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Financial Information
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Financial Criteria
UNITS has established the following minimum financial requirements for new franchisee partners:
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A minimum net worth of $1,000,000
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A Minimum of $200,000 liquid capital
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Initial Investment
| Expense |
Description |
Small |
Large |
| Franchise Fee |
This is a one time fee charged to all franchisees and covers the cost of your UNITS franchise License. |
$50,000 |
$75,000 |
| Real Estate, Rent |
You must lease or otherwise acquire a suitable facility for the operation of the franchised business. |
$6,000 |
$22,500 |
| Utility Deposits, Licenses, etc. |
This estimate is for miscellaneous opening costs and expenses such as installation of telephone, deposits for gas, electricity and other services, business licenses, vehicular registrations, legal and accounting expenses for your start up period. |
$2,400 |
$2,650 |
| Leasehold Improvements |
Depending upon the remodeling requirements or build out of your intended location we have estimated your initial cost to be in this range. |
$0 |
$5,000 |
| Insurance |
This is the estimated cost of insurance for the first year of operation which is paid directly to the insurance company. |
$7,500 |
$16,100 |
| Initial Inventory |
You must purchase an initial inventory of packing, moving supplies uniforms and other equipment. |
$3,925 |
$9,025 |
| UNITS Containers |
These figures exclude freight costs. The low figure estimates your cost to lease the containers (including a 25% down payment plus one month of debt service) while the high figure reflects your estimated cost to purchase the required number. Small market must order 24 containers and the large market 52 containers. |
$22,640-
$90,560 |
$48,340-
$193,360 |
| Freight Costs |
These are the estimated costs of shipping the containers form the manufacturing plant to your warehouse facility. |
$2,800-
$5,600 |
$10,00-
$25,000 |
| Lifts and Trucks |
This reflects the estimated cost to lease one forklift and truck which meet our specifications. |
$6,000-
$7,500 |
$6,000-
$7,500 |
| Signage |
This range includes the cost of all signage used in the franchise business. |
$200-
$5,000 |
$200-
$5,000 |
| Information Technology Equipment & Services |
The low estimate in this range includes the costs of required equipment, hardware and software, installation, set up, initial access fees and miscellaneous costs. The high estimate reflects the possibility that you may choose to install added features or an additional workstation. |
$3,000-
$6,000 |
$3,000-
$6,000 |
| Grand Opening and Start-up Marketing |
This figure represents a minimum that must be spent on Grand Opening advertising during the first 3 months of operation excluding Yellow Pages advertising. |
$10,000 |
$10,000 |
| Training |
This range is an estimate of what you may spend towards transportation, food and lodging while attending new owner training. |
$1,500-
$3,000 |
$1,500-
$3,000 |
| Additional Funds |
We recommend that you have a minimum amount of money available to cover operating expenses including employees, salaries and lease costs for the first three months that the franchise business is open. However we cannot guarantee that our recommendation will be sufficient. Additional working capital may be required. |
$38,058 |
$62,670 |
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TOTAL
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$154,023-
$295,605 |
$214,923-
442,805 |
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Return on Investment (ROI)
This is probably your biggest question and no one can blame you. How much money will you make? Profits are important for any business, however, for legal reasons, UNITS is not permitted to answer this question. This what the federal government refers to as a Financial Performance Representation and this information is strictly regulated.
Instead, UNITS encourages you to take a look at what our existing franchise partners have made in the past. This is what we refer to as Validation. The average store sales data is included as part of the Financial Disclosure Document (FDD) which you will receive after demonstrating a serious interest in opening a franchise. You will be able to create your own projected P&L and breakeven estimate after talking to other franchisees and making your own projections based on your market.
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