What does the high end of the vehicle cost estimate represent for a Devon Creek franchise?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
10You must use a vehicle of the make, model, and age we require, for travel to your clients' properties. Your vehicle must be no more than 5 years old and in good condition at the time vehicle wrapping occurs, free of noticeable dents or damage. You may use a vehicle you currently own, if we determine, in our sole discretion, that it meets our specifications, and we give our consent. If you must purchase or lease a vehicle, we list current acceptable manufacturer/models in our operations manual. The high end of the above estimate represents the cost of three (3) months of lease payments on a vehicle with no down payment. You must maintain your vehicle in good working order, cleanliness and appearance and promptly repair any visible exterior damage, including but not limited to, dents and scratches. Your actual costs may be higher than the above-listed amount, depending on the quantity of equipment you lease and your credit history. We recommend that you lease this equipment from our approved suppliers. You may elect to purchase, rather than lease, your equipment. If you plan to purchase your vehicle the cost will be significantly higher than what is listed above.
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 high end of the service vehicle cost estimate represents the cost of three months of lease payments on a vehicle with no down payment. Devon Creek requires franchisees to use a vehicle that is no more than five years old and in good condition. Franchisees can use a vehicle they currently own if it meets Devon Creek's specifications and receives their consent.
The FDD states that acceptable vehicle manufacturers and models are listed in the Devon Creek operations manual. Franchisees are responsible for maintaining their vehicle in good working order, cleanliness, and appearance, and must promptly repair any visible exterior damage, including dents and scratches. The actual costs for the vehicle may be higher than the listed amount, depending on the quantity of equipment leased and the franchisee's credit history.
Devon Creek recommends that franchisees lease equipment from their approved suppliers. The FDD notes that if a franchisee plans to purchase a vehicle, the cost will be significantly higher than the lease estimate provided. This is a crucial consideration for prospective franchisees as it highlights the potential for significantly higher initial investment costs depending on the chosen method of acquiring a vehicle.