What is the estimated initial investment based on for a Deck Medic Business?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | |---|---|---|---| To Whom Payment is Made | | | | | | | | Initial Franchise Fee | $30,000 | Lump sum | When Franchise | Us | | (Note 1) | | | Agreement is signed | | | Storage Unit (Note 2) | $200 – $ 500 | As arranged | As incurred | Landlord | | Sherwin Williams | $3,000 – $5,000 | As arranged | As incurred | Sherwin Williams | | Start-Up Package | | | | | | (Note 3) | | | | | | Equipment (Note 4) | $1,000 – $2,000 | As arranged | As incurred | Suppliers | | Initial Inventory | $2,500 – $5,000 | As arranged | As incurred | DM Supplies, | | (Note 5) | | | | Suppliers | | Computer, Software, | $0 – $2,000 | As arranged | As incurred | Suppliers | | and Business | | | | | | Management System | | | | | | (Note 6) | | | | | | Service Vehicle | $0 – $4,400 | As arranged | As incurred | Automobile | | (Note 7) | | | | dealers |
| Service Vehicle Wrap | $600 – $1,500 | As arranged | As incurred | Suppliers |
|---|---|---|---|---|
| Start-Up Marketing | $5,000 – $20,000 | As arranged | As incurred | Suppliers |
| (Note 8) | ||||
| Insurance Deposits – | $500 – $2,500 | As arranged | As incurred | Insurers |
| Three Months (Note 9) | ||||
| Travel for Initial | $2,000 – $5,000 | As arranged | As incurred | Airlines, hotels, |
| Training (Note 10) | restaurants | |||
| Professional Fees (Note 11) | $2,000 – $3,000 | As arranged | As incurred | Attorneys, accountants, advisors |
| Licenses and Permits | $150 – $250 | As arranged | As incurred | Government |
| (Note 12) | ||||
| Additional Funds – | $5,000 – $15,000 | As arranged | As incurred | Us, employees, |
| Three Months | suppliers, landlord, | |||
| (Note 13) | utility suppliers | |||
| Total Estimate | ||||
| (Note 14) |
| Type of Expenditure | Amount | Method of Payment | When Due | |---|---|---|---| To Whom Payment is Made | | | | | | | | Initial Franchise Fee | $50,000 – 95,000 | Lump sum | When Franchise | | (Note 1) | | | Agreement is signed | | Estimated Initial | $21,950 – $66,150 | Estimated Initial Investment is based on estimate contained | | | Investment to Open | | in Table A, above, of this Item 7, for a single Territory, less | | | Single Territory | | the Initial Franchise Fee reported in Table A. | | | Total Estimate | $71,950 – $161,150 | | | | (Note 2) | | | |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–19)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the estimated initial investment to open a single territory ranges from $21,950 to $66,150, excluding the initial franchise fee. When including the initial franchise fee, the total estimated investment for a single territory ranges from $71,950 to $161,150. This estimate is based on expenses for a single territory, the operation of one service vehicle, and the experiences of Deck Medic's affiliate and franchisees.
For a single territory, the initial franchise fee is $30,000. Other expenditures include a storage unit ($200 - $500), a Sherwin Williams start-up package ($3,000 - $5,000), general equipment ($1,000 - $2,000), initial inventory ($2,500 - $5,000), computer, software, and business management system ($0 - $2,000), and a service vehicle ($0 - $4,400).
Additional costs to consider are the service vehicle wrap ($600 - $1,500), start-up marketing ($5,000 - $20,000), insurance deposits for three months ($500 - $2,500), travel for initial training ($2,000 - $5,000), professional fees ($2,000 - $3,000), licenses and permits ($150 - $250), and additional funds for three months ($5,000 - $15,000).
For franchisees considering multiple territories, the initial franchise fee ranges from $50,000 to $95,000 for two to six territories. The estimated initial investment to open a single territory is based on Table A of Item 7, less the initial franchise fee reported in Table A. These estimates do not include interest and financing charges or management level compensation. Costs will be higher if the geographic size of the operating territory is increased by adding additional territories.