Details on your initial investment
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- Equipment. This estimate includes miscellaneous tools, including some hand tools (“Equipment”). You may use Equipment that you currently own, subject to our approval, provided the Equipment is in good working condition. We reserve the right to revoke any Equipment should it not meet minimum standards, as solely determined by us. The lower cost assumes rental expenses and includes the first three months of rental of the Equipment. The higher cost assumes outright purchase of all Equipment to minimize your ongoing expenses.
- Vehicle. STCM Business must use a dedicated vehicle (“Vehicle”) in order to make sales calls and transport Equipment to each job site. We require that the Vehicle meets our then-current specifications set forth in our Confidential Operations Manual. You may use a Vehicle that you currently own; provided that the Vehicle is in good condition with no major dents or scratches or body damage, subject to our approval. We reserve the right to revoke a Vehicle approval should the Vehicle no longer meet minimum standards, as solely determined by us. We anticipate that you will only need one Vehicle for the operation of your STCM Business, but you may utilize additional Vehicles. The low estimate assumes that you are using a Vehicle that you currently own and the high end of the estimate provides up to three months of lease payments on either a 36-month or a 48-month lease for one dedicated Vehicle.
- Vehicle Signage. This estimate includes the costs to fully brand the Vehicle.
- Registration and Taxes. This estimate includes the sales taxes and registration and license plate fees for your Vehicle imposed by your home state. The low estimate assumes that you are using a Vehicle that you currently own. You are required to pay all federal and state tax, title, licenses and other costs of titling the Vehicle. You should check with your local county clerk’s office or other governmental titling office for your state’s tax rate and the exact cost to title and license your Vehicle. You are solely responsible for any tax, title and licenses.
- Computer Hardware and Software. You will need a computer that is capable of connecting to the Internet both in the office and mobile.
- Office Equipment and Supplies. This estimate includes the cost of obtaining the necessary furniture, office equipment and supplies to set up a home office. The low estimate assumes you use existing office furniture. The high end includes the cost of purchasing office furniture.
- Call Center Fee. The Initial Call Center Fee includes the setup costs and your first three months of payments of the Call Center Fee, which is payable to us. The Call Center Fee is only paid during the nine-month seasonal period; therefore, these monthly fees are prorated over 9 months. See Item 6 and Item 11 for additional information.
- Technology Fee. The Initial Technology Center Fee includes the setup costs and your first three months of payments of the Technology Fee, which is payable to us. The Technology Fee is only paid during the nine-month seasonal period; therefore, these monthly fees are prorated over 9 months. See Item 6 and Item 11 for additional information.
- Initial Marketing Expenditures. The Franchise Agreement requires you to spend a minimum of $5,000 for pre-opening marketing in local advertising, promotion and publicity to generate sufficient awareness during the first three months of operation of your STCM Business. This is in additional to your Local Advertising Fee. We will maintain an Internet site for prospective customers and an Intranet site for you and other franchisees. See Item 6 and Item 11 for additional information.
- Business Licenses and Permits. You must obtain the required licenses and permits that are required by your city, county and state to operate a STCM Business. This estimate will vary by locale.
- Insurance. You must obtain and maintain, at your own expense, the insurance coverage we require, and satisfy other insurance-related obligations. Please note that if you have had prior issues or claims from previous operations unrelated to the operation of a STCM Business, your rates may be significantly higher than those estimated above.
- Travel and Initial Training Expenses. This estimate includes the expense you will incur in attending our initial training program, including travel expenses to Denver, Colorado for five days.
- Additional Funds. These amounts represent our estimate of the amount needed to cover your expenses for the initial three-month start-up phase of your STCM Business. They include payroll and other operating costs, but not any draw or salary for you. They also include three months of Local Advertising Fees. The low estimate assumes that your first three months of operation are during non-seasonal months and you would not owe a Local Advertising Fee. The high estimate assumes that your first three months of operation are during seasonal months and that you would have 12 weekly Local Advertising Fees payable during that time, with each of the three months having four Fridays. These figures do not include standard pre-opening expenses, Royalty Fees or other advertising fees payable under the Franchise Agreement or debt service and assume that none of your expenses are offset by any sales generated during the start-up phase. For purposes of this disclosure, we estimated the start-up phase to be three months from the date your STCM Business opens for business. We relied on our experience in the offer and sale of STCM Franchises since 2013 as well as our experience in the operation of five company-owned businesses similar to the franchises offered by this Franchise Disclosure Document.
- Fees. All fees paid to us or our affiliates are uniform and non-refundable under any circumstances once paid. Fees paid to third parties such as vendors or other suppliers may be refundable depending on the vendors and suppliers.
- Financing Initial Investment. If we refer you to a 3rd party lender for financing, we may agree to take a short-term promissory note until your financing is arranged. You must pay us a down payment of $15,000 – $20,000 when you sign the Franchise Agreement and pay the balance owed to us before the expiration of 90 days from the date on the promissory note. You must use the proceeds from any lender to pay any outstanding promissory note to us. If you pay the promissory note on time there will be no interest charged. If the promissory note is not paid on time we will charge you interest at the maximum rate allowed by law. You might also be required to pay us late fees. See Item 10 for additional information.
