Franchise Costs: Detailed Estimates of Skingevity Face and Body Spa Franchise Costs (2014 FDD)

Detailed Estimates of Skingevity Face and Body Spa Franchise Costs Based on Item 7 (Estimated Initial Investment) of Skingevity’s 2014 Franchise Disclosure Document

1.  Initial Fee:  $15,000 to $45,000

• You must pay Skingevity a non-refundable initial fee ranging from $15,000 to $45,000 for a traditional Licensed Business.

2.  Travel and Living Expenses While Attending Initial Training:  $2,500 to $4,000

3.  Real Estate and Leasehold Improvements:  $10,000 to $20,000

• You must obtain and maintain business space that meets Skingevity’s requirements. Leases will vary in rental amounts, terms, amount of space required, tenant improvements required, and security deposit and advance rental.

• If you rent real estate for your premises, you may be liable for the entire term of the lease whether or not your Franchise is successful. You should therefore have your attorney review your lease documents before signing.

• Skingevity will, on request, send a representative to assist you with your acquisition, at your cost.

• If you or your Landlord requests changes from Skingevity’s standard design and/or materials, your costs are likely to be higher. Consider this as you examine possible premises.

• Some landlords will finance improvements by amortizing them over the term of a lease, with a higher rental amount to cover costs. You should be aware of this and estimate your costs accordingly, before you decide on premises.

• If you take over an existing licensed business’s premises, Skingevity may require remodeling, redecoration, etc. in compliance with its specifications and at your cost. This includes but is not limited to furniture, fixtures, interior and exterior paint, and landscaping.

4.  Rent and Security Deposit (3 Months):  $6,000 to $15,000

5.  Equipment:  $50,000 to $300,000

• You must buy equipment that meets with Skingevity’s specifications outlined in Item 8 and your Manuals. Equipment may only be purchased from approved vendors.

6.  Furniture, Office Equipment, and Software:  $15,000 to $50,000

7.  Signs:  $1,500 to $4,000

8.  Licenses and Certifications:  $200 to $600

9.  Grand Opening:  $3,000 to $8,500

• Skingevity recommends, but does not require, that you hold a grand opening, designed for your community and competitive situation. The cost of a grand opening is difficult to estimate with accuracy because of local market factors, including the types of marketing media available, the cost of marketing space or time, and the local competitive situation.

10.  Insurance:  $1,000 to $3,500

• You must purchase and maintain, at your expense, throughout the term of the Franchise Agreement, insurance in the types and amounts Skingevity requires.

• This is an estimate for the first three months’ premiums.

11.  Legal Fees:  $1,000 to $5,000

• You may need an attorney to assist and advice you in setting up your business organization and review contract documents. This estimate does not include any ongoing needs for legal services, in connection with relationships with customers or vendors.

• Depending upon your experience and staffing, you may also need accounting services, which might be extra. This estimate does not include accounting or consulting services.

12.  Opening Inventory of Supplies:  $10,000 to $20,000

13.  Additional Funds (3 Months):  $10,000 to $20,000

• This amount estimates the expenses you will incur during the first three months of Licensed Business operations, including initial wages and fringe benefits, software license fees, supplies, and interest payments on any business loans. It does not include your compensation during this three month period.

14.  Total:  $125,200 to $495,600

• This total is based on Skingevity’s estimate of nationwide average costs and prevailing market conditions. These figures are estimates only and Skingevity cannot guarantee that you will not have additional expenses in starting or operating your Licensed Business.