Here’s a look at the initial investment
to start the business
Franchise candidates with a net worth of at least $300,000 and liquid assets of at least $100,000 are likely to qualify for financing to help cover the initial investment needed to open their own EarthWise Pet franchise. Startup costs for a standard franchise location of 1,600-2,200 square feet range from $230,500 to $565,500.
The details of expected costs for an EarthWise Pet franchise are outlined in the Franchise Disclosure Document Item 7 shown below.
Making an investment in your future by establishing an EarthWise Pet franchise can be one of the most important decisions you’ll make. Review the referenced financial documents and discuss startup costs with your business advisors before deciding to purchase a franchise or making any expenditure.
Please note: Some mobile devices and screens may require you to scroll horizontally to see the full chart. Alternatively, complete the form at the bottom of this page and we will email you a link to a PDF version of Item 7.
|EXPENDITURE||AMOUNT||PAYMENT METHOD||WHEN DUE||TO WHOM|
|Initial Franchise Fee||$39,500||Cash, Cashier’s check, ACH, or bank wire transfer||See Note 1, below||Us|
|Initial Training Fee||$19,500||Cash, Cashier’s check, ACH, or bank wire transfer||See Note 2, below||Us|
|Utilities Deposits and Payments||$1,000 to $3,000||As required by vendor||As Incurred||Landlord, Utility Companies and Suppliers|
|Furnishings, Fixtures and Equipment||$20,000 to $60,000||As required by vendor||Upon Our Approval of Store Layout||Us or Approved Suppliers|
|Customized Point of Sale System Software||$3,600 to $4,500||As required by vendor||Upon Our Approval of Store Layout||Us|
|Computer Hardware and Other Software||$3,900 to $7,500||As required by vendor||Upon Our Approval of Store Layout||Us|
|Security System||$500 to $3,000||As required by vendor||Upon Our Approval of Store Layout||Approved Suppliers|
|Tenant Improvements||$30,000 to $175,000||As required by vendor||Before Opening||Landlord, Suppliers|
|Signage||$5,000 to $20,000||As required by vendor||As Incurred||Us or Approved Suppliers|
|Franchise Premises Rent (deposit and 3 months) (Note 3)||$15,000 to $30,000||As required by vendor||As Incurred||Landlord|
|Inventory||$40,000 to $75,000||As required by vendor||Before Opening||You May Purchase (but are Not Required to Purchase) Some of the Initial Inventory from Us. You Must Purchase the Remainder of the Initial Inventory from Approved Suppliers.|
|Travel and Living Expenses While Training||$500 to $7,500||As required by vendor||During Training||Airlines, Hotels, Restaurants, etc.|
|Grand Opening Advertising||$9,000 to $24,000||As required by vendor||Before and in Conjunction with Opening||Suppliers|
|Insurance||$2,000 to $3,500 (first three months)||As required by vendor||As Incurred||Insurance Provider(s)|
|Additional Funds – 3 Months (Note 5)||$41,000 to $93,500||As required by vendor||As Incurred||Employees, Suppliers, Miscellaneous, etc.|
|TOTAL||$230,500 to $565,500|
The standard Initial Franchise Fee is payable $20,000 upon signing the Franchise Agreement, and the $19,500 balance is due 15 days after you sign the Franchise Agreement. However, for your second and any additional franchises you purchase simultaneously from us, the Initial Franchise Fee is reduced (by as much as 50% of the standard Initial Franchise Fee depending upon the number of franchises purchased simultaneously) and is payable as described in Items 5 and 10 of the Franchise Disclosure Document.
The Initial Training Fee is payable upon signing the Franchise Agreement. However, for your second and any additional franchises, the Initial Training Fee is $8,500 and is paid to us at the time the corresponding training is scheduled. However, in our discretion, we may choose to waive your obligation to pay the Initial Training Fee and to participate in additional training for your second and any additional franchises.
The figures in the Table above represent the estimated range for the security deposits and lease payments during the first three months of operation. You are solely responsible for obtaining and paying for a location for the franchise. The cost of purchasing or leasing premises for the franchise varies with the location and size of the premises. The recommended size of a Franchise Premises is from 1,000 to 3,500 square feet of merchandisable space (1,500 to 4,000 gross lease space). We will provide all specifications for your build out so that all franchise locations are regimented. A typical build out cost for your premises is $10 to $50 per square foot if applicable, which may or may not be paid for by the landlord as tenant improvements under the lease arrangement. You will be responsible for any build out costs not covered by your landlord as tenant improvements.
This fee is paid to us for grand opening public relations services provided by our third-party provider.
A minimum of $50,000 to $100,000 working capital is strongly recommended. You should plan on other sources of income to cover your living expenses. You will have the other usual expenses involved in establishing a business. These expenses vary greatly. They include, but are not limited to, attorney fees; sales tax bonds (where required); employee wages; incorporation costs; business licenses, certificates and permits; and office supplies. You must pay all taxes required by local, state or federal laws related to the services furnished or used in connection with the operation of a Franchise. You are required to have access to a facsimile machine, telephone, email, and reliable transportation.
We estimate that the initial phase covered by the additional funds estimate will be approximately three months. Additional funds are provided only as estimates and apply only to your initial three months of operations of your first Franchise. The high and low range estimates are based on the experiences of our officers and affiliate in opening and operating similar businesses in Oregon. Your actual costs will depend upon many factors, including, how well you follow our directions and suggestions, your business skill and experience, local economic conditions and the local market.
Amounts paid to any third parties may be refundable, depending upon the contracts between them and you. Any fees paid to us are not refundable.
You should review these estimates with your business advisors before you decide to purchase the franchise or to make any expenditure.