What is the Devon Creek estimate of additional operating capital intended to cover?
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 estimated additional operating capital is intended to cover the costs of operating the franchise during the first three months of business. Devon Creek estimates this to be between $5,000 and $15,000.
Specifically, this estimate includes items such as initial payroll, taxes, bank charges, miscellaneous supplies and equipment, initial staff recruiting expenses, and additional marketing costs. However, it does not include any compensation to the franchisee or debt service.
Devon Creek notes that these estimates are not all-inclusive and that franchisees may incur additional expenses. The actual amount of additional operating capital needed can vary based on factors such as management skills, local economic conditions, and the level of sales reached during the initial period. The FDD recommends that prospective franchisees carefully review these figures with a business advisor before investing in a Devon Creek franchise.