What is the total estimated initial investment range 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. |
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 total initial investment for a start-up franchisee ranges from $75,000 to $117,000. This investment covers various expenses, including the initial franchise fee, training expenses, equipment, lease costs, and initial marketing.
The initial franchise fee is a fixed cost ranging from $39,000 to $39,000, paid upfront upon signing the Franchise Agreement. Other significant costs include the initial equipment package fee, which ranges from $5,000 to $30,000, and initial launch marketing expenses, estimated between $3,000 and $18,000. Premises costs, such as lease deposits, rent, and utilities, can range from $0 to $15,000, depending on whether the franchisee operates from a home office or leases a commercial space. Leasehold improvements could range from $100 to $20,000.
Additional expenditures include signage ($100 to $5,000), business licenses and permits ($500 to $1,000), initial inventory ($500 to $1,000), furniture and fixtures ($1,000 to $4,000), service vehicle and wraps ($3,000 to $10,000), professional fees ($1,500 to $2,000), insurance ($2,500 to $7,500), CRM/computer equipment ($5,000 to $7,500), office equipment and supplies ($300 to $1,000), and operating expenses/additional funds for the first three months ($10,000 to $30,000). These figures are estimates based on the affiliate-owned outlet's experience, and actual costs may vary depending on factors such as management skill, local economic conditions, and competition.