Updated November 10, 2021.
Detailed Estimates of My Salon Suite/Salon Plaza Franchise Costs Based on Item 7 (Estimated Initial Investment) of My Salon Suite/Salon Plaza’s 2021 Franchise Disclosure Document
- These estimated initial expenses are the franchisor’s best estimate of the costs you may incur in establishing and operating your Franchised Business.
- The franchisor’s estimates are based on its experience, the experience of its owners and its officers, the experience of its affiliates, and its current requirements for Franchised Businesses.
- All expenditures paid to the franchisor or its affiliates are uniform and non-refundable under any circumstances once paid. All expenses payable to third parties are non-refundable, except as you may arrange for utility deposits and other payments.
1. Initial Franchise Fee: $50,000
2. Travel and Living Expenses: $1,000 to $3,000
3. Rent or Real Estate: $4,500 to $17,000
- You must lease or otherwise acquire a suitable facility for the operation of your Franchised Business. You will need a facility with approximately 3,715 to 14,250 square feet of space.
- Your actual rent payments may vary depending upon your location and your market’s retail lease rates.
- If you purchase instead of lease the premises for your Franchised Business, then the purchase price, down payment, interest rates, and other financing terms will determine your monthly mortgage payments.
4. Improvements/Conversions: $504,142 to $1,349,264
- The cost of building out and constructing your Franchised Business will vary significantly based on the geographic location and square footage of your Franchised Business.
- Tenant improvement allowance has ranged from $0 to $399,150 for locations ranging from 3,715 to 10,500 sq. ft.; an average tenant improvement allowance of $168,033, for a 5,829 sq. ft. location; and a median tenant improvement allowance of $189,600, for a 5,848 sq. ft. location.
5. Furniture and Fixtures: $94,576 to $257,825
6. Signage: $2,853 to $17,989
7. Miscellaneous Opening Costs: $1,000 to $3,000
- This estimate is for miscellaneous opening costs and expenses such as installation of telephone; deposits for gas, electricity, and other services; business licenses; vehicular registrations; legal and accounting expenses for your start-up period.
8. Operating Supplies: $1,000 to $5,000
- You will need to purchase initial inventory of cleaning supplies and other operating supplies.
9. Advertising/Marketing (3 Months): $10,000
10. Insurance (Annual): $1,400 to $4,000
- You must obtain and maintain, at your own expense, the insurance coverage the franchisor requires, and satisfy other insurance-related obligations.
- If you have had prior issues or claims from previous operations unrelated to the operation of a Franchised Business, your rates may be significantly higher than those estimated above.
11. Additional Funds (3 Months): $0 to $40,000
- These amounts represent the franchisor’s estimate of the amount needed to cover your expenses for the initial 3-month start-up phase of your Franchised Business. They include payroll costs during the first 3 months of operation, but not any draw or salary for you.
- These figures do not include standard pre-opening expenses, Royalty Fees or Brand Building Fund contributions payable under the Franchise Agreement, or debt service, and assume that none of your expenses are offset by any sales generated during the start-up phase.
- These figures are estimates, and the franchisor cannot guarantee that you will not have additional expenses starting your Franchised Business.
12. Design Standards Fee: $1,000
13. Project Management Fee: $2,500
14. Architectural Services Fee: $6,800 to $34,335
- You will be required to pay various fees to architects and/or design professionals to construct the Franchised Business. These fees consist of site surveys, plus travel, architectural design fees, and permit submittal/service fees.
15. Total Estimated Initial Investment: $680,771 to $1,794,913
- This is an estimate of your initial start-up expenses for 1 Franchised Business.
- You should review these figures carefully with a business advisor before making any decision to purchase the Franchise.