Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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Franchise Costs 2013: Detailed Estimates of Zoom Room Franchise Costs (2013 FDD)

by Franchise Chatter on December 22, 2013

in Franchise Costs, Pet Franchise

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Detailed Estimates of Zoom Room Franchise Costs Based on Item 7 (Estimated Initial Investment) of Zoom Room’s 2013 Franchise Disclosure Document

1.  Initial Franchise Fee:  $35,000

2.  Real Estate/Rent:  $9,750 to $28,800

  • Zoom Room Franchise PhotoThis estimate includes 3 months’ rent at a monthly rate of approximately $1.25 per square foot to $3.00 per square foot. Your actual rent payments may vary, depending upon your location and your market’s retail lease rates.
  • The franchisor estimates, but does not require, that the Dog Facility be 2,800 to 3,200 square feet in size.
  • The Zoom Room business should be located in an area that has easy access to highways or major thoroughfares and adequate parking and may be located in retail centers or in stand-alone buildings on major streets with excellent visibility.
  • The costs of purchasing a facility vary so widely that the franchisor cannot reasonably estimate the cost.

3.  Utility Deposits:  $0 to $1,000

  • This estimate includes security deposits required by the landlord and utility companies, but not your telecommunications services.

4.  Leasehold Improvements:  $35,000 to $100,000

  • Building and construction costs will vary depending upon the condition of the premises for the Dog Facility, the size of the premises, local construction costs, and the extent and quality of improvements desired by you over and above the minimum requirements.. This estimate includes construction allowances that may be offered by the landlord.

5.  Initial Inventory:  $12,000 to $30,000

  • You must purchase an initial inventory of pet retail products. Costs vary based upon the size and location of the Dog Facility, suppliers, and other related factors.
  • In general, a Zoom Room Business with greater visibility and longer operating hours will require larger square footage allocated to retail products and therefore a larger investment in initial inventory.

6.  Franchise Starter Package:  $2,700

7.  Office Equipment and Supplies:  $4,380 to $5,080

  • This includes phones, miscellaneous office equipment, and supplies.

8.  Training:  $1,200 to $6,000

  • The franchisor provides training at its corporate office located in Los Angeles, California or at another location designated by it. You must pay for airfare, meals, transportation costs, salaries, benefits, lodging, and incidental expenses for all initial training program attendees.
  • Initial training is provided at no charge for up to 2 people, one of which must be a principal owner; if additional initial training is required, or more people need to be trained, an additional fee may be assessed.
  • This estimate includes the travel and living expenses including airfare that you will incur when you and one other person attends the initial training program. It does not include any wages or salary for you or your employees during this training.

9.  Signage:  $4,000 to $9,500

  • The type and size of the signage you actually install will be based upon the zoning and property use requirements and restrictions. There could be an occasion where signage is not permitted because of zoning or use restriction.
  • The signage requirements and costs will vary based upon the size and location of the Dog Facility, local zoning requirements, landlord requirements, and local wage rates for installation.

10.  Furniture, Fixtures, and Equipment:  $17,005 to $28,880

  • This includes computer hardware and software, POS, agility equipment, seating, tables, and other furniture and equipment necessary to begin the operations of your Zoom Room Business.

11.  Grand Opening:  $1,500 to $5,000

  • You must spend a minimum amount of $1,500 prior to the opening of the Zoom Room Business.

12.  Licenses, Permits, and Subscriptions:  $350 to $8,500

  • State and local government agencies typically charge fees for occupancy permits, operating licenses, and construction permits. Your actual costs may vary from the estimates based on the requirements of state and local government agencies.
  • This estimate also covers any national organizations that the franchisor may require you to join.

13.  Professional Fees:  $2,000 to $10,000

  • You may need to employ an attorney, accountant, or other consultants to assist you in establishing your franchise. These fees may vary from location to location depending on the prevailing rates of local attorneys, accountants, and consultants.

14.  Client Management Software Fees:  $400

  • There is a one-time set-up fee of $400, and a recurring weekly fee of $17.50 which may increase on subsequent one-year anniversaries. This estimate includes 3 months of service fees. Ambrosio’s note: The one-time set-up fee of $400 plus 3 months of service fees (at $17.50 per week) exceed the $400 estimate provided in no. 14.

15.  Insurance:  $650 to $2,000

  • You must obtain and maintain, at your own expense, the insurance coverage that the franchisor requires, and satisfy other insurance-related obligations.

16.  Additional Funds (3 months):  $10,000 to $35,000

  • This estimate includes your initial start-up expenses (other than the items identified separately in the table) during the Zoom Room Business’s first 3 months of operation. These expenses include payroll costs during the Zoom Room Business’s operation, but not any draw or salary for you.
  • These figures are estimates and the franchisor cannot guarantee that you will not have additional expenses starting the business.

17.  Total Estimated Initial Investment:  $135,935 to $307,860

  • The franchisor relied on the experience of its officers and affiliates in operating businesses similar to the type offered under this Disclosure Document, and its franchisees.

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