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Earnings Claims of Top Franchises Revealed

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Franchise Costs: Detailed Estimates of Drama Kids Franchise Costs (2016 FDD)

by Franchise Chatter on April 24, 2016

in Child-Related Franchises, Franchise Costs

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Detailed Estimates of Drama Kids Franchise Costs Based on Item 7 (Estimated Initial Investment) of Drama Kids’ 2016 Franchise Disclosure Document

  • The franchisor does not offer direct or indirect financing for these items.
  • Because most franchisees will operate their Drama Kids Businesses out of their residences, this chart does not include estimates for setting up a studio or commercial location.
  • These estimates are based on the franchisor’s experience, the experience of its affiliates, and its current requirements for Drama Kids Franchises.
  • All expenditures paid to the franchisor or its affiliates are uniform and non-refundable under any circumstances once paid.
  • All expenses payable to third parties are non-refundable, except as you may arrange for deposits and other payments.

1.  Initial Franchise Fee:  $24,700

2.  Expanded Territory Fee:  $0 to $13,500

  • You may purchase additional qualifying households, as discussed in Item 5. The low estimate represents zero additional qualifying households. The high estimate represents 30,000 additional qualifying households.

3.  Initial Advertising:  $2,000 to $3,500

4.  Business and Office Setup:  $100 to $2,000

  • This includes a computer and/or printer if not already owned.

5.  Travel, Lodging, and Meals for Initial Training:  $500 to $1,500

6.  Insurance:  $300 to $1,000

  • You must obtain and maintain, at your own expense, the insurance coverage the franchisor requires, and satisfy other insurance-related obligations.

7.  Additional Funds (3 months):  $1,000 to $2,000

  • This estimate includes your initial start-up expenses (other than the items identified separately in the table) during the first three months of operation. These expenses include payroll costs during the first three months of operation, but not any draw or salary for you.
  • These figures are estimates and the franchisor cannot guarantee you will not have additional expenses starting the Drama Kids Business.
  • Additional funds for the operation of the Drama Kids Franchise will be required after the first three months of operation if sales produced by the Drama Kids Franchise are not sufficient to produce positive cash flow.

8.  Total Estimated Initial Investment:  $28,600 to $48,200

  • This is an estimate of your initial start-up expenses for one Drama Kids Franchise. In preparing these estimates, the franchisor relied on the experience of its affiliates that operate Drama Kids Businesses.

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