Highlights of the Item 19 Financial Performance Representations of The Entrepreneur’s Source (2012 FDD) – Part 2
- Being engaged by more or less clients in any given month will cause your individual results to differ. Charging clients at a rate other than those suggested by the franchisor will cause your individual results to differ.
- There is no assurance that you will earn the same amount as reflected in the projections.
- The figures were prepared without an audit. Prospective franchisees should be advised that no certified public accountant has audited these figures or expressed an opinion with regard to the content or form.
- The following assumptions were made regarding expenses:
- Equipment – This figure assumes the need for replacing existing equipment. It does not include the equipment necessary to begin a Franchised Business as identified in Item 7 of the disclosure document, and is amortized over the term of the franchise agreement.
- Professional services – This figure assumes that you will hire a professional accountant to prepare your taxes and consult with you on various accounting matters throughout the year, as well as hiring an attorney to do any necessary business filings and registrations.
- Phone and Internet – This figure assumes an annual contract for a separate telephone line and dial up connection for the Internet. If you purchase multiple phone lines or other premium services, this figure may be higher.
- Marketing – This figure represents your annual Brand Building Fund fee contributions, plus 5% local marketing expenses. You are not required to expend any funds for local marketing, but the franchisor recommends that you do so.
- Office Supplies – This figure assumes an expenditure of $50 per month for office supplies.
- Insurance – This figure assumes that you will obtain insurance in accordance with the terms of the Franchise Agreement. If you purchase additional insurance above that which is required, this figure may be higher.
- Miscellaneous – This figure assumes miscellaneous expenses to operate your franchised business, including costs for the annual conference, conference room rentals, and technology fees and E-Myth fees.
- The franchisor has calculated this chart based on the client development for both business coaching and placement coaching.
- This chart reflects one business coaching client per month for Years 1-3 and two business coaching clients per month for Years 4-5.
- The chart reflects one paid placement fee per month in Years 1-2, one and one-half paid placement fees per month in Years 3-4, and two paid placement fees per month in Year 5.