Updated June 12, 2018.
Detailed Estimates of Mister Sparky Franchise Costs Based on Item 7 (Estimated Initial Investment) of Mister Sparky’s 2018 Franchise Disclosure Document
For Start-Up Franchises
1. Initial Fees: $33,000
- The $33,000 in Initial Fees applies to the franchisee that signs the Franchise Agreement, and that has a Territory whose population is approximately 200,000. Territories may differ in size.
- A Territory of approximately 200,000 is the required minimum size for a new franchisee.
- Some franchisees may be able to finance the Initial Fees.
2. Rent/Lease of Real Estate Property: $3,000 to $13,500
- These numbers anticipate that you will lease a facility. The franchisor estimates the cost per month to lease a 1,000 square foot facility to range from $1,000 to $4,500, and the initial period covers the first three months.
- The estimated initial investment for a start-up franchisee could include the cost of security deposits of one month’s or two months’ rent which may be required by the landlord.
3. Leasehold Improvements: $7,500 to $15,000
- You will need to install wiring for communications systems that comply with the franchisor’s specifications — high speed ASP compatibility, e-mail, and exclusive phone and fax lines.
- The interior of your facility must have clean carpeting, ceiling structure, walls, etc.
4. Computer Systems: $2,250
- You will need a computer (including peripheral devices, such as monitors and printers) with internet access and e-mail capability, telephone, and dedicated fax machine.
5. Software: $1,810 to $4,360
- You will have to install SuccessWare21 (ASP Option) software (and all other software the franchisor designates for use in your Franchised Business) within three months after the franchisor designates this use.
6. Office Furniture and Equipment: $500 to $5,000
- You will need desks, shelving, seating, copy machines, and other office furniture and equipment.
7. Machinery, Tools, and Equipment: $1,500 to $10,000
- You will need to equip your trucks with machinery, tools, and other equipment. The Operations Manual provides a list of recommended machinery, tools, and other equipment purchases.
8. Trucks: $40,000 to $90,000
- You must own, lease, or buy at least two trucks that are operable and meet the requirements in the Operations Manual and are less than seven years old.
- Trucks cost from $20,000 to $45,000 each if purchased.
9. Signage for Trucks: $7,000 to $10,500
- You must paint or wrap your truck and add signage. The franchisor estimates this cost to be approximately $3,500 per truck.
10. Office Signage: $2,500 to $3,000
- You must identify your office by the Licensed Marks with approved signage.
11. Yellow Pages, Internet-Based Pay Per Click, Direct Response, and Radio: $6,000 to $33,000
- You must be represented in the local Yellow Pages or comparable telephone directory, including both print and internet-based directories, if available, covering your Territory as soon as possible after opening your Franchised Business.
- You must conduct extensive advertising before and just after opening your Franchised Business.
- The costs for these items are approximately $1,000 to $3,000 per month for Yellow Pages or comparable telephone directory, approximately $4,000 for direct response marketing, and approximately $8,000 per month for radio advertising.
- The franchisor recommends that you spend at least 8% to 12% of Net Sales each year on advertising, including methods (commonly referred to as “Pay Per Click”) to promote internet traffic to your Franchised Business.
12. Initial Promotional Inventory: $1,000
- The franchisor recommends you purchase promotional items, including stickers, magnets, and other logo emblazoned items, announcing your new affiliation with Mister Sparky. It should cost approximately $1,000 to purchase an opening stock of promotional items.
13. Travel Expenses for Initial Classroom Training: $1,100 to $3,300
- The franchisor provides you with the Training Program at no charge, but you must pay for transportation, lodging, and meals for Owner(s) and any senior management level employees who attend classroom training, and you will have to pay the wages of your senior management level employees.
- These estimates are for two senior management level employees and an Owner.
14. Travel Expenses for Initial Computer Training: $1,100 to $3,300
15. Initial Computer Training: $1,795 to $3,590
- Your senior management level employees and an Owner all have to be trained to use the SuccessWare21 (ASP Option) software.
- The cost is $1,795 for one to two people payable directly to SuccessWare, Inc. For each training course you pay for, a second person may attend the same training course at no additional charge by SuccessWare.
- This estimate is to train two to four people.
16. Initial Vehicle Inventory: $1,000 to $10,000
- You must purchase an opening inventory of supplies for about $1,000 to $10,000 before opening your Franchised Business.
17. Workers’ Compensation Insurance Premium: $2,000 to $4,000
- The franchisor estimates that deposits for insurance for workers’ compensation may be approximately $2,000 per employee per year, with total workers’ compensation premiums of approximately $4,000.
18. Start-up Supplies: $1,000 to $9,000
- You will need to purchase business cards, stationery, invoices, uniforms, and patches from approved suppliers. Also, you will need to purchase basic office supplies.
19. Insurance: $2,000 to $20,000
- The franchisor estimates that you may have other insurance costs, for instance: general liability (approximately $4,000), vehicles (approximately $4,000), health (approximately $12,000).
20. Truck Registration Fees: $800 to $1,500
- You will need to register your two trucks with the state and local motor vehicle authorities.
21. Decals for Consumer Units: $500
- You will need to purchase and maintain a supply of decals with the Mister Sparky logo and phone number to attach to consumer units you service or install.
22. Phone Facts: $0 to $62
- You must obtain and utilize a new telephone number for the Franchised Business through Phone Facts, which is a national telephone, caller analytics, and recording system the franchisor or one of its affiliates has organized for franchisees through a BuyMax vendor the franchisor designates.
- Rates are set by the vendor, and may be adjusted from time to time, but the franchisor estimates they are currently $20.50 each month for each telephone line.
23. Additional Funds for 1-3 Months: $50,750 to $125,750
- You will need to have sufficient additional capital to cover ongoing expenses, such as salaries for approximately two employees and yourself, and the expense of uniforms and drug testing for your employees.
- The estimate given is the amount of additional funds the franchisor estimates you will need to cover these expenses during the first three months.
24. Totals: $168,105 to $401,612