Does the estimated initial investment for a Deck Medic Business include management level compensation?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Note 14: About Your Estimated Initial Investment – This is an estimate of the initial start-up expenses for a Deck Medic Business. We have based these estimates on the experiences of our affiliate and our franchisees in developing a Deck Medic Business. These are only estimates and your costs and the range of those costs, may vary. These estimates do not include interest and financing charges that you may incur and they do not include management level compensation payable to you or your owners. If you increase the geographic size of your Operating Territory by adding Additional Territories your costs will be higher. These estimates are for one Deck Medic Business within a single Territory and the operation of one service vehicle.
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 does not include management level compensation. Note 14 clarifies that the estimated initial investment is based on the experiences of Deck Medic's affiliate and franchisees. These estimates do not include interest and financing charges, nor do they include management level compensation payable to the franchisee or their owners.
This means that prospective Deck Medic franchisees should plan their finances accordingly, ensuring they have sufficient capital to cover their own salaries and any owner compensation during the initial phase of the business. The initial three-month period is especially critical, as Note 13 indicates that the additional funds estimate also excludes compensation to the franchisee or their owners. This figure is designed to cover operating expenses such as employee salaries, inventory, rent, and utilities.
Therefore, when budgeting for a Deck Medic franchise, franchisees must account for personal income and owner compensation separately from the estimated initial investment and additional funds for operating expenses. This is a common practice in franchising, as the initial investment typically focuses on setting up the business rather than covering ongoing owner salaries. Franchisees should carefully review their financial projections and ensure they have adequate resources to sustain themselves and their business during the startup phase.