Detailed Estimates of Woodcraft Franchise Costs Based on Item 7 (Estimated Initial Investment) of Woodcraft’s 2016 Franchise Disclosure Document
1. Initial Franchise Fee: $25,000 to $50,000
2. Computer System Support Fee: $1,800 to $2,400
- This fee will vary depending upon the number of checkout registers in your Woodcraft Retail Store.
3. First Month’s Rent: $0 to $10,000
- You must provide a site from which to operate your Woodcraft Retail Store. Normally, a site is obtained on a leasehold basis.
- This estimate is based on one month’s rent for a space of approximately 6,500 to 7,000 square feet.
- There may be other lease acquisition costs such as prepaid rent and security deposits. It is extremely difficult to estimate lease costs because of the wide variation in costs between locations.
4. Security Deposits: $9,000 to $10,000
- Security deposits generally are required by utilities, the landlord, and equipment lessors. Amounts will vary depending on the requirements under the various leases, utilities’ policies, and your credit rating.
5. Initial Inventory: $280,000 to $300,000
- The amount of your investment attributable to the initial store inventory will vary depending upon the size of your store.
- Approximately $5,000 of this amount is for Branded Products.
- Payments are due according to the suppliers’ policies and requirements.
6. Leasehold Improvements: $10,000 to $50,000
- Certain leasehold improvements are generally required. These costs will vary based on the size of the facility, local material costs, and labor costs.
- Examples of the types of leasehold improvements include electrical, plumbing, flooring, and general finish-out (except for fixtures as described below) of the leased premises.
7. Furniture and Fixtures: $50,000 to $70,000
- This fee includes the furniture and fixtures necessary to outfit your Retail Store. Amounts may vary due to transportation costs, availability, and installation costs.
8. Insurance: $3,000 to $10,000
- The estimated cost covers the first year’s insurance premium for required coverages for business liability insurance. This amount may vary based on location, prior loss history, costs of build-out, and the amount of inventory you carry.
9. Training Expenses: $1,000 to $3,000
- You are responsible for arranging transportation and paying the living expenses for yourself and any other persons attending the Initial Training Program. These costs may vary based on the distance you travel and the type of accommodations you choose.
- The estimate contemplates attendance by two persons traveling to the franchisor’s headquarters for approximately two weeks.
10. Grand Opening Advertising: $25,000
- You will need to advertise locally to help establish recognition in your local trade area.
11. Signage: $6,000 to $9,000
- This fee covers the cost of interior and exterior signage for a typical Woodcraft Retail Store. Costs may vary depending on local materials and labor costs.
12. Office Equipment and Supplies: $18,000 to $21,000
- This amount includes the Computer System, telephone, facsimile machine, computer, safe, and miscellaneous supplies.
13. Additional Funds for 3 Months: $50,000 to $75,000
- The additional funds is an estimate to cover operating expenses, including employees’ salaries, rent, and utilities, for three months of operation. However, the franchisor cannot guarantee that this amount will be sufficient.
- In compiling this chart, the franchisor relied on Woodcraft Supply’s experience in operating other Woodcraft Retail Stores which operate under a similar concept.
14. Total: $478,800 to $635,400