Detailed Estimates of Big Frog Custom T-Shirts & More Franchise Costs Based on Item 7 (Estimated Initial Investment) of Big Frog’s 2019 Franchise Disclosure Document
- These estimated initial expenses are Big Frog’s best estimate of the costs you may incur in establishing and operating your Big Frog Business.
- Big Frog does not offer direct or indirect financing for these items. The availability and terms of financing from third parties depend on many factors, including the availability of financing generally, your creditworthiness and collateral, and the lending policies of financial institutions from which you request a loan.
- The factors underlying Big Frog’s estimates may vary depending on several variables, and the actual investment you make in developing and opening your Big Frog Business may be greater or less than the estimates given depending upon the location of your Store and current relevant market conditions.
- Big Frog did not include state or local sales taxes in any of the above estimates.
- Unless otherwise stated below, these estimates are subject to increase based on changes in market conditions, Big Frog’s costs of providing services, and future policy changes.
- All expenditures paid to Big Frog are uniform and non-refundable under any circumstances once paid. Fees paid to vendors or other suppliers may or may not be refundable depending on their policies or your arrangements with them.
For a Standard Location
1. Initial Franchise Fee: $39,500
- Your total estimated initial investment for each additional Big Frog Business will be reduced by the reduction in Initial Franchise Fees and possibly other costs such as professional fees and travel expenses.
2. Training Travel Expenses: $1,667 to $2,667
- This estimate is based on a commercial lease of approximately 1,200 square feet of interior retail space with HVAC, lighting fixtures, electrical outlets, and telephone wiring installed for your Standard franchise and for approximately 600 square feet of retail space for an Express franchise.
3. Lease Deposits and Store Buildout: $8,000 to $46,000
- Rent for a Standard franchise is estimated to be between $3,000 to $5,500 per month, depending on factors such as market, size, condition, and location of the leased premises. Rent for an Express franchise is estimated to be between $1,000 to $3,500 per month, depending on factors such as market, size, condition, and location of the leased premises.
- Landlords typically require an initial payment equal to the first month’s rent plus a guarantee deposit equal to 1 month’s rent.
- There should be little alteration required to the leased premises; however, this will depend upon factors such as whether the Store is immediately adaptable to the installation of the equipment and fixtures.
- This estimate does not include security deposits or prepaid rent which the landlord may require.
- If you choose to purchase instead of lease the premises for your Store, then the purchase price, down payment, interest rates, and other financing terms will determine your monthly mortgage payments. The costs of purchasing a store vary so widely that Big Frog cannot reasonably estimate the cost.
4. Equipment, Furniture, and Fixtures: $70,000 to $87,000
- You must purchase the Franchise Equipment Package from Big Frog.
5. Computer System and Software: $12,000 to $15,000
6. Signs: $3,500 to $5,500
7. Office Supplies: $2,000 to $5,600
8. Insurance: $1,667 to $2,667
- You must obtain and maintain, at your own expense, the insurance coverage Big Frog requires and satisfy other insurance-related obligations. The amounts listed in this table reflect Big Frog’s estimate of basic insurance for your first 3 months of operation.
9. Professional Fees: $1,667 to $2,667
10. Franchise Opening Costs, including Utility Deposits, Licenses: $1,000 to $2,000
- This figure covers miscellaneous opening expenses for the first 3 months of operation of your Big Frog Business. This estimate includes Internet connection and service fees.
11. Opening Inventory: $4,200 to $5,200
12. Promotional and Advertising for 3 Months: $10,000
13. Additional Funds for 3 Months: $40,000 to $42,000
- This estimate includes payroll costs, operating expenses, rent, utilities, and royalties. These totals are based on Big Frog’s business experience with other franchisees. These figures do not include a salary for you.
- Big Frog cannot guarantee you will not incur additional expenses in starting your Big Frog Business operations.
- Your actual costs will depend on factors such as: how closely you follow Big Frog’s methods and procedures; your own management skills, experience, and business acumen; local economic conditions including wage rates and your property lease; the local market for your products and services, including the effects of competitors’ products and services; and the level of revenues you reach during the initial period.
14. Total Estimated Initial Investment: $198,701 to $268,301
For an Express Location
1. Initial Franchise Fee: $13,500
2. Training Travel Expenses: $1,667 to $2,667
3. Lease Deposits and Store Buildout: $3,000 to $26,000
4. Equipment, Furniture, and Fixtures, including Computer Software and System: $52,500 to $61,000
5. Signs: $1,500 to $4,500
6. Office Supplies: $1,500 to $5,600
7. Insurance: $1,667 to $2,667
8. Professional Fees: $1,667 to $2,667
9. Franchise Opening Costs, including Utility Deposits, Licenses: $1,000 to $2,000
10. Opening Inventory: $2,000 to $4,200
11. Promotional and Advertising for 3 Months: $4,500 to $7,500
12. Additional Funds for 3 Months: $30,000 to $32,000
13. Total Estimated Initial Investment: $114,501 to $164,301