What is the expectation of Care Plus Medical Ucc regarding the franchisee renting a location?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
ial investment.
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- Our estimates in this table assume you pay one month rent plus a security deposit before you open for business. For this to occur, you would need to negotiate a "free rent" period for the time it takes to build out your business. We expect that you will rent your location. If you choose to purchase real estate instead of renting, your costs will be significantly different.
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- This includes any other required expenses you will incur before operations begin and during the initial period of operations, such as payroll, additional inventory, rent, and other operating expenses in excess of income generated by the business. It does not include any salary or compensation for you. In formulating the amount required for additional funds, we relied on the following factors, basis, and experience: the development of a Care Plus Medical business by our affiliate, and our general knowledge of the industry.
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- This estimate assumes you sign a Multi-Unit Development Agreement for three to five franchises.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–18)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, the company expects franchisees will rent their business location. The FDD estimates initial costs based on this assumption. Specifically, the document includes an estimated range for 'Rent and Lease Security Deposit' between $2,083 and $20,000, payable to the landlord upon signing the lease.
Care Plus Medical Ucc suggests franchisees negotiate a 'free rent' period to offset the time required to build out the business before opening. However, the FDD notes that if a franchisee chooses to purchase real estate instead of renting, their costs will be significantly different. This implies that while renting is the expected norm, purchasing is an option, albeit one with potentially much higher initial capital requirements.
The initial investment table includes several expenditures related to renting a location, such as leasehold improvements, which are estimated to cost between $15,000 and $45,000, payable to contractors as incurred or when billed. These figures highlight the importance of securing a suitable location and negotiating favorable lease terms, as these costs can substantially impact the overall initial investment for a Care Plus Medical Ucc franchise.