Along with an initial franchise fee of $75,000, you will also need working capital or a secured line of credit of
approximately $100,000 to cover start-up costs and business operating expenses.
That means for around $200,000 total cash invested (assuming a portion of the franchise fee is financed), a new franchise owner can secure
the rights to an exclusive major market or city and have immediate access to a business model that has proven
successful for nearly half a century.
It is recommended that all new franchisees have a net worth of at least $250,000 (assets minus liabilities).
In the event financing is needed by a new franchisee, City Wide can recommend numerous financial institutions which specialize with franchise business start-ups and their unique needs.
Start-up Cost Estimates (included in the $100,000 as mentioned above)
| |
Low |
High |
| Travel & Living expenses while training in Kansas City |
$1,500 |
$2,500 |
| Real Estate Rent Deposit (3 months) |
$2,000 |
$4,000 |
| Leasehold Improvements |
$0 |
$0 |
| Utility and Misc. Security Deposits |
$0 |
$0 |
| Furniture, Fixtures and Equipment |
$1,000 |
$2,500 |
| Computer Equipment |
$5,000 |
$7,000 |
| Signage |
$0 |
$0 |
| Office Supplies |
$1,000 |
$1,500 |
| Advertising |
$4,500 |
$4,500 |
| Insurance |
$1,000 |
$2,000 |
| Additional Funds |
$8,000 |
$10,000 |
| Miscellaneous |
$1,500 |
$1,500 |
| |
|
|
| Total |
$25,500 |
$35,500 |
As with most franchises, there is an ongoing monthly royalty
paid by each franchisee as a percent of gross revenue.
During the first year of operation the monthly royalty is 3%; the second year, 4%; third year and beyond, 5%.
