Detailed Estimates of UBREAKIFIX Franchise Costs Based on Item 7 (Estimated Initial Investment) of UBREAKIFIX’s 2017 Franchise Disclosure Document
- The information below describes the estimated initial investment for a single UBREAKIFIX Business.
- Actual costs will vary for each franchise and each location depending on a number of factors. Payments to the franchisor are not refundable. The franchisor is not able to represent whether or not amounts that you may pay to third parties are refundable.
1. Initial Franchise Fee: $0 to $40,000
- If you sign an Area Development Agreement, you must also pay the franchisor an initial deposit fee equal to $12,500 multiplied by the number of UBREAKIFIX Businesses (excluding the first UBREAKIFIX Business) which you must open, and you will concurrently sign your first Franchise Agreement and pay $40,000 representing the initial franchise fee and $12,500 representing the initial training fee for your first Franchise Agreement.
- When the franchisor accepts the site for each subsequent Business, you will sign a separate Franchise Agreement and pay the franchisor an initial franchise fee of $25,000. However, the franchisor will apply a $12,500 credit from the development fee against the initial franchise fees for the second and each subsequent Franchise Agreement until the development fee is exhausted.
- If you are an Experienced Manager, the initial franchise fee for your first (and each subsequent) UBREAKIFIX Business is $25,000 and you will not pay an initial training fee.
- UBREAKIFIX participates in the International Franchise Association’s VetFran Program. If you are a qualified Veteran, you will receive a 20% discount on the initial franchise fee for the first Franchise Agreement.
- UBREAKIFIX may agree to finance the initial franchise fee or a portion thereof.
2. Initial Training Fee: $0 to $12,500
- UBREAKIFIX may waive the initial training fee for your second or subsequent Franchise Agreement in its sole discretion, if you or your Operating Principal has previously completed the training program to the franchisor’s satisfaction.
3. Initial Parts and Accessories: $10,000 to $18,500
4. Initial Inventory of Equipment, Tools, Supplies, and POS Hardware: $11,800 to $16,600
5. Furniture and Fixtures: $12,000 to $15,000
6. Interior Signage: $2,000 to $3,000
7. Exterior Signage: $2,500 to $8,500
8. POS/Information System: $3,200 to $4,600
- UBREAKIFIX has not included the cost of software maintenance agreements, if any. This figure also does not include any technical support costs associated with operating the hardware or software.
9. Wages, Travel, and Living Expenses During Training: $15,000 to $20,000
- These figures include your costs of travel, food, lodging, and other expenses during your initial 3-week training program. The initial training program will be approximately 48 hours per week of training over a 3-week period.
10. Wages, Travel, and Living Expenses During Site Review: $0 to $1,000
- Upon receiving the information regarding a proposed site, UBREAKIFIX will review the information and either accept or reject the proposed site. UBREAKIFIX will review one proposed site at no charge. However, for the second site it reviews, and for each additional site, you must reimburse UBREAKIFIX for all costs and expenses that it incurs in reviewing the site.
- The high-end estimate above assumes UBREAKIFIX will review two sites. If additional site reviews are necessary, UBREAKIFIX estimates that each one could cost up to an additional $1,000.
- These figures include UBREAKIFIX’s expenses for travel, food, and lodging in connection with each on-site review.
11. Legal and Accounting: $1,000 to $10,000
- If you also sign an Area Development Agreement, UBREAKIFIX anticipates that your legal fees may be larger and range from $1,000 to $10,000.
12. Business Licenses and Permits: $350 to $750
13. First 3 Months Marketing: $0 to $5,500
14. Insurance: $750 to $2,000
15. Rent – 3 Months: $0 to $15,000
16. Security Deposits: $2,000 to $7,500
17. Construction and Leasehold Improvements: $3,000 to $30,000
18. Additional Funds – 3 Months: $0 to $15,000
- The estimate of additional funds for the initial phase of your business is based on your staff salaries and operating expenses for the first 3 months of operations. The estimate of additional funds does not include an owner’s salary or draw.
- The additional funds required will vary by your area; how much you follow UBREAKIFIX’s methods and procedures; your management skills, experience, and business acumen; the relative effectiveness of your staff; local economic conditions; the local market for your products and services; the prevailing wage rate; competition; and the sales level reached during the initial period.
- If you also sign an Area Development Agreement, you should plan and budget accordingly, based on the development schedule listed in your Area Development Agreement. You should plan on incurring additional payroll expenses for training associates for stores that are not open yet.
19. Total: $63,600 to $185,450