Updated May 3, 2020.
Detailed Estimates of TeamLogic IT Franchise Costs Based on Item 7 (Estimated Initial Investment) of TeamLogic IT’s 2019 Franchise Disclosure Document
- Your salaries, draws, or personal living expenses are not included below. You must have additional sums available (whether in cash, credit, or collateral) to cover these expenses. No part of your initial investment in your TeamLogic IT franchise will be financed directly or indirectly by the franchisor.
1. Initial Franchise Fee: $40,000 to $45,000
- This fee must be paid in full at the time indicated.
- In order to be eligible to sign the Franchise Agreement, you must provide the franchisor with reasonable proof of your financial ability to make the initial investment described above and you must authorize the franchisor to conduct a credit check to confirm your financial ability to purchase and develop the franchise.
- The Initial Franchise Fee is $45,000; VetFran discount franchise fee is $40,000; and the fee for a conversion franchise is $45,000.
- The Initial Franchise Fee includes training expenses for two people, including transportation, lodging (one room, double occupancy), and some meals.
2. Software Fee: $2,100 to $3,500 (subject to change)
3. QBooks Online: $100 to $150 per month
4. Vehicle Lease and Graphics: $0 to $350 (lease)/$100 to $3,000
- You may, but are not required to, lease a vehicle to be used in the Business.
- Any leased or personal vehicle used in the Business must be outfitted with, at a minimum, the approved vehicle signage.
- Any vehicle used in the Business must be maintained in a neat, clean, undamaged, and safe condition. All damages must be repaired in a prompt and timely manner.
5. Initial Equipment: $3,000 to $5,000
- You must purchase, lease, or otherwise have certain hardware and software, and telephone equipment. The franchisor estimates this hardware and software package will range in cost from $3,000 to $5,000, subject to change.
- The software fees, which are subject to change, are required to obtain various software programs, and a portion of the fees are payable to the franchisor.
- The Professional Services Automation software fees described in item 11 are payable to the franchisor.
- All software is developed by third parties. The franchisor currently does not develop or license its own proprietary software to you but may do so in the future. It does not make any warranties or guaranties upon which you may rely, and assumes no liability or obligation to you for any third-party software.
- The various software vendors may change from time to time.
- The current equipment configuration is 3 computers (1 must be a laptop) with Internet access, 2 smartphones, and a telephone system capable of forwarding calls to remote numbers with a voice mail system that can be easily accessed from the field.
6. Real Estate Leasehold Improvements/Monthly Rent: $750 to $1,500
- You are required to lease office space for the Business in your territory. The terms of your rent and other lease expenses and improvements will depend on the size, location, condition, and desirability of the space.
7. Additional Funds for 6 to 8 Months: $58,700 to $84,800
- Additional Funds is an estimate of the funds needed for initial employee wages, insurance, marketing, dues (including dues for being a member of local community groups such as the Chamber of Commerce), TeamLogic IT apparel, recruitment, high speed Internet connection, credit card processing, as well as additional operating capital for other variable costs (e.g. rent, utilities, and telephone).
- Additional Funds is also an estimate of the monies you will need on hand during the initial phase of the Business operations. The franchisor estimates that the amount given will be sufficient for a 6 to 8-month start-up phase. However, actual breakeven timing can vary based on many factors, including how well you follow the franchisor’s systems, actual market conditions and demand, fixed costs, etc.
- These figures are estimates only and it is possible to significantly exceed costs in any of the areas listed. The franchisor cannot guarantee that you will not have additional expenses starting the franchise.
- Your costs will depend upon such factors as how much you follow the franchisor’s methods and procedures; your management experience and skills; the area in which your Business is located; local economic conditions; prevailing wage rate; the physical size of a leased location; the amount of any tenant improvements required; and the sales level reached during the initial period.
- The franchisor relied on its 14 years of experience in the information technology business to compile these estimates and the working capital costs experienced by its franchisees.
8. Total: $104,750 to $143,300