NAME OF EXPENDITURE | ESTIMATED AMOUNT OR ESTIMATED LOW-HIGH RANGE* | WHEN DUE | METHOD OF PAYMENT | WHETHER REFUNDABLE | TO WHOM PAYMENT IS MADE |
INITIAL FRANCHISE FEE1 | $35,000 | Upon signing the Franchise Agreement &, if applicable, Development Rights Rider | Lump Sum Check or Cash | Partially refundable under certain circumstances (see Item 5) | Franchisor (Jimmy John’s Franchise, LLC) |
REAL ESTATE/RENT2 (1 MONTH) | $2,500 – $6,000 | As Incurred | As Agreed | No | Landlord |
REAL ESTATE
SECURITY DEPOSIT | $2,500 – $6,000 | As Incurred | As Agreed | Yes | Landlord |
LEASEHOLD IMPROVEMENTS3 | $100,000 – $175,000 | As Incurred | As Agreed | No | Outside Suppliers |
FURNITURE, FIXTURES, EQUIPMENT, SIGNS4 | $70,000 – $80,000 | As Incurred | As Agreed | No | Outside Suppliers |
ARCHITECT | $4,000– $10,000 | As Incurred | As Agreed | No | Architect |
OFFICE EQUIPMENT5 | $2,500 | As Incurred | As Agreed | No | Outside Suppliers |
UTILITY DEPOSITS6 | $1,000 – $2,000 | As Incurred | As Agreed | Yes | Utility Companies |
OPENING INVENTORY & SUPPLIES7 | $6,000 | As Incurred | As Agreed | No | Designated & Approved
Suppliers |
GRAND OPENING
MARKETING8 | $5,000 | As Incurred | As Incurred | No | Advertising Sources |
TRAINING EXPENSES (out-of-pocket cost for 2 people) | $6,000 – $10,000 | As Incurred | As Incurred | No | Third Parties |
INSURANCE9 | $4,500 – $9,500 | As Incurred | As Incurred | No | Insurance Company |
Misc Expenses10 | $2,000 – $10,000 | As Incurred | As Incurred | No | Advisors and others |
ADDITIONAL FUNDS - 3MONTHS11 | $63,500 | As Incurred | As Incurred | No | Employees & Suppliers |
TOTAL ESTIMATED INITIAL INVESTMENT (excluding real estate purchase costs) | $304,500 – $420,500 | | | | |
ONGOING | Royalties - 6% Advertising - 4.5% | Weekly | Bank Transfer | No | Franchisor (Jimmy John’s Franchise, LLC) |