Franchise Costs: Detailed Estimates of Complete Nutrition Franchise Costs (2016 FDD)

This post was updated on August 8, 2016 to reflect information from Complete Nutrition’s 2016 FDD (Item 7).

Detailed Estimates of Complete Nutrition Franchise Costs Based on Item 7 (Estimated Initial Investment) of Complete Nutrition’s 2016 Franchise Disclosure Document

1.  Initial Franchise Fee:  $49,500

2.  Rent:  $2,700 to $5,400

• A franchised store is customarily established in a local strip mall (and in some occasions, a regional shopping mall), and requires an average of approximately 800 to 1,600 square feet for an in-line strip mall location.

• These estimates are based on one month’s rent in and around Omaha, Nebraska.

• In most cases, rent includes utilities, so the costs of utilities have been included in the rent calculation above.

3.  Deposits:  $2,700 to $5,400

• You may have to pay a landlord or utility companies security deposits or other fees prior to occupation of the premises or prior to the beginning of utility services.

• Typically, a landlord will require one month’s rent as a security deposit.

4.  Build Out:  $57,025 to $99,200

• The cost of the construction is your sole responsibility and may be required to be paid up front to the landlord or third parties prior to occupancy or it may be included in the monthly rental amount.

• The range of figures shown above is for a space in “ready to occupy” condition up to an “average” build out of a 1,400 square foot space.

• You will be responsible for paying all taxes associated with the build out, including use taxes.

5.  Licenses and Dues:  $350

• You will be required to obtain certain business licenses from specific governing agencies to operate your Store.

6.  Insurance:  $350 to $400/month

• The cost of insurance will vary based on many factors and may be paid in a lump sum annually, quarterly, and sometimes monthly. Complete Nutrition may designate the agent whom you must purchase your insurance through.

7.  Signage:  $5,500 to $16,000

• Signage costs will vary and may exceed the projected amounts based on size of sign, material used, shipping fees, local permit, and contractor fees.

8.  Furniture and Fixtures:  $22,500 to $33,500

• You will be required to purchase furniture, fixtures, and equipment for your store from approved suppliers.

• Furniture and fixtures may include, but are not limited to, display cases and racks, internal signs, track lighting and accent lighting, and a front counter for servicing customers.

9.  Computer Hardware and Software:  $8,900 to $13,225

• This estimate includes the Computer System and the cost of a security and surveillance system.

10.  InBody or Similar Body-Analysis Equipment:  $165 to $6,995

• You must purchase such InBody or similar body-analysis equipment as the franchisor may designate. The lower end of the range stated in the table reflects the monthly cost of such equipment under a lease. The higher end reflects the cost to purchase such equipment.

11.  Travel and Living Expenses While Training:  $1,250 to $2,000

• The initial training fee is included in the Initial Franchise Fee. You are solely responsible for training expenses, which will vary based on the number of people required to be trained; distance traveled; mode of travel; time in training; choice of accommodations, food, and entertainment; and salaries paid by you to employees.

12.  Initial Inventory:  $15,000 to $25,000

• You must purchase your initial and ongoing inventory of nutritional supplements and related beauty and health products from Complete Nutrition, its affiliate R2, or other sources the franchisor designates or approves from time to time, pursuant to the specifications set forth in the Operations Manual and in accordance with the Franchise Agreement.

13.  Marketing Opening Expenses:  $5,000 to $15,000

• This figure is the amount that you will pay for local advertising to promote the opening of your franchise and includes a required start-up and grand opening campaign of at least $20,000. This will be paid to the company’s designated advertising agency which will typically purchase advertising from newspapers, radio stations, and various other media.

14.  Turnkey Services:  $4,750

• Complete Nutrition has partnered with a designated vendor to provide services, including site identification, lease negotiation and review, construction management, and other related services. Complete Nutrition refers to these services as “store-opening services.”

15.  Additional Funds (3 Month Period):  $15,500 to $41,500

• These amounts reflect estimates attributable to three months worth of additional funds for staff salaries and operating expenses. The estimate of working capital includes legal fees but does not include an owner’s salary or draw, nor does it include any finance charges, interest, or debt service obligation.

16.  Estimated Total Range:  $191,190 to $318,220