ITEM 7: YOUR ESTIMATED INITIAL INVESTMENT
To whom payment
is to be made
Initial franchise fee $15,000 (note 1) Lump sum At signing of
Travel and living
$2,500 to $5,000 As incurred During training Airlines, hotels, and
Real estate and
(Note 2) (Note 2) (Note 2) (Note 2) Equipment $40,000 (note 3) Lump sum Prior to opening Belmont or vendors Signs $2,200 Lump sum Prior to opening Abbey Sign
$8,000 (note 4) As incurred As incurred Suppliers, utilities,
Opening inventory $8,800 (note 5) Lump sum Prior to opening Belmont or vendors Advertising fee –
$500 As incurred
(% of gross sales)
Monthly Belmont Additional funds –
$23,000 to $45,000 As incurred As incurred Employees,
$124,500 (note 8)
(Does not include
real estate costs)
- See Item 5 for the conditions when this fee is partly refundable. W e do not finance any fee.
- If you do not own adequate shop space, you must lease the land and building from us. Typical
locations are light industrial and commercial areas. The typical Belmont Mufflers Shop has 8,000
square feet. Former three-or-four-bay gasoline service stations have been converted into a
Belmont Mufflers Shop. Rent is estimated to be between $52,000 – $120,000 per year
depending on factors such as size, condition, and location of the leased premises.
- This payment is fully refundable before equipment installation. After installation, we deduct
$3,000 installation costs from your refund.
- This includes security deposits, utility costs, and incorporation fees.
- This payment is fully refundable before we deliver your inventory. After delivery, we will deduct a
10% restocking fee from your refund.
- This estimates your start-up expenses. These expenses include payroll costs. These figures
are estimates and we cannot guarantee that you will not have additional expenses starting the
business. Your costs will depend on factors such as: how much you follow our methods and
procedures; your management skill, experience and business acumen; local economic
conditions; the local market for our product; the prevailing wage rate; competition; and the sales
level reached during the initial period.
- Except as indicated, we do not offer direct or indirect financing to franchisees for any items.
- We have relied on our 24-years of experience in the muffler business to compile these
estimates. You should review these figures carefully with a business advisor before making any
decision to purchase the franchise.