This post was updated on November 1, 2017 to reflect information from Soccer Shots’ 2017 FDD (Item 7).
Detailed Estimates of Soccer Shots Franchise Costs Based on Item 7 (Estimated Initial Investment) of Soccer Shots’ 2017 Franchise Disclosure Document
1. Initial Franchise Fee: $29,500
2. Technology Fee: $84 to $1,000
- The Technology fee is prorated during your first year. The low range reflects franchisees that execute their franchise agreements during the last month of the year. The high range reflects franchisees that execute their franchise agreements during the first month of the year.
3. Expenses While Training: $500 to $2,500
- You must attend the Initial Franchise Training, which is five days in duration, to be conducted at Soccer Shots’ headquarters in Middletown, Pennsylvania or at another location of its choice.
- Training for up to two people is included in the Initial Franchise Fee. Any additional instructors or persons to be trained may be charged a per diem charge of $250. This charge is subject to change.
- The cost of the Initial Franchise Training is included in the Initial Franchise Fee; however, you are responsible for all expenses incurred in attending such training, including travel, lodging, and food expenses, and your employees’ salaries.
- You are responsible for arranging transportation and paying the expenses for meals and lodging for yourself and your employee(s) attending the training program. The amount expended will depend on several factors, including the distance you must travel and the type of accommodation you choose. The estimate contemplates attendance of two people.
4. Insurance: $1,500 to $7,000
- You must maintain, at your own expense, general liability coverage for $1,000,000 per occurrence and $5,000,000 aggregate coverage. This insurance should cover all types of general liability.
- You must also have abuse and molestation coverage for not less than $1,000,000 per occurrence and $2,000,000 aggregate.
- You must also have workers’ compensation and automobile insurance that the law requires. As the industry changes, the franchisor may require you to secure additional insurance.
- The figure given is an estimate of an annual installment. The costs may vary depending on a variety of factors.
5. Office Equipment and Supplies: $500 to $1,500
- The start-up equipment and office supplies provided to you and suggested for the operation of a Franchised Business are included in the Data Sheet attached as Appendix A to the Franchise Agreement. Other costs may include expenses for the installation and purchase or lease of telephones and answering equipment, fax machine and printer, although the franchisor does not require these purchases or leases.
6. Prepaid Expenses and Deposits: $100 to $500
- Prepaid expenses include business licenses, permit costs, insurance premiums, utility deposits, and similar items. The investment and expenditures required of actual franchisees may vary considerably from the projections above, depending on many factors, including the geographic area and the capabilities of any particular franchisee.
7. Organizational Costs/Professional Fees: $500 to $2,000
- Organizational costs include legal and accounting fees, incorporation costs, and other miscellaneous expenses incurred before opening.
- You must use Soccer Shots’ required vendor McKonly & Asbury for certain organizational steps for your franchise entity and business.
8. Additional Funds – 3 Months: $2,900 to $4,100
- This item estimates your initial start-up expenses (other than the items separately identified in the table). These expenses include payroll costs but not any draw or salary for you.
- This estimate assumes you already own a vehicle and have an automobile insurance policy for that vehicle and, therefore, does not include costs related to the purchase of a vehicle and any insurance policy. The estimate also assumes that no vehicle maintenance costs will be attributed to the operation of the Franchised Business. If you purchase a vehicle for the operation of the Franchised Business, your initial costs will likely be significantly greater than the estimate shown.
- These estimates also include a pro-rated amount of the $500 Brand Development Fund Fee and $50 Council Fee.
9. Total Estimated Start-up Costs: $35,584 to $48,100
- These figures are estimates and the franchisor cannot guarantee that you will not have additional expenses starting the business.