(Ambrosio’s note:  Welcome to FDD Talk 2.0, a more comprehensive version of our flagship content, featuring not only the Item 19 financial performance representations of select franchises, but their estimated initial investment, unit growth, and other key items of their 2012 FDD as well.)

Highlights of Pandora’s 2012 Franchise Disclosure Document – Part 1

Estimated Initial Investment for a Pandora Retail Jewelry Store

• The discussion below describes the estimated minimum requirements for beginning operations of a Pandora retail jewelry store.  The estimated minimum requirements may vary depending on factors such as your financial condition, your financing arrangements, and the business decisions you make.

1.  Leasehold Improvements:  $20,000 – $140,000

• The cost of leasehold improvements will vary depending upon the type of location, condition of the premises, the terms of your lease, and whether your landlord pays a portion of the leasehold improvements (and if so, whether your landlord charges those amounts back to you in your lease payment.)

2.  Design Fees:  $7,500 – $12,000

• You will need to purchase an initial design pack for your store from a single designated supplier for approximately $4,500. The initial design pack is not a blueprint from which your store can be built. You will need to hire your own architect to fit the initial design pack drawings to your space and to create blueprints from which any necessary build out can be built, at an additional estimated cost of $3,000 to $7,500. The estimate above includes both costs.

3.  Fixtures:  $45,000 – $90,000

• This is the estimate for your fixtures such as all displays, flooring, lighting, and non-custom signage. The invoice amount for the fixtures ranges from $90,000 to $180,000; however, you will only pay 50% of the invoice amount.

4.  Display Accessories:  $2,000 – $5,000

• The estimate for display accessories includes merchandising materials such as trays, earring trees, ribbon pillows, product holders, and wall graphics, among others.

5.  Fixture Installation and Shipping Costs:  $6,000 – $15,000

6.  Custom Signage:  $0 – $10,000

7.  Training Attendance Costs and Expenses:  $3,000 – $5,000

• Pandora does not charge a fee for the Training Program. However, you must bear all travel costs and expenses associated with your and your store manager’s attendance at the initial Training Program for new franchisees. The estimated expenses assume you incur reasonable travel costs and expenses (e.g. transportation, hotel, meals) for two persons for 3 days of training.

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