Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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Franchise Costs: Detailed Estimates of Halloween Express Franchise Costs (2013 FDD)

by Franchise Chatter on March 4, 2014

in Franchise Costs, Retail Franchise, Seasonal Franchise

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Detailed Estimates of Halloween Express Franchise Costs Based on Item 7 (Estimated Initial Investment) of Halloween Express’ 2013 Franchise Disclosure Document

1.  Initial Franchise Fee:  $10,000

2.  Travel and Living Expenses While Attending Initial Training:  $1,000 to $2,500

3.  Lease Deposit:  $1,000 to $10,000

  • Halloween Express FranchiseThe figures shown assume you will lease commercial space, and do not include any estimate for the purchase of real estate. The “low” and “high” estimates are calculated on a percentage lease.
  • The amount of deposit you must pay will vary depending on the cost for suitable commercial space in the area in which you will locate your Halloween Express store and your credit rating.

4.  Equipment and Furniture:  $4,000 to $15,000

  • The equipment and furniture necessary for the operation of a Halloween Express store includes all office furniture, office and store equipment, and miscellaneous other items, many of which may be leased.

5.  Initial Inventory:  $120,000 to $180,000

  • Opening inventory of products and supplies will vary based on expected volume of business, credit worthiness, and size of storage areas in the leasehold.
  • Credit status with vendors will vary from C.O.D. to Halloween Dating, which is payable in November.

6.  Marketing:  $10,000

  • This estimate is for local marketing and will vary depending on the city, state, and location of your Halloween Express store. This estimate does not include any extraordinary initial marketing expense for obtaining employees and informing the community of your business opening.

7.  Signs:  $250 to $1,000

  • This estimate includes both interior and exterior signs that may or may not bear proprietary Marks licensed to you by the franchisor. The cost of signs may vary depending on the type, size, and location of the signs, and may also be affected by applicable government restrictions.

8.  Other Deposits:  $0 to $1,000

  • Estimated costs for telephone and utility deposits, which will vary depending on the location of your Halloween Express store and your credit rating.

9.  Insurance:  $250 to $1,200

  • The estimated cost of annual premiums for the policies required by the terms of the Franchise Agreement will vary significantly based on your location, and the claims experience of commercial businesses in the area, as well as your claims experience in other businesses you operate.

10.  Professional Fees and Licenses:  $500 to $2,000

  • You may hire a lawyer and accountant to assist you in establishing your business. The franchisor has included estimates of the legal, accounting, and administrative fees, as well as other local licenses in the chart.
  • The amounts will vary depending on the hourly rates charged by these professionals in your area and the amount you rely on them in establishing your business.

11.  Operating Cash:  $10,000 to $20,000

  • This amount of operating cash is estimated to cover usual operating expenses (including rent) until a sustained level of positive cash flow is attained, which is estimated to be 2-3 weeks. However, the franchisor cannot guarantee that this amount will be sufficient.

12.  Additional Funds – 1 Month:  $3,000 to $5,000

  • This estimates your initial start-up expenses. These expenses include payroll costs. These amounts are in addition to those described previously in this chart. Due to the seasonality and short-term nature of each season, the franchisor has included amounts for the first month only.

13.  Retail Inventory Control System:  $10,000

  • The estimate is based on current equipment specifications and includes the necessary computer hardware and software to operate the system. You must purchase and install the point-of-sale computer and electronic cash register equipment in accordance with the franchisor’s specifications.

14.  Total Investment:  $170,000 to $267,700

  • The figures are based on the experience of the company’s franchised stores. Neither the franchisor nor its affiliates offer any financing for your initial investment.

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