What is the estimated low and high cost for operating supplies for a My Salon Suite franchise?

Question

Accepted Answer

review these figures carefully with a business advisor before making any decision to purchase the Franchise Business.

ESTIMATED INITIAL INVESTMENT

Type of	Amo	ount	Method of		To Whom
Expenditure	Low	High	Payment	When Due	Payment is to be Paid
Initial Franchise Fee ⁽¹⁾	$50,000	$50,000	Lump sum	Upon signing of Franchise Agreement	Franchisor
Travel and Living Expenses	$1,000	$3,000	As incurred	As incurred	Airlines, Hotels, Restaurants, etc.
Rent or Real	$0	$0	As determined by lessor	Prior to opening	Lessor
Estate ⁽²⁾
Improvements/	$12,500	$50,000	As incurred	Prior to opening	Vendors
Conversions ⁽³⁾
Furniture and Fixtures	$12,500	$50,000	As determined by vendors	Prior to opening or as arranged with vendors	Vendors
Signage	$4,960	$23,230	As determined by vendors	Prior to opening or as arranged with vendors	Vendors
Miscellaneous	$5,000	$9,000	As incurred	Prior to opening	Vendors,
Opening Costs ⁽⁴⁾					Utilities, etc.
Operating	$0	$0	As incurred	Prior to opening	Approved Vendors
Supplies ⁽⁵⁾
Advertising/ Marketing (3 Months)	$15,000	$20,000	As incurred	Prior to opening	Mailings – Media
Insurance (Annual) ⁽⁶⁾	$1,400	$4,000	As determined by insurance company	Prior to opening or as arranged by vendor	Insurance Company/Agent
Additional Funds – 3 Months ⁽⁷⁾	$10,000	$20,000	As incurred	As incurred	Various Third Parties
Design Standards	$1,500	$2,500	Lump sum	Prior to opening, within 5	Franchisor
Fee ⁽⁸⁾
Type of	Amo	ount	Method of		To Whom
Expenditure ⁽¹⁾	Low	High	Payment	When Due days of invoice	Payment is to

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 29–35)