Detailed Estimates of Budget Blinds Franchise Costs Based on Item 7 (Estimated Initial Investment) of Budget Blinds’ 2019 Franchise Disclosure Document
1. Initial Franchise Fee: $19,950
- Payable only with your first Franchise Agreement.
2. Initial Territory Fee: $70,000
3. Additional Territory Fee If Second Territory Purchased at the Same Time as the Initial Territory: $0 to $60,000
- If you are buying your Territory from Budget Blinds rather than from an existing franchisee, when you sign a Franchise Agreement, you must pay Budget Blinds either (a) an Initial Territory Fee of $70,000, or (b) an Additional Territory Fee of $70,000, or (c) if you are buying two Territories simultaneously, both.
- If you buy your first and second Territories simultaneously, the Additional Territory Fee is $60,000.
- If you buy your Additional Territory at a later time, the Additional Territory Fee is equal to the then-current Initial Territory Fee.
- The Initial Territory Fee is discounted by $15,000 if you are a veteran, active service member, or spouse of a veteran or active service member of the United States Armed Forces.
4. Excess Costs of Training: $250 to $2,500
- Budget Blinds will train you and your manager (or you and one additional attendee, if you will be manager) for 9.5 days at its facilities in Irvine, California.
- Subject to space availability, Budget Blinds will allow additional people associated with you to attend at your request.
- Budget Blinds does not charge for the initial training for you and one other attendee, but may charge a training fee of up to $100 per day for additional trainees.
- Budget Blinds will pay up to $500 in the aggregate for airfare for you and one other person to attend training. It will also pay for one hotel room (but not any charges to your room for telephone, internet, and similar expenses) of its choice.
- You must pay any additional costs of transportation, lodging, meals, and other incidental expenses that you and your employees incur during training, as well as any wages of your employees for their time during training.
5. Work Vehicle: $5,000 to $48,000
- This is a new or used white commercial-grade cargo van, extended van, or mini-van type vehicle on which the Budget Blinds Marks are placed. The vehicle may be bought or leased.
- Budget Blinds gives you the wrap as part of the start-up package and pays to have it installed on your vehicle by its vendor.
6. Computer: $1,200 to $2,000
- If a laptop is selected, a minimum 14-inch screen with high resolution is recommended.
7. Credit Card Processing Technology: $30 to $500
8. Telephone Equipment: $60 to $120
9. Auto Insurance: $500 to $2,400
- Such policy must be on an occurrence basis with a combined single limit for bodily injury, death, or property damage of not less than $1,000,000. Budget Blinds must be named as an additional insured.
10. Commercial General Liability Insurance: $500 to $2,400
- Such policy must be on an occurrence basis with a combined single limit for bodily injury, death, or property damage of not less than $2,000,000. Budget Blinds must be named as an additional insured.
11. Contractor’s License and Bond: $0 to $1,500
- A contractor’s license and bond is required only in states that require a contractor’s license.
12. Additional Tools and Supplies: $100 to $1,500
- As part of the start-up package, Budget Blinds gives you some product samples and sample books from selected suppliers at no additional charge.
- Budget Blinds only provides a start-up package if you are purchasing your first Territory from it or an existing franchisee.
- Budget Blinds does not provide additional samples and sample books when you sign a subsequent Franchise Agreement.
- If you want more or additional sample books from other approved suppliers or samples of other products, you must obtain them from the supplier.
13. Professional Services: $750 to $3,500
14. Additional Funds for First 3 Months: $12,000 to $20,000
- This category estimates an additional cash reserve available to cover initial operating expenses during the first three months of operation. It includes marketing expenditures ranging from $10,000 to $15,000.
- The amount of additional funds that you may need varies based on a variety of factors, including whether you choose to have an office outside your home; the number of employees you choose to hire and the salary and other benefits you choose to pay; gasoline purchases and vehicle maintenance expenses; the extent to which you are actively involved in operating your business; your skill, experience, and business acumen; local competition; local economic conditions (including rent and wage scales and the cost of supplies); and the actual sales levels that you reach during the initial 3-month period.
- The “Additional Funds” category is not the only source of cash, but is in addition to cash flow from operations.
- Budget Blinds cannot estimate your cash flow from operations and encourages you to contact its existing franchisees to evaluate this on your own.
15. Total: $110,340 to $234,370