Fastest Labs Franchise Costs: Estimated Initial Investment (Item 7, 2023 FDD)
1. Initial Franchise Fee: $59,500
2. Airfare and Living Expenses While Training: $750 to $1,500
- Airfare rates are based on round trip accommodations for two people and may be more or less expensive depending on current airline ticket prices.
- Living expenses may vary depending on individuals’ specific needs.
- You may incur additional fees if you bring additional people to initial training.
3. Lease and Utility Security Deposits: $1,500 to $3,500
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- Your lease payments will depend on geographic location, size, local rental rates, businesses in the area, site profile, and other factors and as a result could be considerably higher than this estimate in some areas.
- Fastest Labs estimates that rent will typically range from $12 to $18 per square foot.
- Fastest Labs Businesses may be located in strip malls, shopping centers, free-standing buildings, other venues in downtown commercial and/or industrial areas, and in residential areas.
- Fastest Labs anticipates that you will rent your Fastest Labs Business; however, you may choose to purchase real estate on which a building suitable for your Fastest Labs Business is constructed or could be constructed.
- Real estate costs generally depend on location, size, visibility, economic conditions, accessibility, competitive market conditions, and the type of ownership interest you are purchasing.
4. Exterior Signage and Installation: $5,000 to $9,000
- Signage may vary based on quantity of signs, size of the signage, installation of signage, and materials used.
5. Office Equipment: $2,500 to $4,000
- This amount may be needed to purchase office furniture, office supplies, office decorations and fixtures, waiting room chairs, desks, chairs, trash cans, on-site testing equipment, filing cabinets, security safe, fire extinguisher, privacy curtains, plastic trays and wall trays, auto towel dispenser and paper rolls, rack shelving, vacuum, mini refrigerator, water filtration pitcher, paper shredder, soap dispenser, clip boards, and incidental office supplies.
6. Initial Testing Equipment: $3,100 to $3,700
- This estimate is for your initial inventory which includes drug testing supplies, envelopes, forms, business cards, and other materials.
7. Insurance and Miscellaneous Opening Expenses: $1,800 to $2,800
- This amount may be needed to purchase or pay deposits on required insurance policies.
- All insurance carriers must be approved by Fastest Labs.
- In addition, this amount may also include incorporation, legal fees, workers’ compensation, certificate of occupancy/inspections, and legal posters.
- The estimated cost for all insurance during the first year of operation may be $1,800 to $2,800, which includes the cost of workers’ compensation. Insurance costs vary from state to state.
- Workers’ compensation rates are based on a percentage of estimated first year payrolls. Many states will charge between $3 to $12 per $100 in payroll. A few states are higher, such as California.
8. Computer Hardware and Software: $6,000 to $7,200
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- This estimate includes the required software (Zoom Info Sales with Engage CRM, QuickBooks Advanced Online, and QuickBooks integrated credit card services), one iPad tablet (Fastest Labs includes one at no charge for your first FT Business), a phone system with three phones, a sound system, a credit card machine, Fastest Labs’ designated credit card processor, two laptop computers, and two color printer/scanner/copiers.
- It also includes one programmed tablet for use with Fastest Labs’ proprietary software system, tablet stand, and wireless keyboard and one year of the required monthly subscription to Fastest Labs’ proprietary software system used in conjunction with its testing services.
9. Start-Up Kit and Uniforms: $1,000 to $1,500
- The start-up kit includes brochures, business cards, posters, decals, and forms. Your start-up kit costs will vary, depending on the amounts of each that you order.
- This estimate also includes Fastest Labs’ approved uniforms for your employees, which you must also purchase prior to opening.
10. Additional Funds (3 months): $20,000 to $40,000
- These estimates are based on the minimum amount that may be needed for expenditures necessary to cover expenses for the start-up phase of three months from the commencement date of your Fastest Labs Business.
- These expenses may include utilities (water, electric, internet, phone, fax), payroll, workers’ compensation insurance, rent, additional sales training, and additional inventory/miscellaneous items.
- This estimate also includes your required grand opening advertising and local advertising.
- These figures are estimates, and Fastest Labs cannot guarantee that you will not have additional expenses starting and operating the business during the start-up phase of three months.
- Fastest Labs’ estimates are based on its sale of franchises since 2010 and the affiliate’s operation of a similar business since 2008.
- Your costs will depend on factors which include how closely you follow Fastest Labs’ methods and procedures; your management skills, experience, and business acumen; local economic conditions; the prevailing wage rate; your competition; and the sales level you achieve during the initial period.
11. Total Estimated Initial Investment: $101,150 to $132,700
- This total estimated initial investment has been based on Fastest Labs’ experience and the experience of its predecessor in operating a similar business.
- Fastest Labs has relied on the experience of its affiliate in operating the Fastest Labs Business office in San Antonio, Texas.
- If you purchase a Large Territory, you will incur all of the costs listed above except that the Initial Franchise Fee will total $80,500. Fastest Labs estimates that your initial investment for a Large Territory will range from $122,150 and $153,700.