N-Hance Franchise Costs: Estimated Initial Investment (Item 7, 2022 FDD)

1.  Initial License Fee:  $13,347 to $64,582, per franchise

2.  Initial New Business Set – Equipment, Product, Marketing, and Operations Package Fee:  $38,500

• You must pay the franchisor the Initial Fee as outlined in Item 5. The Initial Fee is not refundable. All Initial 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.

3.  Business Vehicle:  $0 to $50,000

• 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 marked and in operation within 90 days of the Franchise Agreement date.

• This item estimates the cost of your first van, the price for which could vary based on market conditions. 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 published in the Manual.

4.  Three Months’ Rent:  $0 to $6,500

• If you do not own adequate space for the operation of the Business, you must lease suitable commercial/industrial 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 space that must be at least 1,000 square feet.

• Your monthly rent could vary based on market conditions.

5.  Telephone and Business License:  $400 to $4,000

6.  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.

• This amount does not include the cost of compensation, taxes, benefits, and insurance for persons attending training.

7.  Insurance:  $600 to $6,000

• You must obtain and maintain commercial general liability coverage as well as vehicle liability coverage during the term of your Franchise.

• You will pay this estimated premium amount during the first three months of operations and then pay the balance of the annual premium monthly or quarterly.

8.  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 estimates include payroll costs, but do not include any draw or salary for the business owner.

• The franchisor cannot guarantee that you will not have additional expenses starting the business.

• The franchisor relied on its years of experience in the wood cleaning, coating, protection, and renewal services to compile these estimates.

9.  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, install, and use the applications software designated by the franchisor.

• You must also maintain an Internet connection and an email, and must check your email account at least daily. High-speed internet connection is strongly recommended.

10.  Advertising for 3 Months:  $1,500 to $5,000

• This is an estimate of amounts you should spend on advertising your Business in the Franchised Area 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 Franchised Area.

11.  Permits and Licenses:  $700 to $5,000

• You must obtain any governmental permits and licenses required to serve your Franchised Area.

• 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.

12.  Total Estimated Initial Investment for Initial Franchise Purchase:  $58,547 to $197,582