What is the estimated minimum cost for furniture and fixtures for a Devon Creek franchise?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
INVESTMENT – START UP FRANCHISEE
| 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 |
| Insurance13 | $2,500 | $7,500 | Lump Sum | As Incurred | Suppliers | |---|---|---|---|---|---| | CRM/Computer | $5,000 | $7,500 | As Incurred | As Incurred | Suppliers | | Equipment14 | | | | | | | Office Equipment & | $300 | $1,000 | As Incurred | As Incurred | Third Party | | Supplies15 | | | | | | | Operating Expenses / Additional Funds – 3 months16 | $10,000 | $30,000 | As Incurred | As Incurred | Cash reserves in franchisee’s banking account to pay ongoing payroll, suppliers, and vendors. | | TOTAL | $75,000-$117,000 | | | | | <sup>1 Please see Item 5 for information on incentive programs that may offer a discount on the Initial Franchise Fee. The amounts stated in the single unit tables is for one outlet operated pursuant to a single Franchise Agreement.
<sup>2 The cost of the Initial Management Training Program is included in the Initial Franchise Fee. The Initial Management Training Program is takes place both virtually and in Charlotte, North Carolina. The chart estimates the costs for transportation, lodging, and meals for your trainee(s). These incidental costs are not included in the Initial Franchise Fee. Your costs will depend on the number of people attending training, their point of origin, method of travel, class of accommodation, and living expenses. The franchisor may charge franchisees $400 per day- per trainer, plus expenses, for any onsite training requested by the franchisee or required by the franchisor. The duration of the in-person training program is up to five (5) days. This estimate does not include employee wages.
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 low-end cost for furniture and fixtures is between $100 and $1,000, while the high-end cost is between $4,000 and $7,500. These costs are to cover setting up an office space with items such as desks, chairs, shelving, and file cabinets.
The FDD notes that these costs are estimates and are incurred as needed, with payments made to suppliers. The specific amount will depend on the franchisee's choices for office setup and the prices charged by suppliers in their area.
Prospective Devon Creek franchisees should consider these figures as a general guideline and research local suppliers to get a more accurate estimate of the costs for furniture and fixtures in their specific location. It's also important to note that these costs are in addition to other initial investment expenses, such as the franchise fee, training expenses, and initial equipment package fee.