|
FOREST OF FLOWERS® START-UP INVESTMENT CAPITAL
REQUIRED
|
|
A.Franchise Fees |
Low
|
High
|
Typical
|
|
Franchise Fee |
$25,000 |
$25,000 |
$25,000 |
B. Site Development and Construction |
|
|
|
Site Selection & Design |
$7,000 |
$10,000 |
$9,000 |
Leasehold Improvements |
$16,000 |
$52,000 |
$45,000 |
Fixtures & Equipment |
$10,000 |
$19,500 |
$18,000 |
Software License Fee |
$10,000 |
$10,000 |
$10,000 |
Computers & Printers |
$3,000 |
$5,000 |
$4,000 |
Exterior Signage |
$2,000 |
$10,000 |
$8,500 |
Interior Signs & Marketing Material |
$2,500 |
$5,000 |
$4,000 |
C. Pre-Opening |
|
|
|
Website License Fee |
$2,500 |
$2,500 |
$2,500 |
Training Tuition |
$0 |
$0 |
$0 |
Travel & Accommodation During Training |
$0 |
$3,000 |
$3,000 |
Legal & Accounting Fees |
$2,500 |
$4,500 |
$3,500 |
Last Month's Rent & Security Deposit |
$2,500 |
$3,500 |
$3,000 |
Utility & Other Deposits |
$500 |
$1,000 |
$800 |
D. Opening |
|
|
|
Cash Float |
$200 |
$200 |
$200 |
Opening Inventory - Cash Portion * |
$1,500 |
$1,500 |
$1,500 |
Opening Promotion & Advertising |
$5,000 |
$7,500 |
$7,000 |
|
Total Start-up Investment Required |
$90,200 |
$160,200 |
$145,000 |
|
Working Capital |
$10,000 |
$25,000 |
$20,000 |
|
Assumes 900 sq.ft.store |
|
|
|
* Opening inventory is 1/3 cash, 2/3 terms |
|
|
|
|
Unencumbered Capital Required
|
Approx
$50,000 |
|
Total Net Worth Required for Bank Financing
|
$175,000
to $250,000 |
|
ON-GOING FEES |
|
Franchise Royalty Fee on Sales |
5.0%
of Gross Sales |
|
Advertising Fee
|
2.5% of Gross Sales |
|
PROFIT POTENTIAL COMPARES FAVOURABLY TO AVERAGE ONTARIO
FLORIST |
|
Forest
of Flowers® |
Ontario
Industry
Average*** |
Sales |
$414,000 |
$293,500
|
|
Gross Profit* |
$236,000 |
$154,400
|
Marketing |
$12,600 |
$6,800
|
Salaries** |
$96,000 |
$64,300
|
Other Expenses |
$55,700 |
$39,700
|
Fixed Expenses |
$32,000 |
$26,100
|
Total Operating Expenses |
$196,300 |
$136,900
|
EBITDA - Earnings before Int., Taxes, Dep/Amort |
$40,000 |
$17,500
|
EBITDA + Manager's Salary |
$81,000 |
|
|
* Forest of Flowers® Gross Profit includes provision
for 5% franchise royalty fee
** Forest of Flowers® Salaries includes for $41,000
for manager's salary
*** Ontario Industry Average - source Industry Canada
website |
|
FOREST OF FLOWERS® FIGURES ARE BASED ON MOST RECENT
3 YEARS ACTUAL WEIGHTED AVERAGE.THERE
IS NO GUARANTEE OR ASSURANCE THAT ANY FOREST OF FLOWERS®
STORE WILL MAINTAIN SUCH LEVEL OF PROFITABILITY |
|
