Does the initial investment estimate for Endless Summer Sweets include depreciation/amortization?

According to Endless Summer Sweets' 2024 Franchise Disclosure Document, the initial investment estimate does not include depreciation or amortization. The FDD specifies that the estimate may exclude items such as depreciation/amortization, among other expenses like initial payroll taxes, ongoing franchise fees, marketing fund contributions, professional and accounting fees, additional advertising, insurance, health insurance and workers' compensation, rent, repairs and maintenance, bank charges (including interest), miscellaneous supplies and equipment, initial staff recruiting expenses, state tax, deposits and prepaid expenses (if applicable) and other miscellaneous items.

For a prospective Endless Summer Sweets franchisee, this means that the total initial investment required to start the business could be higher than the estimated range provided in Item 7 of the FDD. Depreciation and amortization are accounting methods used to allocate the cost of assets over their useful lives, and these costs can be significant, especially for equipment-heavy businesses.

Therefore, it is crucial for potential franchisees to consider these additional costs when planning their budget. It would be prudent to consult with a financial advisor or accountant to develop a comprehensive financial plan that includes these often overlooked expenses. Understanding these potential costs upfront will help ensure a more accurate assessment of the financial resources needed to successfully launch and operate an Endless Summer Sweets franchise.