Detailed Estimates of Crestcom Franchise Costs Based on Item 7 (Estimated Initial Investment) of Crestcom’s 2019 Franchise Disclosure Document
1. Initial Franchise Fee: $69,500
- The initial franchise fee for a Crestcom Business franchise is $69,500.
2. Office Lease Costs: $0 to $500
- Most current franchisees maintain an office in their residence. However, you may elect to lease office space from which to conduct your business.
- You will only need a 100 square foot office in an executive suite with a shared receptionist. The office will not need to be located in a central business district.
- The estimates in the table include the first three months’ lease payment and a security deposit equal to one month’s rent. However the lease rate and required deposit for leased office space will vary considerably from area to area.
3. Fast-Start Kit: $0
- Upon payment of your initial franchise fee, Crestcom will provide you with its Fast-Start Kit at no additional charge to you. Crestcom’s Fast-Start Kit contains an initial inventory of training materials and sample documents to promote your Crestcom Business.
- Alternately, Crestcom may decide to provide you with a credit equivalent in dollar value to its price for the items included in the Fast-Start Kit that may be used to acquire Materials and products from Crestcom.
4. Equipment and Supplies: $575 to $3,150
- The initial cost for equipment is estimated to be from $575 to $3,150, based on the following:
- Video Projector: $500 to $1,500
- Phone System: $75 to $250
- Computer System: $0 to $1,400
- Total: $575 to $3,150
- You may already own some of the items contained in the equipment listed above. In that event, you will only need to obtain the remaining items listed.
- The projection screen used to conduct your training sessions is often provided by the hotel or other meeting place where you hold your training sessions. Therefore, Crestcom has not included this item in these estimates.
- You may also be able to find a source that will allow you to lease your equipment.
5. Insurance: $500 to $1,800
- General liability insurance varies in each assigned area.
- Crestcom recommends that a franchisee maintain insurance on the Materials in its possession or control. No estimate is given for the cost of that insurance.
- You should consult an attorney or insurance advisor for recommended coverage.
- You may need to increase any existing automobile insurance coverage that you presently have due to the increased amount of usage of your automobile. Estimates for automobile insurance are shown in the table.
6. Initial Training Expenses: $1,120 to $2,569
- An initial classroom training program is provided at no additional charge to you for up to three persons, and an initial Boot Camp training program is provided at no additional charge to you for up to two persons, although only one person is required to attend and complete the programs.
- You are responsible for the travel, lodging, and living expenses of each person you select to attend the training programs. The table lists the estimated costs for travel, lodging, and living expenses in connection with one person attending the training programs.
- Crestcom will reimburse you for one-half of the hotel accommodation cost for one person at the initial classroom training program or, at Crestcom’s discretion, one-half of the cost of transportation to and from the training site by the most economical means for one person’s attendance at the initial classroom training program, except if you are acquiring your Crestcom Business as the result of a transfer.
7. Seminar Expense: $0 to $1,250
- You may decide to conduct management training and hold monthly The Bullet Proof Manager courses in area hotels or meeting rooms. The estimated cost for one month’s training is approximately $0 to $1,250, representing costs for the meeting room depending on where your seminars are held.
- You may be able to reduce this cost by offering to train hotel personnel in exchange for the use of the facilities. Crestcom agrees to waive your Distribution Fees for one such exchange per year.
- The numbers in the chart assume that you will serve as the Facilitator.
8. Legal and Accounting: $500 to $1,500
- You are encouraged to consult with legal counsel and an accountant in connection with your investment in this Crestcom Business and with start-up business concerns.
- Franchisees must maintain accurate books and records, kept in accordance with United States generally accepted accounting principles. At its request, franchisees must provide Crestcom with their annual financial statements, which may be unaudited but be compiled or reviewed by an independent certified public accountant, and their state and federal income tax returns within 120 days after the end of each applicable fiscal year.
9. Shipping Costs; Initial Inventory: $200 to $700
10. Marketing Program: $7,800 to $9,600
- Unless otherwise agreed to by Crestcom, franchisees must follow Crestcom’s proprietary prescribed marketing plan, which is provided in the Procedures Manual, for generating leads for their Crestcom Businesses, including mailing to bona fide prospective clients a minimum number of Crestcom’s proprietary mailing instruments each month for a designated period of time.
- You will be responsible for all costs associated with acquiring, preparing, and mailing Crestcom’s proprietary mailing instrument to your prospective clients.
- Crestcom may provide telemarketing services to you under such terms and conditions as it may determine, and if you choose to use those telemarketing services, the amounts you pay to Crestcom for those services are nonrefundable, but will be credited toward your required expenditures under Crestcom’s proprietary prescribed marketing plan.
- The details of Crestcom’s proprietary prescribed marketing plan are found in the Procedures Manual.
11. Additional Funds for 3 Months: $5,000 to $8,775
- This amount is an estimate and includes a franchisee’s pre-operational expenses which are not listed above, as well as estimated additional funds necessary for the first three months of business operations.
- It includes travel, freight, rent, permits, taxes, utilities, advertising, and other operational expenses, but does not include a salary or draw for the franchisee or others, including any salespersons, facilitators, or telemarketers employed by the franchisee. You are not required to employ any of these persons.
- You may have additional expenses starting your business. Your costs depend on several factors and may vary beyond the range noted above.
12. Total Estimated Initial Investment: $85,195 to $99,344
- In compiling these figures, Crestcom has relied on the more than 25 years of experience of its predecessor and itself in this business and the cumulative years of similar experience of its individual management personnel.