Question

Fix 4 Less is a company for cellphone repair. The business offers variety of services such as refurbishing the screens, selling the parts online (amazon, eBay and bonanza), retail store for walk in customers and mobile repair services for those who don't have time to leave their homes or works. Business would like to add one more service which is selling the parts wholesale to other retail stores in the same market. After everything is settled business is planning to sell franchise nationwide. I need Capital Requirements, Start-up Expenses, Monthly Expenses, Sales Forecast and Income Statement for Fix 4 Less. If you need any more info please state it.

Answer 1

Fix 4 Less Franchise Estimations: (Roughly)

1.Capital requirements vary from low end $25000 to high end which depends fortunately on your investment capabilities.

2. Expenses such as professional fee for a Notary and Accountant shall be done for reviewing the contract and accounting the numbers thereof. These would be the start up expenses for this kind of franchise and depends directly on the fame of the notary and the accountant.

3. Expense for franchise fee say in the example $25000 is to be paid to the particular you are interested in to take up and no further costs are to be put up as the brand you franchised will itself take care of all the other things like marketing, advertising, staff training and all those kind of expenses. So, it's a one time fee.

4. Sales depends on the retainment of the customers and the number of sales happened to determine the sales volume and obviously the profit margin. 80% of franchisee start ups fail due to improper management. So the aspect of the sales forecast depends upon the franchisee and the sales volume to the foundation.

5. Income also depends on the aspect explained in point 4 and implied the income statement.