N-Hance Franchise Costs: Estimated Initial Investment (Item 7, 2021 FDD)
1. Initial License Fee: $17,123 to $46,050
2. Initial New Business Set – Equipment and Product: $11,000 to $20,995
3. Initial New Business Set – Marketing and Operations Package Fee: $23,000
- In order to acquire an N-Hance franchise, you must pay the franchisor the Initial Fee as outlined in Item 5. The Initial Fee is not refundable. All fees are imposed by and payable to the franchisor.
- If you pay the Initial License Fee in full within 6 months of signing the Franchise Agreement and the Business Note, the franchisor will offer you a Cash Discount of 12% of the Initial License Fee amount.
4. Business Vehicle: $0 to $35,000
- A white cargo van or a white pickup truck with a trailer is required for the operation of the Business and is used to transport equipment and products to a job site (the “Business Vehicle”).
- In order for a Business Vehicle to be approved by the franchisor, the Business Vehicle must be a clean, well-maintained white cargo van or white pickup truck with an enclosed trailer and compliant with the current N-Hance standards.
- The Business Vehicle must be marked professionally and clearly on both sides with the N-Hance approved logos.
- Your first Business Vehicle must generally be in operation within 90 days of the Franchise Agreement date.
- This item estimates the cost of your first van. If you already own a suitable, insurable Business Vehicle, there may be no need to purchase or lease an additional vehicle. However, the Business Vehicle must comply with standards of professionalism a consumer would expect when contracting for N-Hance services, and meet the current operations standards.
5. Three Months’ Rent: $0 to $5,500
- If you do not own adequate space for the operation of the Business, you must lease space. Generally, this will require you to pay the first and last months’ rent, plus a security deposit.
- N-Hance Businesses are generally located in light industrial parks and must be at least 300-500 square feet.
6. Telephone and Business License: $400 to $4,000
7. Travel Expenses While Attending Training (if applicable): $1,000 to $4,000
- You are responsible for costs associated with travel to attend training and conventions, and for your own accommodations and meals while there.
8. Insurance: $600 to $6,000
- You must obtain and maintain business liability coverage as well as vehicle liability coverage as a condition for receiving or maintaining a franchise.
- You will pay this amount during the first three months of operations and then pay the balance of the annual premium monthly or quarterly.
9. Additional Funds for 3 Months: $2,500 to $12,000
- You will need more funds if you are developing more than one Franchised Area.
- These expenses include payroll costs, but do not include any draw or salary for you.
- These figures are estimates, and the franchisor cannot guarantee that you will not have additional expenses starting the business.
- The franchisor, in combination with its predecessor HRI, relied on over 16 years of experience in the wood cleaning, coating, protection, and renewal services to compile these estimates.
10. Computer System: $0 to $2,000
- A computer system suitable to maintain and service your customer base is required for your Business.
- If you already own a suitable computer system, there may be no need to purchase an additional one. However, you must obtain software designated by the franchisor.
- You must also maintain an Internet connection and an email, and must check your email account at least daily. Cable or DSL internet connection is recommended.
11. Advertising for 3 Months: $1,500 to $5,000
- This is an estimate of amounts you should spend on advertising your Business and are in addition to the marketing resources provided in the New Business Set. You should make further inquiries as to advertising amounts specific to your area.
12. Permits and Licenses: $700 to $5,000
- The franchisor does not require any permits or licenses before you begin operation of your franchise, but your particular state or locality may have licensing requirements. You must obtain any permits or licenses required by your locality for performing the services of the franchise.
- You must also obtain training and certification under the RRP by attending this training and obtaining certification from a third party. This training is not provided by the franchisor at this time.
13. Total Estimated Initial Investment for Initial Franchise Purchase: $57,823 to $168,545