor Restoration also advises franchisees to have Additional Funds of $9,000 to $15,000 available for the first three months of operation. These additional funds are intended to cover personal expenses as needed during the initial ramp-up phase of the business. It is important to note that these figures do not include an owner's salary or draw.
Prospective franchisees should carefully review these figures with a business advisor to fully understand the financial commitment involved in opening a Bor Restoration franchise. The FDD advises that the additional funds required can vary based on the franchisee's management skills, sales effectiveness, local economic conditions, market demand, competition, and sales levels achieved in the exclusive territory. Therefore, thorough due diligence and realistic financial planning are essential before making a final decision.