A.  Overview
Initial Franchise Fee: $25,000
Annual Royalties: 6% of Gross Sales
Annual Advertising Fee: 2% of Gross Sales
Initial Term of Franchise: 10 years

Total Estimated Initial Investment: $169,250 - $316,000 (see breakdown below)

B.  Breakdown Of Estimated Initial Investment
These are estimates; actual costs may vary depending upon location, regional economic factors and market conditions, and the like.

$25,000                       Franchise Fee 
In accordance with the franchise agreement, you will receive one week of training at a location designated by the Lighthouse home office, as well as use of the Lighthouse name, logo and systems in conjunction with the operation of your franchise.

$2,000 - $7,000           Rent & Security Deposit
Many Landlord’s require the first month’s rent, plus a security deposit of one to three month’s rent, payable at the time of lease signing. It is suggested that the store consist of at least 500 square feet of space.  The rent and security deposit will vary based upon the size of the store, the location, and local market conditions. 

$250 - $2,000              Travel/Living Expenses for Initial Training
This expense pertains to the cost to travel to the initial training session (which will most likely occur at a designated location in New Jersey). This expense can vary greatly depending on the cost of airfare or other travel to the training location, the hotel you select, and the meals and other expenses you incur. 

$50,000 - $85,000       Leasehold Improvements & Fit-Up
Materials and labor to fit-up the store may include, but not be limited to, installation/modification of fixtures and building systems, carpentry, plumbing, electrical work, painting, tile work and the like. Permits and licenses generally must also be obtained. All of these costs will vary widely depending upon the size of the store, its general condition, the location, etc.

$75,000 - $150,000     Equipment, Furnishings, & Signs
This estimate includes the cost of all equipment, furnishings, and signage for your store. This cost will vary due to price differences from various suppliers, etc. It will also vary depending upon the number of dispensing machines you install in your store. You may only install dispensing machines that are approved by the Lighthouse home office (and you may be limited to purchasing and/or leasing the dispensing machines from the Lighthouse organization). Also, all signage must be approved by the Lighthouse home office, and approvals for signage may also be required from your Landlord, local building department and zoning officials, and the like.

$3,500 - $7,000           Opening Inventory & Supplies
The cost for start-up inventory and supplies - - for items such as products and mixes, containers, packaging materials and other paper goods, utensils, and other supplies and materials - - may vary based upon store location and local costs, and the desired level of start-up material.

$2,000 - $7,500           Insurance & Utility Deposits
This is an estimate of prepaid items such as insurance and utility deposits; this will vary depending upon the size and the location of the store, etc.

$1,500 - $2,500           Grand Opening Advertising
All advertising and promotional materials must be approved by the Lighthouse home office.

$10,000 - $30,000       Working Capital & Additional Funds
This is a general estimate of the working capital and additional funds - - for items such as rent, employee compensation, supplies, inventory, utility charges, etc. - - that you will need for the first 3 months of operation. Actual expenses will vary based upon many factors, such as location and local economic conditions, seasonal and weather conditions, specific store performance and management skill, and so on.

$169,250 - $316,000     Total
Again, this total is an estimate of the initial development cost for a store. Actual costs may vary based upon a wide range of factors such as store size and location, store condition and fit-up costs, regional economic conditions, etc.

NOTE: THIS WEBSITE DOES NOT CONSTITUTE AN OFFER FOR THE SALE OF A FRANCHISE. AN OFFER CAN ONLY BE MADE BY THE DELIVERY OF A FRANCHISE OFFERING CIRCULAR TO YOU IN ACCORDANCE WITH ALL APPLICABLE FEDERAL AND STATE LAWS.

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