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Expenditures Low High Due Payment Refund Policy Recipient
Initial Franchise Fee
( Note 1 )
$35,000 $50,000 At Signing Lump Sum Partially refundable if you fail to complete satisfactory initial training Sunsera
Leasehold Improvements
( Notes 2 & 3 )
$100,000 Depending upon Landlord $175,000 Before Opening As incurred A Portion to be refunded from the Landlord for Leasehold allowance negotiated at signing Sunsera
& Other Suppliers
Furniture, Computer, Software & Signage
( Note 3 )
$210,000 $300,000 Before Opening As incurred No Sunsera
& Other Suppliers
Opening Inventory
& Supplies

( Note 4 )
$20,000 $30,000 Before Opening Lump Sum No Sunsera
& Other Suppliers
Security Deposits, Utility Deposits, Business Licenses $25,000 $35,000 Before Opening As incurred Deposits are refundable; Business licenses are not Other Suppliers
Grand Opening
( Note 5 )
$5,000 $5,000 As Incurred As agreed No Sunsera
& Other Suppliers
Additional Funds
3 Months
( Note 6 )
$50,000 $70,000 As Incurred As incurred No Other Suppliers
Initial Investment
( Note 7 )
$420,000 $665,000 Estimated Total Initial Investment

 

Notes

 

Note 1 : Initial Franchise Fee

The fee will vary based on various criteria including the population and general demographics of the protected territory the franchisee is awarded.

Note 2 : Leasehold Improvements

You must purchase or lease commercial retail Salon space which meets our standards and specifications. Real estate costs vary widely from location to location, so we have not estimated your real estate expenditures. The estimate above only covers limited leasehold improvements such as painting and other improvements by you. These costs may vary significantly from market to market.

Note 3 : Furniture, Signs, Computer Hardware & Software

This includes the estimated cost to equip your salon with all required computers and software for the operation of the business.

Note 4 : Opening Inventory

You must open with and maintain an inventory of Sunsera Salons approved hair and tanning products. You must also open with and utilize Sunsera Salons software (POS), a lap top, external hard drive and other supplies.

Note 5 : Grand Opening

You must spend between $5,000 as a minimum on marketing and promoting your Sunsera Salons Franchise seven days (7) prior to opening your Sunsera Salons and thirty days (30) after the opening of your Sunsera Salons Franchise. We must approve your grand opening marketing plan at least two (2) weeks in advance of the grand opening. We may make available to you for purchase, marketing and promotional materials for your use during the grand opening period.

Note 6 : Additional Funds

This estimates your pre-operational expenses, which we have not listed above, as well as additional funds necessary for the first three months of your business operations. These figures are estimates and Sunsera Salons cannot guarantee that you will not have additional expenses starting your business. Your costs will depend on factors such as: how much you follow our methods and procedures, management skill, experience and business acumen, local economic conditions, local market for our services, the competition and sales levels reached during this initial period. You are responsible for all travel and living expenses incurred while attending the initial training program.

Note 7 : Initial Investment

We relied on our founders’ 20 + years experience in a similar industry and our affiliates’ operation of Sunsera Salons for approximately 20 years when preparing these figures. You should review these figures carefully with a business advisor before making any decision to purchase a franchise. We do not offer any financing in connection with your initial investment. The availability and terms of financing from independent third parties depends on factors such as the availability of financing generally, your creditworthiness, other security and collateral you may have and policies of lenders.

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