Detailed Estimates of Drama Kids Franchise Costs Based on Item 7 (Estimated Initial Investment) of Drama Kids’ 2020 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.
- 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: $27,500
- The Initial Franchise Fee for a standard territory with 20,000 to 40,000 qualifying households is $27,500.
2. Optional Expanded Territory Fee: $0 to $30,000
- If you desire to purchase a Franchise with a larger territory, up to 100,000 qualifying households, the Optional Expanded Territory Fee is calculated at a rate of $0.50 per additional qualifying household above 40,000 Qualifying Households.
- The high estimate for the Optional Expanded Territory Fee represents 60,000 additional Qualifying Households for a territory of 100,000 Qualifying Households.
3. Initial Advertising: $4,000 to $8,000
4. Business and Office Setup: $300 to $2,000
- This includes a computer and/or printer if not already owned.
5. Travel, Lodging, and Meals for Initial Training: $500 to $2,000
6. Insurance: $500 to $1,000
- You must obtain and maintain, at your own expense, general liability insurance coverage the franchisor requires, and satisfy other reasonable insurance-related obligations.
- Please note that if you have had prior issues or claims from previous operations unrelated to the operation of a Drama Kids Business, your rates may be significantly higher than those estimated above.
7. Additional Funds (3 months): $1,000 to $3,000
- 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.
- The franchisor’s estimates are based on its experience, the experience of its affiliates, and its current requirements for Drama Kids Franchises.
- 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: $33,800 to $73,500
- This is an estimate of your initial start-up expenses for one Drama Kids Franchise with a standard territory. In preparing these estimates, the franchisor has relied on the experience of its affiliates that operate Drama Kids Businesses.