This post was updated on September 15, 2015 to reflect information from ACFN’s 2015 FDD (Item 7).
Detailed Estimates of ACFN ATM Machine Franchise Costs Based on Item 7 (Estimated Initial Investment) of ACFN’s 2015 Franchise Disclosure Document
1. Initial Franchise Fee: $25,000
- The initial franchise fee is $25,000. Under certain circumstances, however, ACFN may offer a reduced initial franchise fee to qualifying existing ACFN franchisees. ACFN may finance up to $10,000 of the initial franchise fee.
2. Signs: $0 to $200
- Business signs should be minimal because of the nature of this business.
3. ATMs and Other Equipment and Supplies: $5,055 to $15,470
- The estimated cost for each ATM is $4,560, including a low topper sign and economy shipping in the 48 contiguous states.
- The low-end figure assumes that you will purchase one ATM, an extra cash cassette (currently $495), no wireless units, and no ATM cabinets before you begin operations.
- The high-end figure assumes the purchase of 3 ATMs with an extra cash cassette before you begin operations, possibly one ATM cabinet (currently $995, which includes shipping in the 48 contiguous states), and possibly one wireless unit for one ATM (currently up to $300).
- ACFN assumed only one ATM cabinet in the high-end figure because ATM cabinets are not required by the franchisor and are only required by a minority of current host location owners.
- In addition, ACFN assumed no wireless units in the low-end figure and only one wireless unit in the high-end figure because wireless units are not required for all host locations, but only those that elect the wireless option.
- Sales tax is charged separately by each state and is not included in these estimates. You are responsible for paying all applicable sales tax.
- You will incur additional fees for shipping to Alaska or Hawaii.
- If you are a new franchisee who enters into a Purchase Agreement with ACFN or its affiliate for the purchase of existing ATMs and locations, you will pay to ACFN or its affiliate the agreed upon Corporate ATM Acquisition Fee instead of the fees described above.
- Because the amount of the Corporate ATM Acquisition Fee will vary based on a number of factors, it is difficult for ACFN to provide a meaningful range for these fees. ACFN anticipates, however, that if you were to purchase 3 existing ATMs and locations from it or its affiliates, the amount of the Corporate ATM Acquisition Fee would exceed the $15,470 high-end figure.
4. Additional Capital Required for ATMs: $7,000 to $21,000
- This represents the required cash inventory for each ATM, which is estimated to be $7,000.
5. Office Equipment and Supplies: $200 to $1,200
- The low end of this range is the estimated cost of the required cell phone/voice mail system, but does not include any costs of a personal computer, printer, copier, and fax machine, as most franchisees will already have a version of these items that complies with the required standards.
- The high end of this range includes the estimated cost of the required cell phone/voice mail system ($200), plus the cost to purchase a personal computer, printer, copier, and fax machine that complies with the required standards, which ACFN estimates to be $600 to $1,000, depending on the brand and model of the items you select and the software you purchase.
6. Initial Local Marketing Expense: $200
- You should allocate $200 for gas costs and other expenses in conducting initial local marketing for your ACFN business.
7. Insurance: $700 to $900
- This represents an estimate of the first year premium for general business liability and property/casualty insurance.
8. Professional Fees and Licenses: $550 to $650
- Professional fees include setting up an accounting system and business licenses.
9. Initial Training Fee and Expenses: $1,195 to $1,695
- The initial training fee for your Managing Owner and up to one other person is $995 and is included in the chart above.
- You also must pay for related travel expenses, hotel accommodations, meals, and other expenses for your Managing Owner and any other training attendees during initial training, which ACFN estimates to be $200 to $700 or more, depending on the number of attendees.
10. Additional Funds – 3 Months: $500 to $1,500
- Additional funds is an estimate of the amount of cash required to cover any operating expenses during your first 3 months of operation.
11. Total: $40,400 to $67,815
- ACFN relied on its 12 years of experience, and its affiliate’s 16 years of experience, in the ATM business to compile these estimates. You should review these figures carefully with a business advisor before making any decision to purchase an ACFN franchise.