101 Mobility Franchise Costs: Estimated Initial Investment (Item 7, 2023 FDD)
1. Initial Franchise Fee: $50,000 to $100,000
- The lower amount in the Initial Franchise Fee range above represents the Initial Franchise Fee for an Area of Primary Responsibility (APR) with a population of 500,000 individuals for an APR that is not within one of the 25 most populous Metropolitan Statistical Areas (“MSA”) in North America. The higher range in the Initial Franchise Fee calculation is for an APR with a population of 1,000,000 for an APR that includes an area that is included in the top 25 most populous MSAs in North America.
- Lower Initial Franchise Fees may apply to recipients of 101 Mobility’s veteran’s discount, additional contiguous APRs, and for APRs 101 Mobility approves that include small to mid-sized cities and less densely populated areas with a minimum population of 350,000.
2. Vehicle and Signage: $8,860 to $10,900
- This range includes the estimated cost of the down payment and 6 monthly payments for the purchase of a vehicle to be used in connection with the Franchised Business. 101 Mobility currently does not specify the make and model of the vehicle that you must purchase, but reserves the right to do so.
- Many of 101 Mobility’s franchisees elect to use their own vehicle for sales purposes and to purchase, wrap, and outfit a second vehicle, typically a truck or other SUV, used by technicians for installation.
- The range above includes the initial cost of financing the purchase of 1 installation vehicle, outfitting this vehicle, and purchasing and installing 1 vehicle wrap.
3. Lease and Utility Security Deposits and Initial Monthly Payments: $13,500 to $27,000
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- This range assumes a 1-month security deposit and 6 months of rent payments on a combination business office and warehouse space in a mixed-use industrial area ranging between 1,500 and 2,500 square feet. The above range also includes utility-related security deposits and six months of estimated utility costs.
4. Equipment: $9,000 to $15,000
- This range includes the cost and installation of demonstration equipment and of minimal initial inventory, such as an auto lift, stair lift, ramps, and optional turning seats.
5. Leasehold Improvements: $0 to $3,000
- This range estimates the built-out cost for your office space with attached garage bay. It is possible that your landlord’s tenant improvement contribution or allowance, if any, will reduce your build-out investment.
6. Office Furniture and Fixtures: $500 to $2,000
7. Signage: $500 to $1,000
- This range includes the cost of lettering on the Franchised Business’s front entrance door and any permitted exterior signage for your office facility.
8. Initial Technology Package: $6,000
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9. Office Equipment and Supplies: $230 to $2,000
- This estimate is for the cost of purchasing the equipment required for your Franchised Business. The low estimate assumes you already have a computer and printer and basic supplies. The high range estimates that you will need to purchase a standard printer and a computer as well as additional office supplies.
10. Initial Software: $4,200 to $4,520
- This range includes the Initial Software License Fee for 101 Mobility’s proprietary MOBILINK software. This estimate also includes the cost of QuickBooks Pro, which 101 Mobility requires you purchase and use in connection with the operation of the Franchised Business.
11. Training: $5,500 to $9,200
- This range includes your estimated cost for completing 101 Mobility’s designated third-party online training program for QuickBooks Pro and for attending 101 Mobility’s initial training program at the locations it designates.
- While 101 Mobility provides instructors, facilities, and materials for the initial training program at no charge, you are responsible for the travel, hotel, dining, wages, and other expenses incurred by your trainees. Your actual costs will depend on the number of trainees, your point of origin, method of travel, class of accommodations, and dining choices.
12. Initial Marketing Fee and Initial Launch Advertising: $9,000 to $11,000
- This range includes both the Initial Marketing Fee and your initial launch advertising expenditure, for which you must spend between $4,000 and $6,000, as 101 Mobility designates, on advertising for the period beginning the two weeks prior to the opening of your Franchised Business through your four initial months of operation.
- Currently, 101 Mobility requires that you pay it directly for initial launch expenditures relating to adword campaigns, though 101 Mobility does not begin collecting these amounts until after your Franchised Business is open.
- Your cost may be higher depending on the type of promotions that you choose to implement; however, 101 Mobility must approve your plan in advance of its execution and reserves the right to modify your initial launch advertising plan, in its sole discretion.
13. Business and Vehicle Insurance Deposits and Premiums: $8,000 to $12,000
- This range includes the cost of a deposit and your first six months of premiums for the minimum business and vehicle insurance required. You will need to check with your insurance carrier for actual premium quotes and costs, as well as the actual amount of the deposit.
- The cost of coverage will vary based on the area in which your business will be located, your experience with the insurance carrier, the loss experience of the carrier, the amount of deductibles and of coverage, and other factors beyond 101 Mobility’s control.
- You should also check with your insurance agent or broker regarding any additional insurance that you may wish to carry above 101 Mobility’s required minimums.
14. Professional Fees: $500 to $5,000
- This estimate is for the cost of engaging an attorney, accountant, or other business advisors to assist you in reviewing the disclosure document, the Franchise Agreement, and any other contracts related to your Franchised Business as well as to assist you in the formation of a legal entity to act as the franchisee and to research and evaluate any applicable legal, regulatory, and licensing requirements.
15. Licenses and Permits: varies
- The cost of licenses and permits required to open and operate the Franchised Business varies widely from state to state, and it is your responsibility to determine the costs applicable to your Franchised Business.
16. Additional Funds for Initial 6 Months: $20,000 to $50,000
- This is an estimate of the amount of additional operating capital that you may need during the first 6 months after opening your Franchised Business.
- This estimate includes additional funds for such items as employee salaries and wages, payroll taxes, fuel costs, credit card facility fees, legal and accounting fees, additional advertising, health and workers’ compensation insurance, bank charges, supplies and equipment, staff recruiting expenses, state tax and license fees, deposits, prepaid expenses, and other miscellaneous items.
- This estimated range does not include financing payments and costs.
17. Total: $135,790 to $258,620