Updated May 7, 2020.
Detailed Estimates of Xpresso Delight Franchise Costs Based on Item 7 (Estimated Initial Investment) of Xpresso Delight’s 2020 Franchise Disclosure Document
- None of the estimated expenditures paid to the franchisor are refundable. Payments to third parties may be refundable, depending on the terms of your agreements with them.
- The franchisor does not offer direct or indirect financing to you for any part of your initial investment.
1. Initial Franchise Fee: $37,500
- You may place up to 50 Xpresso Delight Beverage Machines in the territory at any one time. If you do not place a minimum of 5 Xpresso Delight Beverage Machines during the term of the Franchise Agreement, you will not be eligible to renew the Franchise Agreement.
2. Purchase of Xpresso Delight Beverage Machines: $20,000 to $25,000
- You must purchase 5 Xpresso Delight Beverage Machines (includes Low Volume Coffee Machines or High Volume Coffee Machines or a combination of both) from the franchisor when you sign the Franchise Agreement for approximately $4,000 for each Low Volume Machine and
$5,000 for each High Volume Machine.
- Actual costs will vary from time to time as a result of the fluctuating cost of supplies.
- The franchisor includes an administrative fee of 7.5% in the cost of each Xpresso Delight Beverage Machine.
- You are required to pay for all shipping and delivery charges.
3. Launch Marketing: $6,000 to $10,000
4. Travel and Living Expenses While Training: $3,000 to $5,000
- This estimate is for two persons attending the initial training program. This includes travel and living expenses during training.
5. Technology Expenses: $750 to $1,500
- The technology expenses include the costs associated with obtaining a cellphone and either a laptop or tablet which will enable you to access the franchisor’s Internet-based technology platform.
6. Insurance: $500 to $1,000
7. Professional Fees: $2,000 to $5,000
8. Additional Funds (First 90 Days of Operations): $15,000 to $30,000
- This estimate of Additional Funds needed to commence operation of the Franchise Business and to operate the Franchise Business for 90 days is based on the experience of the franchisor’s affiliate’s operation in New York City.
- This estimate covers anticipated expenditures for inventory, marketing, travel, insurance, and administrative expenses for the Franchise Business.
- The actual amount needed will depend on a variety of factors including the size of the territory, your management skill, experience, acumen, economic conditions, and competition in your territory.
- You should review these estimates carefully with your attorney, accountant, and other business advisors before you make any decision to enter the Franchise Agreement with the franchisor.
9. Estimated Total: $84,750 to $115,000
- The franchisor has relied on its experience in the industry to compile these estimates. You should review these figures carefully with a business advisor before making any decision to purchase a franchise.
- If you sign the Development Agreement, you must pay the Development Fee. Your estimated initial investment will be the same as set forth in Item 7 except for the payment of the Development Fee which includes the Franchise Fee for your first franchise.
- The amount of the Development Fee is calculated by multiplying the number of franchises you agree to establish and operate in accordance with the development schedule by the applicable Franchise Fee for each franchise.
- Under a Development Agreement, the Franchise Fee for the first franchise is $37,500; $32,500 for the second franchise; $30,000 for the third; and $25,000 for any additional franchises.