Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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Franchise Costs: Detailed Estimates of Glamour Shots Franchise Costs (2016 FDD)

by Franchise Chatter on August 27, 2016

in Franchise Costs, Photography Franchise



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Glamour Shots 2

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

For a Standard Inline Glamour Shots Store

1.  Initial Franchise Fee:  $25,000 to $35,000

  • The initial franchise fee is $25,000 if you pay in cash in full when you sign the Franchise Agreement.
  • The franchisor may, at its option, finance a portion of the initial franchise fee. If the franchisor finances a portion of your initial franchise fee, the initial franchise fee is $35,000.

2.  Training Fee:  $750

  • You must complete at least two weeks of training at a Designated Training Store. This fee includes your training at the Designated Training Store and Glamour Camp.
  • The fee is payable at the commencement of training and is non-refundable.

3.  Real Property:  As Agreed Upon

  • Although real property costs will vary depending on the location, a standard store is located in a regional mall or retail strip center and is approximately 800 to 1,200 square feet in size.

4.  Leasehold Improvements, Furniture, Fixtures, and Signs:  $128,000 to $148,000



  • This amount includes the build-out expenses of a standard store in a regional mall location or retail strip center of approximately 800 to 1,200 square feet in size.
  • The types of expenses you should expect to incur are as follows:  architectural fees and plans; mechanical drawings; possible barricade expense; drafting, fees, and permits; possible sprinklers; cabinets and fixtures required by the current store design; waiting and styling chairs; sign and installation; plasma screens for display; lamps and/or special lighting needs.
  • The amount reflected in this Item 7 for a standard store represents the typical amount budgeted for the most recent inline stores built in the system.

5.  Photographic and Studio Equipment:  $7,620 to $8,650

  • Photographic and studio equipment includes all photography and studio equipment necessary to equip your store according to the franchisor’s specifications.
  • Although Candid Color offers this equipment for sale, you may purchase or lease the equipment from any source you wish. The cost of purchasing photographic and studio equipment may vary as a result of price differences between suppliers and shipping distances from suppliers.
  • You will typically pay for these items before the opening of your store or in installments over a period of time, depending on the type of financing arrangements you are able to obtain. The franchisor is unable to estimate the cost and terms of leasing these items from independent third parties.
  • Studio equipment includes items such as the digital camera, lighting, backdrop assembly, backdrops, cables, and other items needed to equip the studio.

6.  Computer Equipment and Software:  $11,850

  • This includes all computer equipment and software necessary to equip your store according to the franchisor’s specifications.
  • The equipment must function and be compatible with the software required under the Franchise Agreement and Software License Agreement.
  • The cost of purchasing computer equipment and related supplies may vary by market pricing and by the vendor(s).

7.  Supplies:  $6,000

  • This classification includes makeup, wardrobe, and accessories and other supplies necessary for you to operate your store. You may select the types and brands of cosmetics, wardrobe supplies, and accessories that you stock.
  • This amount also includes materials for the start-up marketing promotional materials and supplies necessary to equip your store before opening.
  • You will typically pay for these items before opening your store.

8.  Training and Installation Expenses:  $6,000

  • Training expenses include fees and expenses incurred to train you, your manager, and your key employees who may assist in the management of your store in photography, make-up, computer, and sales training.
  • Expenses include the costs of travel, transportation, and meals and lodging that you incur for you and your key employees to attend the Designated Training Store program and Glamour Camp. The total costs will depend upon the mode of travel, the lodging, and the meals that you choose.
  • Lodging expenses will vary by geographic location and the level of accommodations that you choose. IRS per diem rates for lodging range from $128 to $207 per day, and for meals from $57 to $68 per day.
  • Extended stay accommodations may reduce your overall cost.
  • You must also reimburse the franchisor for similar expenses, including training fees that it incurs when it sends representatives to train you and your employees in your store.
  • Installation expenses include fees for services and reimbursement of costs the franchisor incurs for setting up your store.

9.  Opening Advertising and Promotion – 3 Months:  $16,000

  • Opening advertising and promotion includes the minimum media expenditures you must make per month ($4,000) for the first three months of operations, as well as the additional $4,000 of media expenditures you must make for your store’s grand opening advertising and promotional programs. In other words, during the first three months, you must spend at least $16,000 in media expenditures.
  • The amount shown in the chart also includes anticipated expenditures for other general advertising and promotional activities.

10.  Additional Funds – 3 Months:  $5,000 to $35,500

  • The franchisor has assumed that your store will generate revenues during the initial phase of operations (3 months). However, the revenues may not be sufficient to cover all expenses.
  • This number represents an additional amount you may need during this initial phase of operations, including monthly fees that you must pay to the franchisor once your store begins operations, such as the Marketing and Promotional Fund Fee, the Software License Fee, the Software Support and Maintenance Fee, the Equipment Support and Maintenance Fee, and the Glamnet Report Fees.
  • These expenses also include media and advertising expenditures over the minimum amounts the franchisor requires, mall leasing expenses, and possible improvements to the store within a regional mall location.
  • Although the franchisor does not expect that you will install your store in a location that would require improvements, you may choose this option if the desired mall location is advantageous to your entrance into the desired mall.

11.  Total Estimate of Initial Investment:  $206,220 to $267,750



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