Updated July 1, 2019.
Detailed Estimates of Xpresso Delight Franchise Costs Based on Item 7 (Estimated Initial Investment) of Xpresso Delight’s 2019 Franchise Disclosure Document
- The following chart describes the estimated initial investment for a Unit Franchise Business. Xpresso Delight prepared these estimates based on the experience and data collected from its current franchise operations in Manhattan, New York.
- Except as expressly indicated otherwise, these estimates cover your initial cash investment up to the commencement of your Franchise Business, and potential working capital needs for the first 90 days of operations thereafter.
1. Initial Franchise Fee: $37,500
- This amount is the Franchise Fee for your franchise and also includes the XD Start-Up Kit.
- The Franchise Fee is $37,500, no portion of which is refundable even if the franchise terminates before commencing operations.
- You may place up to 50 Xpresso Delight Beverage Systems in the Territory at any one time. However, if you fail to place the initial 5 Xpresso Delight Beverage Systems purchased at the commencement of your Franchise Business within the initial term of the Franchise Agreement, Xpresso Delight may not offer you a renewal opportunity.
2. Purchase of Xpresso Delight Beverage Systems: $25,000
- You must at least purchase 5 Xpresso Delight Beverage Systems from Xpresso Delight when you purchase your franchise, as detailed in the Manuals, for an estimated cost of $5,000 per system.
- The figures stated in the table are the estimated cost of the Xpresso Delight Beverage Systems required to operate the Franchise Business based on current pricing. The actual cost to you of the 5 systems will likely vary from time to time as a result of pricing changes by Xpresso Delight’s equipment sources and may also vary as a result of factors specifically applicable to you, such as location, delivery or shipping charges, and other items.
- You will be provided the actual cost prior to signing your Franchise Agreement.
3. Travel and Living Expenses While Training: $3,000 to $5,000
- This is based on 2 persons attending the initial training program.
- The range of estimates presented above reflects that transportation expenses will vary according to distance traveled, choices made for housing and meals, and the mode of transportation, keeping in mind the initial training program is provided to you in your Territory by Xpresso Delight or a designee, if Xpresso Delight so chooses.
4. Computer Hardware, Software: $1,500 to $3,500
5. Insurance: $500 to $1,000
6. Professional Fees: $2,000 to $5,000
7. Additional Funds (First 90 Days of Operations): $15,000 to $30,000
- These are estimates of the funds you will need to commence operation of your Franchise Business and to operate your Franchise Business for 90 days once you commence operations.
- The actual amount of additional funds that you will need depends on a variety of factors, including the size of your area, the time of year when you start your business, your management skill, economic conditions and competition in your area, your business plan, and other factors.
- The estimate of additional funds is based upon an owner-operated business and does not include any salaries or benefits for employees or any allowance for an owner’s draw.
- Xpresso Delight estimates that, in general, a franchisee can expect to invest additional cash into the business during the first 90 days, and sometimes longer, but it cannot estimate or promise when, or whether, any individual franchisee will achieve positive cash flow or profits. The variables that affect these limits include your rate of pay, initial sales volume, frequency of reordering supplies, the amount of utility bills, and similar variables.
- The amounts shown are for your startup and your first 90 days of operation only. They are estimates only and are likely to vary significantly for many reasons, including national, regional, and local economic conditions, and your business experience and acumen.
- In compiling this chart, Xpresso Delight relied on the experience and data collected from its current franchise operations in Manhattan, New York.
- Xpresso Delight does not offer direct or indirect financing to you for any part of your investment. A bank or other lending institution may finance all or part of your investment on terms Xpresso Delight cannot estimate.
8. Estimated Total: $84,500 to $107,000
- Xpresso Delight 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.