Franchise Costs: Detailed Estimates of Just a Buck Franchise Costs (2015 FDD)

Detailed Estimates of Just a Buck Franchise Costs Based on Item 7 (Estimated Initial Investment) of Just a Buck’s 2015 Franchise Disclosure Document

1.  Initial Franchise Fee:  $25,000

• Just A Buck offers a special discount of 10% off the initial franchise fee for all veterans of the U.S. armed forces.

2.  Site Development Fee:  $7,500

3.  Turnkey Services Fee:  $0 to $9,950

4.  Lease Deposit:  $500 to $10,000

• Although you may purchase or lease real estate in which to operate your Store, Just A Buck anticipates that you will lease a location for your Store. Its stores typically occupy approximately 3,000 to 3,500 square feet of commercial space, and are typically located in major retail areas both in enclosed malls and in outside strip malls.

• Some landlords require no security deposits; others typically require nominal security deposits or security deposits equal to one or two months’ rent.

5.  Leasehold Improvements:  $9,000 to $50,000

• The range in this category reflects an estimate for layout and construction build-out costs for a complete Just A Buck Store.

• If the franchisor does not provide construction management services, you will need to hire a general contractor. The $50,000 figure includes Just A Buck’s estimate for hiring a general contractor.

6.  Architectural Plans:  $0 to $1,500

7.  Training Fee:  $3,500

8.  Racks/Displays:  $11,000 to $17,000

• You must purchase racks or displays sufficient to properly merchandise your Store, as described in the Operations Manual. This category represents a typical 3,000 to 3,500 square foot leasehold location.

9.  Cash Register System:  $1,100 to $1,368

• The range in this category reflects the estimated cost of purchasing a 6-unit cash register system from or through Just A Buck.

10.  Office Supplies & Miscellaneous Equipment:  $2,750 to $3,500

• This estimate may not accurately reflect the cost of supplies and office equipment if you purchase these items from a third-party supplier.

• If Just A Buck provides construction management services, the cost of supplies and equipment is non-refundable. The cost of these items may be refundable if you purchase them from another supplier.

• This category does not include the estimated cost of purchasing computer hardware or software.

11.  Computer and Proprietary Software:  $3,500 to $4,000

12.  Equipment and Store Supplies:  $3,000 to $4,000

13.  Security and Entertainment Systems:  $1,300 to $1,800

14.  Permits and Licenses:  $125 to $450

15.  Interior Graphics and Signage:  $4,200 to $6,500

• The cost of exterior signage and interior graphics will depend on the size and location of your Store, your landlord’s particular requirements, local and state ordinances and zoning requirements.

• The estimated range reflects your estimated costs if Just A Buck provides construction management services.

16.  Prepaid Insurance Premium:  $4,500 to $6,000

• Typically, you will be required to pay your insurance carrier or agent a full annual premium which Just A Buck estimates to range from $4,500 to $6,000.

17.  Utility and Telephone Deposits:  $500 to $1,250

18.  Initial Inventory:  $65,000 to $80,000

• The range in this category includes the cost of your initial opening inventory which Just A Buck orders from System Suppliers on your behalf. You must purchase all inventory for sale at the Just A Buck Store from System Suppliers as the franchisor prescribes.

• The cost of pre-opening initial inventory shipments must be prepaid; invoices for subsequent shipments of inventory will be due and payable within 30 days of the date of shipment, or as Just A Buck otherwise directs.

19.  Additional Funds for 3 Months:  $30,000 to $50,000

• Just A Buck anticipates these additional funds will be necessary to pay operating expenses such as employee salaries, rent, and miscellaneous costs during the first 3 months after grand opening.

• Just A Buck included living and travel expenses of approximately $1,000 per person for 2 persons, excluding airfare, attending the initial training program.

• These estimates are based upon the collective experience of its affiliates and franchisees in opening and operating Just A Buck Stores generally.

20.  Total:  $172,475 to $283,318

• The ranges described in the chart for Leasehold Improvements, Racks/Displays, and Office Supplies and Equipment reflect the cost estimates assuming that Just A Buck provides construction management services.

• You are not required to engage Just A Buck to provide construction management services, and may hire your own general contractor to provide construction assistance. If Just A Buck does not provide construction management services, the franchisor estimates that your initial investment costs will be higher.