Archadeck Outdoor Living Franchise Costs: Estimated Initial Investment (Item 7, 2021 FDD)
- The franchisor has based the estimates below on its predecessor’s experience operating or franchising the Construction Sales and Service Business, as well as the experience of its franchisees in the Businesses.
- All payments to Archadeck are non-refundable. The NGC and other third-party suppliers and providers will decide if payments to them are refundable.
1. Franchise Fee: $32,175 to $49,500
- The low end of the range assumes that you qualified for the Existing Franchisee Additional Concept Discount of 20% off the initial fee and a VetFran discount of 15% off the initial fee (for a total discount of 35% off the initial franchise fee).
- The high end of the range assumes that you paid Archadeck’s standard initial fee.
- In limited circumstances, Archadeck may offer to finance up to 50% of your initial franchise fee.
2. Guarantee Fund Initial Payment: $5,000
3. Tools and Equipment: $1,000 to $2,500
- This includes miscellaneous work tools and equipment, like drillers, hammers, ladders, and other general tools, if you do not already have them.
- This assumes that you will purchase these items. However, some of the work tools and equipment may be available on a lease basis, and if acquired on a lease basis, the initial investment should be less.
4. Travel and Living Expenses While Training: $2,500 to $4,500
- Archadeck provides training at its corporate office located in Richmond, Virginia or at another location it designates.
- You must pay for airfare, meals, transportation costs, salaries, benefits, lodging, and incidental expenses for all initial training program attendees.
5. Computer Hardware and Software: $3,900 to $4,800
- This includes costs related to the purchase of specified computer hardware (currently 1 computer with a printer), architectural design software, and other software (MS Office).
- This estimated range includes the $2,000 that you must pay Archadeck for the SoftPlan software.
6. Start-up Advertising for First 3 Months: $7,500 to $15,000
- Includes estimated amounts of National Branding & Marketing Fees paid to Archadeck and local marketing, advertising, and promotional expenditures.
7. Start-Up Expenses and Working Capital for First 3 Months: $6,550 to $22,250
- This is for budgeting purposes only to account for unanticipated expenses.
- This amount includes estimated operating expenses you should expect to incur during the first 3 months of operations, not including any Gross Sales generated by your Construction Sales and Service Business.
- It includes estimated payroll costs, security and other deposits, the Technology Fee, fees for city, state and local business licenses, bonds, quarterly insurance premiums, business entity organization expenses, office supplies, Internet and cell phone service, other prepaid expenses, accounting, legal and other professional fees, and other operational expenses.
- These figures do not include any taxes that you may pay. You should check with your local and state governmental agencies for any taxes that may be assessed.
- Most new franchisees do not hire employees during the initial period and the range does not include any estimate of compensation that you may choose to draw from the business.
8. Total: $58,625 to $103,550