Franchise Costs 2013: Detailed Estimates of Fresh Healthy Vending Franchise Costs (2013 FDD)

Detailed Estimates of Fresh Healthy Vending Franchise Costs Based on Item 7 (Estimated Initial Investment) of Fresh Healthy Vending’s 2013 Franchise Disclosure Document

1.  Initial Franchise Fee:  $5,000 to $30,000

• The Initial Franchise Fee is fully earned by the franchisor when paid and is not refundable under any circumstances.

2.  Purchase Price for Vending Machines:  $75,000 to $405,000

• When you sign your Franchise Agreement, you will agree to purchase a number of Vending Machines from the franchisor.

• You will pay the franchisor a non-refundable deposit for the Vending Machines equal to 40% of the Purchase Price when you sign your Franchise Agreement, and must pay the remaining 60% of the Purchase Price prior to the scheduled delivery date for the Vending Machines.

3.  Travel and Living Expenses While Training:  $0 to $2,000

• You or your representative (if you are an entity) must attend training at either your local Vending Machine distributor’s office or Fresh Healthy Vending’s corporate headquarters.

• The expenses you will incur for travel and living expenses while training will depend on the number of persons who attend training and the distance you must travel to the training location. You will pay the travel expenses for you and for any additional trainees.

• The Initial Franchise Fee includes training for 2 persons. If more than 2 persons attend the Initial Training Program, an additional initial training fee of $250 must be paid for each additional trainee.

4.  Storage Unit:  $0 to $500

• You will need adequate storage space for the Products you will use to stock your Vending Machines. You may store your inventory at your home or in your Vehicle or rent a storage facility from a third party, if your storage arrangement does not violate any applicable laws, regulations, or zoning restrictions and conforms to the company’s requirements for a storage facility.

• The suppliers and distributors for the Vending Machine products must approve the location designated by you for the delivery of the products.

5.  Equipment:  $1,200 to $10,000

• This estimate covers a portable cold storage unit (which cost ranges from $1,200 to $3,000) for your Vehicle, a mobile telephone, computer equipment, a printer, a fax machine, and a note and coin counter.

6.  Internet Account:  $0 to $50

• You will need to obtain and maintain an Internet account to send and receive email.

7.  Deposits and Other Permits and Fees:  $0 to $1,000

• The estimate includes amounts for security deposits, utility deposits, business licenses, permits, health permits, and other prepaid expenses.

8.  Insurance:  $350 to $3,000

• This estimate covers your cost of general liability, workers’ compensation insurance, and automobile insurance premiums.

9.  Vehicle:  $0 to $750

• Unless you already own or otherwise have access to a small sports utility vehicle, hatchback car, or other midsize or large vehicle, you will need to acquire a Vehicle for the transportation of your inventory. The cost estimate for your Vehicle varies based on the make and model of your Vehicle, and whether you currently own, lease, or purchase your Vehicle, and is based upon a 36 to 60 month lease for the Vehicle.

10.  Customized Vehicle Graphics:  $0 to $3,000

• This estimate includes signs for your Vehicle which may be required by some customers to allow access to your locations.

11.  Legal Fees:  $0 to $1,500

12.  Opening Inventory:  $1,000 to $12,000 ($200 to $400 per Vending Machine)

• This estimate is based on an inventory cost estimate of $200 to $400 per Vending Machine. All payments for inventory must be made by ETF in advance of the delivery date of the Products.

13.  Coin Float:  $385 to $2,310

• This estimate is based on coin/bill float of approximately $77 per Vending Machine. This is not a payment. It is cash which a franchisee must keep circulating in each Vending Machine to provide change to customers.

14.  Additional Funds – 3 Months:  $5,000 to $30,000

• These expenses are additional funds you may need to expend during the initial phase of the Franchised Business. They do not account for any revenues during this period of time, nor do they include expenses for any of the other categories described above.

• The franchisor bases its estimate of these expenses on its own experience.

15.  Total:  $87,935 to $501,110