Grasons Estate Sales Franchise Costs: Estimated Initial Investment (Item 7, 2023 FDD)
1. Initial Franchise Fee: $49,900
- The Initial Franchise Fee for a Franchised Business is $49,900. If you choose to sign a second Franchise Agreement, the initial franchise fee for the second Franchised Business will be reduced to $39,900. If you choose to sign a third Franchise Agreement, the initial franchise fee for the third Franchised Business will be reduced to $34,900.
- The Initial Franchise Fee is due and payable in full when you sign the Franchise Agreement and is non-refundable under any circumstances.
2. Computer Systems: $450 to $5,900
- You will need a laptop or tablet computer and software, including POS software, that Grasons specifies.
- The low-end estimate assumes you already own a laptop or tablet that you use for the business. The high-end estimate assumes you do not have your own computer, and you purchase a new approved register stand, drawer, and tablet for your POS system.
3. Insurance: $500 to $3,000
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4. Vehicle: $0 to $3,000
- You must have a vehicle to be used for the operation of your franchise. Grasons does not require any particular type of vehicle. It must be in good condition, clean, dent-free, and otherwise presenting a professional appearance.
- The low end assumes you will use your current vehicle in the operation of the Franchised Business. The high end assumes you purchase a vehicle for use in the Franchised Business.
5. Office Expenses/Supplies: $950 to $1,200
- Grasons anticipates that you will operate from a home office which must be located in your Territory and this estimate assumes that you will operate from a home office. However, you must have a valid business mailing address (i.e., not a residential address) for the business prior to opening, the cost of which ranges between $100 to $400 annually.
6. Licenses and Permits: $500 to $1,500
7. Dues and Subscriptions: $1,000 to $3,000
8. Professional Fees (lawyer, accountant, etc.): $0 to $7,500
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9. Travel, Lodging, and Meals for Initial Training: $1,500 to $2,000
10. Manager’s Salary: $0 to $20,000
- The business must at all times be under the supervision of a general manager (whether that is you or a hired person) who has successfully completed Grasons’ training program.
- The low range above assumes that you, the franchisee or Operating Principal, serve as the general manager. The high number represents an absentee owner who has hired two individuals to manage the business and assumes a $40,000 salary per individual, or $10,000 per individual over the first 3 months of operations.
11. Additional Funds (for First 3 Months): $4,000 to $12,000
11. Total Estimated Initial Investment: $58,800 to $109,000
- This includes any other required expenses you will incur before operations begin and during the initial period of operations, such as payroll, additional inventory, folding tables, tablecloths, pop-up tent, sales tags, blue tape, rent, 3 months of local advertising, and other operating expenses.
- In formulating the amount required for additional funds, Grasons relied on the following factors, basis, and experience: the experience of its franchisees and its general knowledge of the industry.