What is the estimated minimum cost for business licenses and permits for a Devon Creek franchise?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Expenditure | Amount Low | Amount High | Method of Payment | When Due | To Whom Payment is Made |
|---|---|---|---|---|---|
| Initial Franchise Fee1 | $39,000 | $39,000 | Lump Sum | At the Signing of the Franchise Agreement | Us |
| Your Training Expenses2 | $3,500 | $10,000 | As Incurred | As Incurred | Third parties for travel and lodging |
| Initial Equipment Package Fee3 | $5,000 | $30,000 | Lump sum | At the Signing of the Franchise Agreement, not applicable for additional franchises awarded to you | Suppliers/ vendors |
| Premises lease deposit and first month’s rent and utilities4 | $0 | $15,000 | As incurred | Upon signing lease | Landlord |
| Leasehold Improvements, Construction and/or Remodeling5 | $100 | $20,000 | As supplier/ Vendor Requires | As Incurred | Suppliers/ vendors |
| Signage6 | $100 | $5,000 | As Incurred | As Incurred | Supplier |
| Business Licenses | $500 | $1,000 | As Incurred | As Incurred | Governmental |
| and Permits7 | agencies | ||||
| Initial Inventory to | $500 | $1,000 | Lump Sum | As Incurred | Suppliers |
| Begin Operating8 | |||||
| Furniture & Fixtures9 | 1,000 | 4,000 | As Incurred | As Incurred | Suppliers |
| Service Vehicle & | $3,000 | $10,000 | As | As Incurred | Suppliers |
| Wraps10 | Arranged | ||||
| Professional Fees11 | $1,500 | $2,000 | Lump Sum | As Incurred | Suppliers |
| Initial Launch | $3,000 | $18,000 | Lump Sum | As Incurred | Suppliers |
| Marketing12 |
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 initial investment for business licenses and permits ranges from $500 to $1,000. These costs are paid as incurred to governmental agencies. The FDD notes that the franchisee is responsible for obtaining and maintaining all necessary permits and licenses to operate their Devon Creek franchise. This estimate covers local business licenses, typically valid for one year, and the initial costs of licenses, certifications, or permits required for the franchisee or their employees to provide the services offered. The actual costs for these permits and licenses can vary depending on the location of the franchise. Prospective franchisees should budget accordingly, keeping in mind that these figures are estimates and actual costs may differ. It is important to verify local requirements to accurately forecast these expenses.