Detailed Estimates of Plan Ahead Events Franchise Costs Based on Item 7 (Estimated Initial Investment) of Plan Ahead Events’ 2014 Franchise Disclosure Document
- A Plan Ahead Events franchise provides event planning and management services.
1. Initial Franchise Fee: $34,500
- All franchisees purchasing a franchise pay an initial franchise fee of $34,500. The franchise fee is used by Plan Ahead Events, in part, for costs incurred in providing initial training and providing the software, supplies, and other items included in the Software and Supplies Package. Plan Ahead Events does not offer financing for this fee.
- Prior to executing the Franchise Agreement, you will be required to pay a $5,500 deposit, commonly referred to as a “binder,” to reserve your Designated Marketing Area while you are investigating the purchase of this franchise. The binder is fully refundable if you do not purchase a franchise.
- When you enter into your Franchise Agreement, the initial franchise fee (less the binder already paid) is due. The initial franchise fee is non-refundable.
- Eligible United States miliatry veterans will receive a discount equal to 10% of the standard franchise fee. An eligible veteran is a veteran who has received an honorable discharge.
- Prospective franchisees who have worked in the event planning and management industry for at least 5 years will receive a discount equal to 10% of the standard franchise fee or transfer fee.
- Prospective franchisees who have been operating their own event planning and management business for at least the past five years and convert their business into a Plan Ahead Events franchise will receive a discount of 50% of the standard franchise fee.
- Existing franchisees purchasing a second Designated Marketing Area shall pay an initial franchise fee of $17,500.
- Owners in good standing of Plan Ahead Events’ affiliated brands (Sign*A*Rama, EmbroidMe, Billboard Connection, and TBA) purchasing a Plan Ahead Events franchise will pay a franchise fee of $17,500.
- An owner of one of these affiliated brands and prospective franchisees with event planning and management experience who pay a discounted fee will have to purchase some of the items listed in the Software and Supplies Package at a cost of between $3,500 to $6,000.
2. Travel and Living Expenses While at Training School: $105 to $245
- Plan Ahead Events provides your transportation to the company’s Florida Corporate Headquarters where it holds its training. Plan Ahead Events also provides your hotel accommodations and one daily meal.
- The only cost that you will incur will be for your other daily meals and your entertainment. These costs will vary depending upon your requirements.
- If you bring additional persons to the training program, you will pay $200 per person attending and you will be responsible for their travel and hotel expense.
3. Advertising Fund Initial Membership Fee: $500
4. Software and Supplies Package: $0 to $6,000
- If you are purchasing a new franchise or an existing agency, the Software and Supplies Package is included in your initial franchise fee of $34,500.
- If you are an existing owner of one of the affiliated brands’ franchisees or you have previous event planning and management experience and qualify for a discounted franchise fee, you will need to purchase some of the items included in the Software and Supplies Package. The cost of these items will range from $3,000 to $6,000 depending on your needs.
5. Equipment and Software: $0 to $3,000
- To operate your agency, you will need to have the computer hardware and software described in Item 11. The cost of acquiring these items will range from $0 to $3,000 depending on your needs.
6. Insurance: $750 to $2,000
- You are obligated under the Franchise Agreement to hold certain business insurance policies including a comprehensive general liability policy including errors and omissions coverage, a policy covering “all risk” of physical loss, and additional policies as may be required under your local laws or ordinances.
- The amount listed above reflects Plan Ahead Events’ estimate of basic insurance for your first six months of operation. Your expenses will vary depending on your exact requirements as dictated by local insurance rates.
7. Additional Funds (0 to 6 months): $10,000 to $25,000
- You will need capital to support your ongoing expenses to the extent that these costs are not covered by sales revenue when you first open. This figure does not include sums necessary for living or personal expenses nor payments for your debt service.
- New businesses often generate a negative cash flow for a time. Plan Ahead Events estimates the amount given will be sufficient to cover on-going expenses for the start-up phase of your business that it calculates to be up to 6 months.
- However, this is only an estimate and Plan Ahead Events cannot assure you that additional capital will not be necessary during your start-up phase.
- Your costs will depend on factors such as how much you follow Plan Ahead Events’ systems and procedures, your management skills and experience, your business skills, local economic conditions, the prevailing wage rate, the local market for the Plan Ahead Agency, competition, and sales levels reached during the start-up phase.
8. Totals: $45,855 to $71,245
- You are cautioned to allow for inflation, discretionary expenditures, fluctuating interest rates and other costs of financing, and other local market conditions, which can be highly variable.