Updated May 24, 2020.
Detailed Estimates of Wild Birds Unlimited Franchise Costs Based on Item 7 (Estimated Initial Investment) of Wild Birds Unlimited’s 2020 Franchise Disclosure Document
1. Initial Franchise Fee: $40,000 (new franchisees) or $20,000 (existing franchisees)
- If you sign a Reservation Agreement, you pay $6,000 when you sign the Reservation Agreement, which the franchisor will credit toward the Initial Franchise Fee, and you will pay the remaining $34,000 when you sign the Franchise Agreement.
2. Training: $5,000; $0 if you are an existing franchisee opening an additional franchise
3. Travel, Meals, Lodging: $1,000 to $6,000
- Includes travel, for one or two of you, to the franchisor’s headquarters before you purchase a franchise, and travel and expenses related to the initial five days of training at the company’s headquarters and five days of in-store training at a store near the headquarters or near your home, as the franchisor may determine in its sole business judgment.
4. Lease Deposit: $3,000 to $7,500
- The franchisor encourages you to look for strip center sites or existing structures which could easily be converted into a Wild Birds Unlimited store.
- Lease agreements often require a security deposit equal to one month’s rent.
5. First Month’s Rent: $3,000 to $7,500
6. Leasehold Improvements: $9,329 to $54,748
- The low estimate is for a location that needs little work, and the high estimate for one that needs extensive remodeling.
- The estimates account for the recommendation that you do a substantial portion of the labor, including painting, putting up slat-wall, and positioning fixtures.
7. Insurance: $500 to $2,500
- You must maintain a comprehensive liability insurance policy, including products and contractual liability ($1,000,000), bodily injury liability, and property damage liability ($1,000,000).
8. Legal/Accounting: $750 to $9,750
- This includes the estimated legal and accounting costs associated with setting up your business entity, reviewing the Disclosure Document, accounting costs, and the costs associated with securing financing. This also includes the estimated cost of three months of bookkeeping services from the franchisor’s designated vendor.
9. Office Equipment: $8,494 to $11,949
- This includes the cost of office furniture, scale, front and backroom computers and printers, software, and other equipment you will use in the management of your business.
- This estimate also includes a POS Installation Fee of $3,660 which you must pay to the franchisor and for which the franchisor will provide you with a site visit from a member of its staff or third-party provider to install and train you in the use of the RMS software, including a Point-of-Sale software upgrade for the Daily Savings Club.
- Your first year’s Annual Point-of-Sale Fee is also included in the POS Installation Fee.
10. Signs: $3,800 to $8,600
- The low estimate is based on the use of an existing sign with few modifications. The high estimate is for a new sign, plus installation.
11. Advertising: $7,670 to $12,232
- Advertising costs include pre-opening, opening, grand opening, and the first three months of operation. Advertising costs also include the cost associated with printing in-store handouts.
- If you are opening a new Store, upon signing your lease, you must pay the franchisor $5,000 for advertising expenses associated with the opening and grand opening advertising campaign (the amount is reduced to $2,500 and due upon signing a lease if you are purchasing an existing Store).
- These amounts are reimbursed to you after submission of proof of paid invoices for purchases of advertising materials and media placement from third-party suppliers relating to the opening and grand opening of your Store.
12. Retail Fixtures: $16,842 to $24,905
- Retail fixtures include custom display fixtures that you purchase directly from approve suppliers.
- Fixtures include a binocular case, bird food displays, wooden sales counter and other miscellaneous displays. Other standard fixtures include slat-wall, decorative trim, floor mats, TV/laptop computer, and in-store signs.
- Vendor costs may vary.
13. Opening Inventory: $25,870 to $32,645
- The inventory items generally include bird seed, bird feeders, and gift/garden items. The estimates include merchandise and freight. The cost will vary according to the season, the length of time between birdseed deliveries, and the size of the showroom.
14. Gift Card Fee: $100
- The estimate covers your purchase of 50 gift cards and presenters, as well as display signage.
15. MyWBU Store (ecommerce platform): $1,180
- As of the date of the current Disclosure Document, the MyWBU Store program is required.
- You will pay an upfront fee of $880 upon signing the MyWBU Store (ecommerce platform) Authorization and Participation Agreement ($500 to the franchisor and $380 to its approved vendor for the MyWBU Store sign packet).
- This estimate also includes the first three months of the monthly fees ($100 per month) you will be required to pay the franchisor under the MyWBU Store program.
16. Miscellaneous Expenses: $4,347 to $6,497
- You must pay for licenses from local authorities under local or state statutes, utility deposits, and miscellaneous supplies.
- This expense category reflects expenses for giveaways, labels, internet set-up, uniforms, tools, shopping and seed bags, office supplies, and the Daily Savings Club Customer Loyalty Program.
17. Additional Funds for First 3 Months: $39,500 to $50,500
- The franchisor recommends that you have additional funds available during the start-up phase of your franchise. These amounts are the franchisor’s estimates of the amount needed to cover your expenses for a 3-month period from the date you open for business.
- This estimate includes the estimated cost of hiring 3 part-time employees for services performed before you open and during your first 3 months of operations and also the cost to procure payroll and Human Resources services for this same time period.
- The franchisor recommends you have funds available for a longer time period and 3 months should be viewed as the minimum time you should plan for.
18. Total Opening Expenses: $170,382 to $281,606 for a new franchisee ($145,382 to $256,606 for an existing franchisee)
- These figures are estimates and the franchisor cannot guarantee that you will not incur additional expenses in starting your Store.
- For certain estimated expenses (rent deposit, first month’s rent, leasehold improvements, signs, retail fixtures, opening inventory, miscellaneous expenses, and working capital), the low end of the range reflects a typical 1,200 sq. ft. store and the high end of the range reflects a typical 1,700 sq. ft. store. If the size of your Store will differ from these models, you should adjust your estimate accordingly.
- Additionally, you may choose to purchase items such as a backroom microwave, copier, refrigerator, or other items of convenience that are not necessary to operate your Store. These items are not included in the start-up expenses. Vendor costs may vary.
- The franchisor relies on its more than 35 years of experience and its franchisees’ experience, as well as industry trade data, to compile these estimates.