What are My Startup Costs?
What it Costs when Starting a Smoothie Business
All figures in Item 7 are estimates only based upon the cost of our new generation store design. We rely on information provided to us by our franchisees in the states in which we operate.
|TYPE OF EXPENDITURE||AMOUNT (SEE NOTE 1)||METHOD OF PAYMENT||WHEN DUE||TO WHOM PAYMENT IS TO BE MADE|
|$12,000||$25,000||Lump Sum||Upon Signing the Franchise Agreement||Us. See Note 2.|
|Leasehold improvements||$105,000||$134,000||As Arranged||As Arranged||Third Party Suppliers. See Note 3.|
|Equipment||$66,000||$73,000||As Arranged||As Arranged||Third Party Suppliers. See Note 4.|
|Fixtures||$11,000||$19,000||As Arranged||As Arranged||Third Party Suppliers. See Note 5.|
|Signs||$5,000||$8,500||As Arranged, Lump Sum||As Arranged||Third Party Suppliers. See Note 6.|
|Computer system (includes POS system, networking and software) and store music service||$7,500||$7,500||As Arranged||As Arranged||Third Party
|Professional Fees||$6,500||$13,000||As Arranged||As Arranged||Third parties, such as architects and lawyers. See Note 7.|
|Security Deposits, Utility Deposits and Business Licenses||$4,500||$8,500||As Arranged||As Arranged||Us, one of our affiliates or Landlord; Suppliers; Government Agencies; Utility Companies. See Note 8.|
|Real Estate Costs||$3,500||$7,000||As Arranged||As Arranged||Us, one of our affiliates or Landlord. See Note 9.|
|Opening Inventory||$6,000||$8,000||As Arranged||As Arranged||Third party suppliers approved by us. See Note 10.|
|$7,500||$7,500||As Arranged||As Arranged||Third party suppliers and us. See Note 11.|
|Travel for Training||$0||$3,500||As Arranged||As Arranged||Third Party
Suppliers. See Note 12.
|Miscellaneous and Additional Funds (for first 3 months of operations)||$10,000||$15,000||As Arranged||As Arranged||Third Party Suppliers. See Note 13.|
Unless otherwise noted, none of the initial fees are refundable. The security deposit that you pay for the Store premises lease or in connection with an equipment lease may be refundable at the end of the lease under the conditions set forth in the lease. Third party suppliers will decide if payments to them are refundable. If you sign an Area Development Agreement you will also have to pay the Area Development Fee (minimum of $20,000). The per Store initial investment chart estimates your likely investment to open a ROBEKS® Store at this time. If you purchase multiple franchises at the same time and we allow you to stagger their development, your actual start-up costs may vary due to increases in rent, construction costs and the like.
Area Development Initial Investment Chart
|TYPE OF EXPENDITURE||AMOUNT||METHOD OF PAYMENT||WHEN DUE||TO WHOM PAYMENT IS TO BE MADE|
|Development Fee*||$20,000 to $75,000||Lump Sum||Upon Signing the Area Development Agreement||Us|
|Initial Investment for First Store**||$247,000 to $319,500||See Chart Above||See Chart Above||See Chart Above|
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