Detailed Estimates of BlueGrace Logistics Franchise Costs Based on Item 7 (Estimated Initial Investment) of BlueGrace Logistics’ 2015 Franchise Disclosure Document
1. Initial Franchise Fee: $82,500 for a National Franchise, or $22,000 to $38,000 for a Territory Franchise
2. Construction, Leasehold Improvements, Furniture, and Fixtures: $0 to $20,000
- While construction or build-out of a commercial office is not required, you may elect to customize your office. This estimate is for the costs for the improvement, furniture, and fixtures of a commercial space for your Franchised Business, with between 1,000 and 1,500 square feet of space.
- The difference in the low and the high improvement cost estimates is due to the difference in size of the location. The estimates are applicable to a site which has been obtained in the “vanilla box” stage.
- If you elect to install a building sign on the leased premises the estimated cost is approximately $1,000 to $2,000.
- These numbers are not inclusive of any architect fees or other fees charged by licensed professionals (other than general contractors and licensed tradesmen) to perform subsequent installation of electrical, plumbing, and HVAC (heating, ventilation, air conditioning) suitable to the requirements of the Franchised Business and do not include any financial contributions by a landlord.
3. Office Equipment: $500 to $2,000
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- You may have to purchase or lease office furniture and any equipment necessary for providing the various services offered by the Franchised Business, including but not limited to desks, chairs, and office lighting.
4. Computer and Software: $1,000 to $7,500
- This estimate is comprised of the estimated amount necessary to acquire a computer or computers, either laptop or desktop, with approved hardware and software specifications including, but not limited to, customer relationship management software, an accounting software package, and accompanying facsimile/copy/printer machine.
5. Rent: $2,000 to $8,000
- This estimate represents rent for 3 months and a security deposit equal to one month of rent. The low estimate represents a 1,000 square foot facility while the high estimate represents a location with 1,500 square feet.
6. Utility Deposits: $500 to $1,000
- A credit check may be required by the issuing company prior to the initiation of services, or a higher deposit required for first time customers.
7. Insurance Deposits and Premiums: $1,500 to $2,250
- This estimate is for the cost of deposit to obtain the minimum required insurance listed in the Disclosure Document.
8. Pre-Opening Travel Expense: $1,500 to $3,000
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- This estimate is for the cost for you or your Operating Principal plus one full-time employee to attend the training program. The franchisor does not charge tuition for this training, but you will be responsible for all costs associated with attending the training program for you and your staff.
- You may request that the franchisor provide initial training for additional employees. If the franchisor agrees to provide additional training for additional employees, it may charge you an additional initial training fee.
- The duration of the training program is 5 days.
9. Pre-Opening Labor: $0 to $3,500
- This estimate is for the cost of wages for your employees for the period preceding and during the opening of your Franchised Business. The low estimate represents that you hire no employees and perform all pre-opening labor yourself, and the high estimate represents 2 employees working an average of 40 hours per week for 3 weeks.
10. Professional Fees: $2,500 to $10,000
- These fees are representative of the costs for engagement of professionals such as attorneys and accountants for the initial review and advice consistent with the start-up of a business.
11. Business Permits and Licenses: $500 to $1,500
- The figures represented here reflect the range of expenditure in licenses and permits to open a freight and parcel transportation and shipping company in Florida.
12. Additional Funds – 3 Months: $7,500 to $40,000
- This is an estimate of the amount of additional operating capital that you may need to operate your Franchised Business during a 3-month period that encompasses the opening of your Franchised Business.
13. Vehicle Lease or Payments: Optional
14. Total: $39,500 to $181,250
- This amount is based upon the franchisor’s affiliate’s experience in opening and operating a BlueGrace Logistics business and information it has obtained relating to the construction of a commercial office between 1,000 and 1,500 square feet.