What does the Devon Creek additional operating capital estimate include?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
16This is an estimate of the amount of additional operating capital that you may need to operate your Franchised Business during the first three (3) months after commencing operations. We cannot guarantee that you will not incur additional expenses in starting the business that may exceed this estimate. This estimate includes such items as initial payroll, taxes, bank charges, miscellaneous supplies and equipment, initial staff recruiting expenses, additional marketing costs and other miscellaneous items. These estimates do not include any compensation to you, nor do they include debt service. These items are by no means all-inclusive of the extent of possible expenses.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT – START UP FRANCHISEE (FDD pages 16–21)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, the additional operating capital estimate covers expenses a franchisee may incur during the first three months of business operations. Devon Creek cannot guarantee that franchisees will not incur additional expenses exceeding this estimate.
The estimate includes initial payroll, taxes, bank charges, miscellaneous supplies and equipment, initial staff recruiting expenses, additional marketing costs, and other miscellaneous items. The estimate does not include compensation to the franchisee or debt service.
Prospective Devon Creek franchisees should consider that these items are not all-inclusive of possible expenses. The FDD lists the operating expenses/additional funds for three months ranging from $5,000 to $15,000 or $10,000 to $30,000, depending on which table you reference. These funds are intended as cash reserves in the franchisee’s banking account to pay ongoing payroll, suppliers, and vendors.