Detailed Estimates of ProTect Painters Franchise Costs Based on Item 7 (Estimated Initial Investment) of ProTect Painters’ 2015 Franchise Disclosure Document
1. Initial Licensing Fee: $14,900
2. Territory Fee: $30,000
- A DMT will include approximately 25,000 to 30,000 targeted households within a contiguous area.
- All Initial Fees must be paid 7 days before you attend Initial Training.
3. Initial Package: $10,000
- You must purchase the Initial Package from the franchisor, which includes its proprietary Franchise Management Software System, marketing materials, tradeshow display items, public relations package, laptop/tablet computer, printer, trademarked office supplies, stationery, and the $1,000 Convention Allowance.
- If this is a transfer, you must purchase a Transfer Initial Package from the franchisor at a price of $5,405.
- If the agreement that you have with the Seller does not include a tradeshow display and/or computer that meets the franchisor’s specifications or it is more than 2 years old, the cost of the Transfer Initial Package will be increased by the price of the tradeshow display and/or computer.
- There are no refunds, except if you attend the first Convention that is scheduled to occur after your successful completion of the Initial Training Program, $1,000 will be rebated to you as the Convention Allowance. If you do not attend the Convention, it will not be rebated to you.
- Alternatively, the franchisor may rebate a portion of the Convention Allowance after attendance at a Regional Meeting.
4. Office Equipment: $0 to $750
- The amount estimated for office equipment, fixtures, and furnishings includes desks, chairs, a file cabinet, wastebaskets, and other equipment and supplies necessary to begin the operation of the Franchised Business.
- The low estimate is if you already have these items and the high end if you need to purchase them.
5. Vehicle (3 months): $1,500 to $2,500
- Franchised Businesses begin operation with one vehicle that meets System Standards and specifications.
- The approved vehicle list is available on the Internet website, although the franchisor reserves the right to revise the approved model and vendor for any future purchases/leases at any time.
- As your Franchised Business grows, you will need to add additional vehicles.
- The cost of purchasing and outfitting a vehicle typically costs around $24,900, plus applicable taxes.
- The price listed here is the current three month lease price through the franchisor’s approved vendor, and a 48-month term, plus registration, including a maintenance program.
6. Licenses/Deposits: $1,050 to $2,400
- As required by local and state laws and regulations.
- Also includes the initial training and equipment costs for getting certified with the EPA.
7. Travel and Living Expenses While Training: $2,500 to $3,500
- Out-of-pocket travel expenses vary depending on your proximity to the franchisor’s training centers in Ann Arbor, MI, Norcross, GA, and/or other locations determined by the franchisor; the type of transportation you use; and your individual expenses during the Initial Training period of 10 days.
- For the purposes of this Item, the franchisor has estimated training cost for 1 individual.
8. Prepaid Insurance Premiums (3 months): $1,200 to $3,000
- Typically, insurance companies require startup businesses to pre-pay a portion of their premiums. Premiums vary based on the state’s rates for workers’ compensation and general liability policy.
9. Additional Funds (3 months): $13,750 to $23,750
- This item estimates your initial startup expenses for the first three months of operations, not including those expenses identified separately in the table.
- The estimate of additional funds does not include an owner’s salary or draw; it does include basic initial painting supplies, advertising, and a cell phone that has GPS.
10. Totals: $74,900 to $90,800
- The franchisor has relied on the management team’s general experience with franchising in the United States to compile these estimates.