Detailed Estimates of WSI Franchise Costs Based on Item 7 (Estimated Initial Investment) of WSI’s 2013 Franchise Disclosure Document
- The franchisor is unable to calculate your exact investment for the Franchised Business due to the many factors which influence the total projected costs, such as location, amount of leased space, amount of remodeling needed, and so forth.
- Your initial investment will also vary considerably depending upon the method and amount of financing that you use.
- The initial franchise fee, equipment, and other items are shown in full, although they may be financed or leased.
1. Initial Franchise Fee: $49,700 to $147,000
- The lower estimate represents the initial franchise fee for the Local Territory License, the higher estimate represents the initial franchise fee for the International Territory License.
2. Travel and Related Expenses During Training: $1,500 to $3,000
- You must pay for your transportation, accommodations, meals, and other expenses associated with the initial training program. The initial training will take place at the company’s headquarters in Mississauga, Ontario, and your actual expense will depend on the cost of traveling from your home to Mississauga.
- Occasionally, and solely at its discretion, the franchisor may offer initial training at other locations.
- You may at your cost purchase additional sales or related training by an approved third party supplier, at a cost ranging from $3,000 to $6,000. This is optional to the franchisee.
3. Computer and Related Equipment: $1,000 to $4,000
- You must purchase certain computer hardware/software and related equipment for the operation of the Franchised Business.
4. Real Estate: Not Specified
- The table does not reflect an amount for investment in real estate since you may either lease business premises or operate out of your home. Most WSI franchisees operate out of their homes. If you choose to lease space, the franchisor has no requirements regarding site size or location.
5. Office Supplies and Miscellaneous: $100 to $300
6. Permits and Licenses: $500
7. Telephone (Installation): $100 to $200
8. Internet (Installation): $50
9. Marketing and Lead Generation: $9,000 to $12,000
10. Legal and Accounting: $500 to $1,000
11. Insurance: $400 to $600
- During the term of the Franchise Agreement, you must pay for all insurance premiums including comprehensive general liability insurance. You must name the franchisor as an additional insured at your expense and furnish the company on request with certificates of insurance, along with evidence that the premiums have been paid.
- You are liable for any cost and expense, including attorneys’ fees, that the franchisor incurs associated with any matters insured pursuant to the insurance required under the Franchise Agreement.
- Refundability will depend upon your negotiations with the insurer.
12. Additional Funds – 3 Months: $1,500 to $3,000
- This item estimates your expenses during your first three months of operation (other than the items identified separately in the table). These expenses include payroll costs but not any draw or salary for you.
- These figures are estimates, and the franchisor cannot guarantee that you will not have additional expenses in starting the business.
13. Total Estimated Initial Investment (excluding real estate): $64,350 to $171,650
- The franchisor relied on its experience since 1998 in compiling these estimates.