On what is the total estimated initial investment for a Crawlspace Medic franchise based?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
YOUR ESTIMATED INITIAL INVESTMENT
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is Made | |
|---|---|---|---|---|---|
| Initial Franchise Fee1 | $59,000 | Lump sum payment in cash or available funds. | Upon signing the Franchise Agreement. | Payable to us | |
| Design and | $0 to | As incurred | Before opening | Third-Party Providers | |
| Architectural Fees2 | $3,000 | ||||
| Construction, Leasehold Improvements 2 | $0 to $20,000 | As incurred | Before opening | Contractor/Third-Party providers | |
| Furniture and | $1,000 to | As incurred | Before opening | Third-Party Providers | |
| Fixtures2 | $5,000 | ||||
| Equipment (Including | $10,000 to | Lump sum | Before opening | Third-party providers and | |
| Vehicle)3 | $53,000 | us | |||
| Signage (including | $600 to | As incurred | Before opening | Third-party providers or | |
| vehicle)4 | $3,000 | Us | |||
| CRM/Back Office | $2,500 to | Lump Sum | Before opening | Third-party providers | |
| System5 | $4,300 | ||||
| Initial Inventory6 | $0 to $800 | As incurred | Before opening | Payable to us | |
| Facility Occupancy | $0 to | As incurred | Before opening | Landlord | |
| Costs7 | $2,500 | ||||
| Lease, Utility, and | $1,300 to | As incurred | Before opening | Utility providers | |
| Security Deposits8 | $2,600 | ||||
| Insurance Deposits | $2,000 to | As arranged | Before opening | Insurance company | |
| and Premiums9 | $8,000 | ||||
| Pre-opening Travel and Training Expense10 | $5,000 to $10,000 | As incurred | Before opening | Airline, hotel, restaurants | |
| Initial Launch | $5,000 to | As incurred | Prior to opening | Third parties | |
| Marketing | $10,000 | ||||
| Professional Fees11 | $1,000 to $8,000 | As arranged | Before opening | Attorneys, accountants | |
| Business Permits and | $500 to | As incurred | Before opening | Licensing Authorities | |
| Licenses12 | $1,500 | ||||
| Office Equipment and | $1,000 to | As incurred | Before opening | Third-party providers | |
| Supplies13 | $1,500 | ||||
| Additional funds – 3 | $40,000 to | As incurred | After opening | Various | |
| Months14 | $60,000 | ||||
| TOTAL15 $118,900 to $242,200 |
Notes:
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- The initial franchise fee is the same for all similarly situated franchisees. Refer to Item 5 of this Disclosure Document for available discounts
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- This estimate is for the costs for the development of a Franchised Business with approximately 1,000 square feet of warehouse and office space, for the design and architectural fees and the furniture and fixtures for the same.The difference in the low and the high improvement cost estimates is due to the difference in size of the location.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–20)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the total estimated initial investment of $118,900 to $242,200 is based on the historical experience of their affiliate. This total encompasses a range of expenses that a new franchisee can expect to incur while starting the business. These expenses include the initial franchise fee of $59,000, design and architectural fees which range from $0 to $3,000, construction and leasehold improvements which range from $0 to $20,000, and furniture and fixtures which range from $1,000 to $5,000.
Additional costs factored into the total initial investment for a Crawlspace Medic franchise include equipment (including a vehicle) which ranges from $10,000 to $53,000, signage (including vehicle) which ranges from $600 to $3,000, CRM/Back Office System which ranges from $2,500 to $4,300, initial inventory which ranges from $0 to $800, and facility occupancy costs which range from $0 to $2,500. Furthermore, lease, utility, and security deposits range from $1,300 to $2,600, insurance deposits and premiums range from $2,000 to $8,000, pre-opening travel and training expenses range from $5,000 to $10,000, and initial launch marketing ranges from $5,000 to $10,000.
Other professional fees such as attorneys and accountants range from $1,000 to $8,000, business permits and licenses range from $500 to $1,500, office equipment and supplies range from $1,000 to $1,500, and additional funds for the first three months range from $40,000 to $60,000. The FDD recommends that prospective franchisees use these estimates as a guide to develop their own business plan and budget, and to investigate specific costs in their area. The document also notes that actual costs may vary based on factors such as geographic location, local market conditions, the selected location, the time it takes to build sales, and the franchisee's business skills.