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UNITED STATES CAPITAL REQUIREMENTS
| BREAKDOWN FOR: |
(in USA $) |
| Lower Cost Store |
Higher Cost Store |
| Franchise Fee |
$20,000 |
$20,000 |
| First Month Rent & Deposit (*) |
3,000 |
8,000 |
| Leasehold Improvements |
65,000 |
95,000 |
| Equipment & Furniture Package |
30,000 |
55,000 |
| Freight Charges |
2,000 |
5,000 |
| Security System (not including monitoring costs) |
0 |
3,000 |
| Architectural Design & Engineering Fee |
3,000 |
8,000 |
| Exterior & Interior Signage |
5,000 |
10,000 |
| Opening Inventory |
4,000 |
5,000 |
| Insurance |
1,500 |
3,500 |
| Travel & Living Expenses While Training (including travel and accommodation) |
1,000 |
4,000 |
| Lease Negotiation Fee |
0 |
5,000 |
| Software & Hardware |
500 |
2,000 |
| Opening Advertising |
1,500 |
3,000 |
| Miscellaneous Expenses (Business licenses, utility and telephone deposits, supplies, uniforms, professional fees) |
3,000 |
10,000 |
| Additonal funds/Working Capital - 3 Months (**) |
15,000 |
30,000 |
| TOTAL INVESTMENT |
$154,500 |
$266,500 |
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| IMPORTANT: |
| (*) |
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 the amount of working capital that we recommend you have in your bank account upon store opening to cover various expenses during your first three months of operation, but is subject to change depending upon your circumstances. The range is based on estimated 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 six months of the Extreme Pita Store's operation. The exact amount of working capital required will vary considerably with each Extreme Pita Store but must be sufficient to finance your operations until the Extreme Pita Store produces positive cash flow. We have not included your personal living expenses in this estimate nor have we included any sales tax, or other use tax, income tax, or any other tax in this estimate. You should consult with your independent advisors to develop your own business plan with cash flow chart in order to ensure that you have the amount of capital necessary to cover any cash short fall in the initial months of operation since this is only 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.
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