TYPE OF EXPENDITURE AMOUNT8 METHOD OF PAYMENT WHEN DUE TO WHOM
PAYMENT IS TO BE MADE
Initial Franchise Fee1 $32,000 Lump sum When Franchise Agreement is signed Us
Lease Payments (3 months)2 $8,250 – $12,300 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 $10,000 – $20,000 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 $162,570 to $245,700 (assuming no subsequent locations)

Multi-Unit Development (3-Pack or More Units)

 

TYPE OF EXPENDITURE AMOUNT8 METHOD OF PAYMENT WHEN DUE TO WHOM
PAYMENT IS TO BE MADE
Development Fee1 $50,000 (3-Salons) Lump sum Upon execution of Development Agreement Us
Initial Investment to Open Initial Salon $130,570 to $213,700 Totals from the above Single-Unit Franchise chart of this Item 7 less the Initial Franchise Fee.
Grand Total12 $180,570 to $263,700 This is the total estimated initial investment to enter into a Development Agreement for the right to own a total of three Salons, as well as the estimated initial costs to open and begin operating your initial Salon for the first three months (as described more fully in the “Single Unit Franchise” chart above).