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Home / Franchise /
CANADIAN CAPITAL REQUIREMENTS
| BREAKDOWN FOR: |
(in CDN $) |
| Lower Cost Store |
Higher Cost Store |
| Franchise Fee (*) |
$15,000 |
$15,000 |
| Leasehold Improvements |
80,000 |
95,000 |
| Equipment & Furniture Package |
60,000 |
68,000 |
| Freight Charges |
- |
5,000 |
| Security System (not including monitoring costs) |
0 |
3,000 |
| Architectural Design & Engineering Fee |
3,000 |
5,000 |
| Exterior and Interior Signage |
5,000 |
10,000 |
| First Month Rent & Deposit (**) |
2,000 |
7,000 |
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| Subtotal of Initial Store Costs |
165,000 |
208,000 |
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| Opening Inventory |
4,000 |
5,000 |
| Real Estate Brokerage Fee |
0 |
7,500 |
| Insurance |
1,200 |
1,600 |
| Training Expenses (including travel and accommodation) |
500 |
3,500 |
| Legal and Accounting Fees |
500 |
4,000 |
| Opening Advertising |
1,000 |
3,000 |
| Miscellaneous Expenses (Business licenses, utility and telephone deposits, supplies, uniforms) |
2,000 |
9,500 |
| Additonal funds/Working Capital - 3 Months (***) |
10,000 |
15,000 |
| TOTAL INVESTMENT |
$184,200 |
$257,100 |
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| IMPORTANT: |
| (*) |
Franchise Fee: We reserve the right to allow you to construct your own store if we believe that you are capable of doing so and ensuring that the construction is done in accordance with our standards. In such event, we will charge you a Franchise Fee of $20,000 (rather than our standard fee of $15,000) in order to compensate for our time in supervising the construction of your store. |
| (**) |
First Month Rent & Deposit: This amount represents the estimated deposit of 2 months rent payable to your landlord upon the signing of the Offer to Lease. |
| (***) |
Additonal funds/Working Capital - 3 Months: This is an estimate of the range of working capital that we recommend you have in your bank account upon store opening, but it is subject to change depending upon your circumstances. This range is based on roughly anticipated working capital, wages, food and beverage costs, supplies, utilities, ordinary maintenance, and other normal day-to-day operating expenses. In addition to the items listed above, you should be prepared to have cash available to pay your personal living expenses for at least the first 6 months of the Store's operation. The exact amount of Working Capital required will vary considerably with each Store but must be sufficient to finance your operations until the store produces positive cashflow. We have not included your personal living expenses in this estimate nor have we included any sales tax, GST or other use tax, income tax, or any other tax. You should consult with your independent advisors to develop your own business plan with a cashflow chart in order to ensure that you have the amount necessary to cover any cash short fall in the initial months of operation, as, once again, the range provided is simply an estimate.
THE ABOVE-NOTED FIGURES ARE ESTIMATES ONLY OF YOUR INVESTMENT IN ESTABLISHING AN EXTREME PITA? STORE AND OPERATING IT FOR 3 MONTHS. IT IS POSSIBLE THAT THE ACTUAL COSTS MAY SIGNIFICANTLY EXCEED SOME OR ALL OF THE COSTS IN ANY OF THE AREAS LISTED ABOVE.
Some costs will vary in relation to the physical size of the store, location, area, landlord design criteria and contractor pricing in each area. A lower cost store is one that would require fewer leasehold improvements, less seating and fewer equipment expenditures. Moderate and higher cost stores may require extensive interior renovations, extensive seating and additional equipment. If you are purchasing a store for another location opportunity, such as a non-traditional, satellite or school location, the above listed capital requirements may vary considerably and could be substantially lower depending upon the necessary equipment you must acquire or changes in leasehold improvements you must make. The above figures do not include extensive exterior renovations, provincial sales tax, value-added tax, including the goods and service tax, or any other tax.
For additional and more specific details of your estimated initial costs, please Contact Us to request our Franchise Disclosure Document (Canada).
Please feel free to Contact Us to learn more about franchise opportunities at 1-888-729-PITA (7482)
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