Investment Summary
The following chart briefly lists the estimated start-up costs for a BBFC franchise:
Type of Payment
Estimated
AmountMethod of
paymentWhen due
To Whom Payment
Is MadeInitial Franchise Fee
$5 per retail licensee within exclusive territory
(min. 2,000 licensees)Lump sum
Upon execution
of the Franchise AgreementFranchisor
Opening Inventory
$25,000
Lump sum
Upon execution
of the Franchise AgreementFranchisor
Office/Warehouse
$1,000 - 3,000
As arranged
Prior to opening
Leasor
Shipping Costs
(per shipment)Variable
(approx. $5 per case plus fuel surcharge)Lump sum
As incurred
Shipping
companyTelecommunications
(phone, fax, etc.)
$500
As arranged
Prior to opening
Third parties
Travel cost for initial training
$1,500 - 2,000
As arranged
As incurred
Third parties
Insurance
(Auto and Commercial)
$1,000 - 2,000
As arranged
Prior to opening
Third parties
Licenses and Permits
$1,000 - 3,000
As arranged
Prior to opening
Government agencies
Legal, accounting and payroll fees
$1,500 - 3,000
As arranged
As incurred
Third parties
Delivery van
$1,000 - 2,000
(down payment)As arranged
As incurred
Third parties
Computer hardware and software
$3,000
As arranged
As incurred
Third parties
Marketing and promotional materials
$500
As incurred
Prior to opening
Third parties
Working capital $25,000 As needed n/a n/a
TOTAL: $71,000 - 76,000
© 2007 Borvin Beverage Franchise Corporation
1022 King Street
Alexandria, VA 22314
Phone: (703) 683-9463 | Fax: (703) 836-6654 | Email: info@borvinbeverage.com