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Franchise Costs: Detailed Estimates of Navis Pack & Ship Franchise Costs (2015 FDD)

by Franchise Chatter on October 15, 2015

in Franchise Costs, Shipping Franchise

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Navis Pack & Ship San Francisco

Detailed Estimates of Navis Pack & Ship Franchise Costs Based on Item 7 (Estimated Initial Investment) of Navis Pack & Ship’s 2015 Franchise Disclosure Document

Navis Pack & Ship or Handle with Care Packaging Store (Commercial Center) – Remote Operating Period Before Physical Warehouse Opening

  • The following chart represents the estimated initial investment required during the remote operating period, before opening a physical warehouse.
  • These figures are estimates and are based on the development of a 1,500 to 2,500 square-foot leased facility.

1.  Initial Franchise Fee:  $29,950

  • Initial training is included in the initial franchise fee unless you are converting an existing business to a commercial center or assuming the operation of an existing commercial center, in which case you will also pay a conversion training fee or a transfer training and processing fee.

2.  Centralized Freight Billing Deposit:  $750

  • The franchisor collects and retains this deposit to ensure payment by you of centralized freight billing invoices.

3.  Initial Technology License Fee:  $6,250

4.  Computer Hardware and Software:  $1,500 to $2,400

  • You must have your computer and establish Internet access before or at initial training. The monthly cost for a DSL line ranges from $49 to $79 per month. The cost of a standard modem line ranges from $10 to $40 per month.

5.  Insurance:  $1,500 to $2,000

  • You must maintain comprehensive general liability insurance with a limit of not less than $2,000,000 per occurrence and $4,000,000 aggregate.
  • The estimated annual premium for insurance coverage is about $1,500 to $4,000.

6.  Travel, Lodging, and Meals for Initial Training:  $250 to $2,000

7.  New Center/New Owner Marketing Program:  $4,500

8.  Business Licenses, Business Permits, Etc.:  $300 to $500

9.  Additional Funds (1st 2 to 9 months during remote operating period):  $2,000 to $5,000

10.  Total:  $47,000 to $53,350

Physical Warehouse Opening

  • The following chart represents the additional investment required to open a physical warehouse, which is required to occur within 270 days of signing the franchise agreement.

1.  Fixtures:  $2,000 to $5,000

2.  Exterior Signage:  $500 to $3,000

  • Signage includes interior and exterior signs that bear the franchise’s trademarks. The cost for signage will vary based on the type, size, and location of the signs, and may be affected by city codes and other local restrictions.

3.  Construction Services:  $0 to $10,000

  • The estimate assumes standard development based on a leased facility delivered to you in “ready to use” condition. If the leased facility is delivered to you in any condition other than “ready to use,” your build-out costs will be higher.
  • The facilities for commercial centers typically are in industrial areas, where construction services will vary widely, based on size, condition and location, lease terms, and other factors.

4.  Equipment:  $10,000 to $15,000

  • The equipment cost estimate assumes that you finance or lease all rolling stock. Equipment includes pallet jack, forklift, industrial racking, industrial grade digital floor scale, panel saw, foam-in-place system, alarm system with security cameras and video, logo truck wrap, and lift gate truck.
  • It is assumed that a vehicle, forklift, foam-in-place, panel saw, and any other equipment with a value of $3,000 or more will be leased or purchased with financing.
  • The initial lease payments and a 20% down payment on financed equipment, as well as all other equipment purchased for cash, are the amounts reflected in the estimate for equipment and trucks.

5.  Computer Hardware and Software – Additional:  $1,000 to $1,500

6.  Initial Inventory:  $1,500 to $3,000

  • The franchisor recommends that you begin the operation of your commercial center with a specified opening inventory. Opening inventory includes corrugated boxes, corrugated sheeting, plywood, foam-in-place chemicals, power tools, staple guns, various tapes, packing list envelopes, interpak materials, invoice tickets, and mailing labels.

7.  Insurance – Additional:  $2,000 to $4,000

8.  Travel, Lodging, and Meals for Initial Training:  $250 to $3,000

9.  Supplies:  $1,000 to $1,500

  • You will need office supplies, such as telephones, answering machines, calculator, brand labels, telephone connections, business cards, letterhead, etc.

10.  Business Licenses, Business Permits, Etc.:  $200 to $300

  • If you choose to provide expanded services of commercial and household moving and other relocation products and services, you must satisfy all requirements of applicable law for operating a local moving business within the state in which you intend to operate.

11.  Deposits and Pre-Paid Expenses:  $3,500 to $6,000

  • Deposits may vary from location to location. The landlord may require you to pay a security deposit and the 1st month’s rent in advance.

12.  Architect Fee:  $0 to $6,000

  • An architect of your choice may be required to prepare architectural plans meeting local structural, electrical, plumbing, and other construction-related requirements under local building codes, ordinances, or agencies.

13.  Truck:  $3,000 to $6,000

  • You must have at least 1 truck (minimum of 1 ton, 14-foot box truck with a hydraulic lift gate, not more than 5 years old). The estimate assumes that you will initially lease (and not purchase) 1 truck.
  • Used trucks generally cost between $5,000 and $30,000. New trucks generally cost between $30,000 and $50,000.

14.  Miscellaneous Expenditures, Including Commercial Center Lease:  $10,000 to $20,000

15.  Additional Funds (1st 12 months after opening physical warehouse):  $15,000 to $35,000

  • You may need additional funds to operate your commercial center during the 12-month initial period to cover operating expenses that are in excess of typical start-up revenue. These include royalty and marketing fees, as well as expenses for marketing and promotion beginning 90 days after you open a new commercial center or acquire an existing commercial center (a minimum of $750 to $2,000 per month, depending on the season), travel, office supplies, printing, and telephone.
  • Your personal living expenses are not included in this estimate.

16.  Total:  $49,950 to $119,300

  • The range for the total estimated initial investment, including both the remote operating period and the opening of a physical warehouse (both high and low), may be reduced if the remote operating period and the opening of a physical warehouse occur simultaneously (example, duplication of initial training expenses, such as travel and hotel; telephone; Internet; insurance; lost revenue paid to 3rd party pick and pack suppliers, etc.)
  • The franchisor has relied on 28 years of experience operating or franchising businesses of the type being franchised to compile most of these estimates.

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