Detailed Estimates of Mainstream Boutique Franchise Costs Based on Item 7 (Estimated Initial Investment) of Mainstream Boutique’s 2017 Franchise Disclosure Document
1. Initial Fee: $12,000 to $35,000
- The Initial Fee for your first Mainstream Boutique Business will be $35,000; you will pay an Initial Fee of $18,000 for any subsequent Business at the time you sign an additional Franchise Agreement.
- Existing franchisees that sign an additional Franchise Agreement by February 19, 2018 will pay a further reduced Initial Fee of $12,000.
2. Initial Inventory: $20,000 to $25,000
- During the training program that Mainstream provides, you must place an order to purchase an initial inventory of clothing and accessories from various suppliers for your Mainstream Boutique Business.
- The amount of the initial inventory necessary to commence operations of your Business ranges from $20,000 to $25,000, depending upon the time of year you commence operations and what inventory, if any, you already have in stock.
3. Leasehold Improvements, Signage, and Store Design: $40,000 to $110,000
- Your costs for leasehold improvements will vary depending upon the size and design of your retail location, its geographic location, costs assumed by your landlord, and other economic factors.
- You may need to hire a store designer or architect to assist you in designing and executing any leasehold improvements. Mainstream estimates a store designer or architect could cost $3,000.
- Mainstream has certain designated vendors you are required to use in developing your Business which are disclosed in Item 8.
- Mainstream anticipates that most Retail Locations will have approximately 1,500 square feet and be located in strip malls or similar non free-standing locations.
- In addition to leasehold improvements, your monthly rent likely will range from $1,000 to $6,000 depending on the site of the Retail Location.
4. Real Estate Deposits: $1,000 to $8,000
5. Travel and Living Expenses During Training: $0 to $2,500
6. POS System, Computer Hardware, and Software: $6,000 to $9,000
7. Furniture, Fixtures, Equipment, and Retail Supplies: $8,000 to $18,000
8. Professional Services: $0 to $1,000
9. Additional Funds for 3 Months: $21,000 to $30,000
- These amounts are an estimate of the expenditures you will make during the first three months of the operation of your Mainstream Boutique Business for items such as salaries, supplies, utilities, Continuing Fees, Advertising Fees, insurance, and other miscellaneous operating costs.
- These estimates are based on Mainstream’s and Marie DeNicola’s over 25 years of experience in operating a Mainstream Boutique Business. These figures are estimates only, and it is possible that you may have additional or greater expenses during this period.
- Your costs will vary depending on the economic and market conditions, competition, wage rates, sales levels attained, and other economic factors.
10. Total: $115,000 to $241,500