Profile Franchise Costs: Estimated Initial Investment (Item 7, 2022 FDD)
For a Stand-Alone Store
1. Initial Franchise Fee: $49,500
2. Profile Start-Up Kit: $112,500 to $134,500
- The Profile Start-Up Kit includes equipment, computer equipment, furnishings, and fixtures to start the franchised business.
- The equipment, such as scales, body scanning equipment, and software, is used to monitor a customer’s weight. There is currently no exercise equipment.
- Profile, its affiliate, or its designated vendors may be the only source for these items. The Profile Start-up Kit is currently purchased from Profile’s affiliate, Profile Products, or its designee(s).
3. Initial Product Inventory: $15,000 to $20,000
- You must purchase from Profile or its affiliate or designee your initial product inventory that Profile specifies.
- The product inventory, meals, and other food items are currently all purchased from Profile’s affiliate, Profile Products, but some may be purchased from third-party vendors.
4. Exterior Signage: $9,000 to $13,000
- You must purchase from Profile or its affiliate or designee one exterior sign, monument signage, and reserved parking signs that Profile specifies.
- The exterior signage, monument signage, and reserved parking signage are currently purchased from Profile’s affiliate, Profile Products, but some may be purchased from third-party vendors.
- Additional signage is at the owner’s discretion.
5. Specific Build-out Materials: $20,500 to $29,500
6. Real Estate Leasehold Improvements: $93,000 to $160,000
- The costs of construction and leasehold improvements depend upon the size and condition of the premises, the nature and extent of required leasehold improvements, the local cost of contract work, and your location.
- In some cases, your landlord may agree to pay for some of the leasehold improvements as part of your lease negotiations.
- The figures in this table include a reasonable and customary amount net of tenant improvement allowance.
- Profile must approve your site selection before you develop your store.
- Profile requires a number of mandatory provisions in your lease agreement, and you and your lessor must sign an addendum to your lease in the form attached as Exhibit G, or other form that Profile approves.
- The contract for the build-out will be between you and the general contractor, and Profile’s internal development management team will provide space planning assistance and construction coordination services.
- The estimated costs for the specific build-out materials consisting of the flooring, lighting, and graphics that Profile designates are included in the low/high range.
7. Store Rent: $5,000 to $19,500
- The rent figures represent estimated three months’ rent. Stand-alone store rent estimate assumes 1,500 square feet at approximately $13 PSF on the low range and approximately $52 PSF on the high range. These figures represent base rent plus NNN expenses (Property Taxes, Insurance, and other operating expenses that may be charged by your landlord).
- The rental expense may vary widely based on geographic location, size of the premises, local rental rates, and other factors.
- A typical stand-alone store occupies from 1,200 to 1,500 square feet of commercial space, and a typical in-facility store occupies from 500 to 600 square feet of commercial space.
- For an in-facility store, rent may be in the form of a flat rate or a percentage of gross sales.
8. Lease and Utility Security Deposits: $1,000 to $9,500
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- Landlords may require a last month’s rent and security deposit, and utility companies may require that you place a deposit before installing telephone, gas and electricity, and related utility services.
- A typical utility security deposit is one month’s expense. A typical lease deposit will be an amount equal to one month’s rent.
- These deposits may or may not be refundable according to the conditions of the agreements made with the utility companies and landlord.
9. Initial Promotional Campaign: $45,000 to $90,000
- You must conduct an initial promotional campaign that complies with Profile’s standards.
- The minimum amount required to be spent is $45,000 for a stand-alone store and $30,000 for an in-facility store.
10. Insurance: $2,000 to $4,000
- Estimated three months’ premiums for insurance that Profile specifies.
- Third parties, such as landlords, Medicare, and medical insurance carriers, will have their own requirements. Their requirements and Profile’s will change over time.
11. Training-Related Expenses: $2,500 to $6,000
- You must make arrangements and pay the expenses for you and your staff to attend Profile’s training program, including transportation, lodging, and meals.
- Your costs will depend, in part, on the distance you must travel and the type of accommodations you choose.
- The high figure represents the estimated cost of airfare to and from the training locale, lodging expenses (assuming double occupancy for five nights), and dining expenses for five people attending four and a half days of training.
- The low figure assumes the five individuals will carpool from home to the training locale in the same vehicle, and includes fuel costs, lodging expenses (assuming double occupancy for four nights), and dining expenses.
12. Professional Fees: $1,000 to $12,000
- Profile recommends that you engage your own attorney to help you evaluate this franchise offering, to identify the laws and regulations that may apply to your franchised business, to help you set up a business entity, to review and negotiate your lease, to assist you in adapting the membership agreement to laws and regulations in your state or locality, and for whatever other purpose you deem appropriate.
- You may also desire to engage a lease consultant, an accountant, and other professionals.
13. Architectural and Engineering: $12,500 to $16,000
- You must sign an architectural agreement with Profile’s vendor to provide architectural and engineering services. The amount of the agreement is an estimate only; your actual costs will vary depending on local and state permitting agencies.
- The scope of the architectural agreement includes all architectural and engineering services required to produce a set of construction documents, manage the permitting process, and provide construction administration on a time and materials basis.
14. Licenses: $500 to $2,500
- This is an estimate of various licensing fees you may pay in your first three months of operation, which may include music licensing, software licenses, state health center or health membership club registration and bonding, and state and local business licenses.
15. Additional Funds (3-Month Period): $30,000 to $90,000
- This is the estimated amount of working capital you will need to cover other initial operating expenses for a period of three months. These figures are estimates, and Profile cannot guarantee you will not have additional expenses starting the business, or that you will ever achieve profitability. These figures do not represent an expected period to break-even on your store.
- If you are not profitable or have low net cash flow, your working capital needs will be higher.
- Expenses not included are rent and other estimates in other rows in the chart above, and owner draw, profit, or salary, and interest or other cost of debt or equity financing.
- To compile this estimate of additional funds, Profile relied on its affiliates’ experience in operating similar businesses. The factors and basis for such estimate will vary from location to location, including such factors as location, demographics of surrounding area, competition, and your skills and effort.
16. Total Estimated Initial Investment: $399,000 to $656,000
For an In-Facility Store
- The total estimated initial investment necessary to begin operation of a Profile in-facility store ranges from $197,000 to $376,700.