TYPE OF EXPENDITURE AMOUNT8 METHOD OF PAYMENT WHEN DUE TO WHOM
PAYMENT IS TO BE MADE
Initial Franchise Fee1 $25,000 Lump sum When Franchise Agreement is signed Us
Lease Payments (3 months)2 $7,070 – $11,700 As arranged As incurred Landlord
Leasehold Improvements/Construction. Salon Layout, Architect, Engineer, Drawings, and Permits 3 $45,000 – $90,000 As arranged As required Contractors and third party suppliers, your architect and engineer
Salon Furniture and Fixtures4 $18,000 – $21,000 As arranged As required Approved suppliers
Gaming, Audio/Video, and Security Equipment and Appliances5 $9,500 – $11,500 As arranged As incurred Approved suppliers
Salon, Office, and Cleaning Supplies6 $5,500 – $6,000 As arranged As incurred Approved suppliers
Initial Retail Inventory $2,500 – $3,000 As arranged As incurred Approved suppliers
Signage $6,300 – $8,500 As arranged As incurred Approved suppliers
Business Software and Related Hardware7 $4,200 – $5,000 As arranged As incurred Approved suppliers
Pre-opening Training Expenses8 $1,000 – $2,000 As arranged Before opening Third party suppliers of transportation, food and lodging for you and your employees
Security Deposits9 $3,500 – $4,500 As arranged As incurred Landlord and utility providers.
Grand Opening Marketing Expenditure $5,000 – $10,000 As arranged As incurred Approved suppliers
Business Licenses, Permits, etc. (first year) $1,000 – $2,000 As agencies require As agencies require Applicable agencies
Insurance Deposits and Premiums (first year) $1,000 – $1,500 As agent requires Before opening Insurance carriers
Professional Fees (first year) $1,000 – $2,000 As arranged As incurred Your accountant, attorney, and other professionals
Additional Funds (three months)10 $20,000 – $35,000 As arranged As incurred Various
Grand Total11 $155,570 to $238,700 (assuming no subsequent locations)