Typical costs to open a"$25,000" Franchise Expenditure Estimated Costs Low end High End

Initial Franchise Fee $25,000 $25,000 Rent Not Included Not Included Lease Deposits $5,400 $9,500 Utility Deposits $300 $500 Leasehold Improvements $5,000 $48,000 Furniture and Fixtures $24,225 $47,775 Production Equipment $43,000 $97,000 Tools and equipment $2,500 $5,000 Inventory $5,500 $7,500 Insurance $200 $2,500 Training $2,000 $7,500 Signage $2,500 $15,000 Printed materials $500 $1,000 Grand Opening Marketing Materials $2,500 $2,500 Opening Promotional Expenses $2,500 $8,000 Displays $2,000 $2,000 Freight $1,400 $9,000 Additional Funds* $15,000 $75,000 Total $139,525 $362,775 Note: in addition to the above costs, the franchisee generally pays the franchisor: 2-5% of gross sales as a royalty 2-4% of gross sales as a marketing contribution All audit costs Insurance to indemnify the franchisor against claims a 5,000-10,000 "transfer" fee if the franchise is sold *The franchisor will generally require the franchisee to have a minimum of six months of "working capital"

hs of "working capital"