The Camp Transformation Center Franchise Costs: Estimated Initial Investment (Item 7, 2022 FDD)
1. Initial Franchise Fee: $40,000
- You must pay the initial franchise fee when you sign the Franchise Agreement and prior to opening your Center. It is not refundable for any reason.
2. Travel and Living Expenses for Training: $2,000 to $5,000
- You must pay for the expenses of attendance, such as lodging, meals, transportation, and wages of trainees. Each Center must have at least one trained and certified manager.
- The cost will depend on the distance you travel, type of accommodations you choose, the number of your employees attending training, and their wages. More than three trainees will increase these expenses and cost additional fees of $500 each per week.
3. Rent and Lease Deposit: $8,000 to $12,000
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- These estimates are the initial lease costs and are based on the assumption that you will lease your Center. A new Center must have 4,000 to 6,000 square feet of indoor space, typically in a light industrial center with large doors that open to the outside.
- A lease normally requires payment of the first month’s rent and a deposit equal to a second month’s rent. The levels of rent vary widely from area to area and for different locations within the same area. A location within a large shopping center may be smaller, but require higher rent.
- You should investigate all these costs in the area, and for the specific site where you wish to establish your Center.
4. Construction Costs: $40,000 to $60,000
- Lessors will often contribute to the cost of remodeling or constructing the space for your Center. You will follow the franchisor’s standard development procedures and adapt them to meet the specific requirements of your proposed Center.
- Costs vary widely from area to area and for different locations within the same area. You should investigate all these costs in the area, and for the specific site, where you wish to establish your Center.
5. Furniture, Fixtures, Gym Equipment, Office Equipment: $80,000 to $110,000
- This is an estimate of the cost of leasing or purchasing required Center equipment, fixtures, furniture, and supplies.
- The Manual contains a list of mandatory items for new Centers with instructions for site variations. Although you are not prohibited from doing so, the franchisor does not recommend that you purchase additional or upgraded items other than as specified in the Manual.
- This estimate includes the $5,000 to $12,000 estimated cost of leasing or purchasing computers and related technology for the required POS, CRM, and financial reporting systems.
6. Initial Inventory: $3,000 to $6,000
- The initial inventory consists primarily of supplements, accessories, apparel, and supplies. The amount will vary depending on the sales volume you anticipate as well as current market prices.
7. Permits and Licenses: $3,000 to $10,000
- You must obtain all necessary business permits, licenses, and approvals to operate the Center. The costs of these licenses and other licenses and permits vary widely from area to area. You should contact an attorney and the government authorities in your area for information about the cost and level of difficulties in obtaining all necessary permits.
8. Signage: $6,000 to $8,000
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9. Insurance, Miscellaneous Deposits, and Prepaid Expenses: $6,000 to $10,000
- Insurance is included in this amount. You should have funds for one year’s estimated insurance premium for property and liability insurance. The cost of insurance varies depending on many factors. You should contact your insurance agent and obtain an estimate of your actual insurance costs.
- This is an estimate of additional funds you may need during the initial period of operation of the Center, which the franchisor defines as three months from opening. New businesses often generate a negative cash flow initially, so additional funds may be needed to support ongoing expenses such as payroll, rent, royalties, Marketing Fund contributions, inventory, utilities, and business licenses, to the extent that aggregate costs are not covered by your revenue.
- The estimate does not include any compensation that you may choose to pay yourself.
- The franchisor cannot guarantee that you will not have additional expenses starting your business.
- Your costs will depend on many factors, such as how closely you follow the System and its procedures, the local market for Center products, the prevailing wage rate, competition, and the sales level reached during the initial period.
- The franchisor relied on its and its affiliate’s experience in operating Company Centers when formulating the estimate for additional funds.
10. Additional Funds for 6 Months: $50,000 to $75,000
- This is an estimate of additional funds you may need during the initial period of operation of the Center, which the franchisor defines as 6 months from opening. The estimate does not include any compensation that you may choose to pay yourself.
11. Total: $238,000 to $336,000