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PSP Investment Requirements
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The table below shows the
financial investment
required to become either a
Pet Supplies "Plus"
franchises or an Area
Developer. The confidential
personal financial statement
included in this package
must be completed and
returned to us if you are
interested in becoming a
franchises.
|
Item |
Amount |
Initial Investment
Method of Payment |
When Due |
To Whom Payment Is To Be
Made |
|
Low |
High |
|
Initial Franchise Fee |
$25,000 |
$25,000 |
Lump Sum |
At Signing |
PSP |
|
Inventory |
155,000 |
200,000 |
As Incurred |
Prior to Opening |
Suppliers |
|
Equipment |
103,500 |
170,000 |
As Incurred |
Prior to Opening |
Suppliers |
|
Signs |
10,300 |
34,000 |
As Incurred |
As Incurred
|
Suppliers |
|
Training |
2,000 |
4,000 |
As Incurred |
As Incurred |
Employees, Purveyors of
meals and lodging1 |
|
Advertising Grand
Opening |
5,000 |
5,000 |
As Incurred |
As Incurred |
Suppliers |
|
Insurance |
3,000 |
6,000 |
As Incurred |
Prior to Opening |
Suppliers |
|
Leasehold Improvements |
0 |
60,000 |
Lump Sum |
As Incurred |
Landlord or Builder2 |
|
Prepaid Rent/Security
Deposit |
11,000 |
18,000 |
Lump Sum |
Upon
Execution of Lease
|
Landlord3 |
|
Legal & Accounting |
2,000 |
4,000 |
As Incurred |
As Incurred |
Suppliers |
|
Pre-Opening Labor |
6,500 |
13,000 |
As Incurred |
As Incurred |
Employees |
|
Additional Funds4 |
100,000 |
125,000 |
As Incurred |
As Incurred |
Various |
|
TOTAL |
423,300 |
664,000 |
*Insert See Below |
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* The only initial investment
under the Area Development
Agreement is the Area
Development Fee. If
you enter into an Area
Development Agreement with us
you will not be required to pay
an Initial Franchise Fee in
connection with the first 5
franchises you develop in your
Exclusive Area. |
1PSP does not charge for
training. The costs set forth in
the chart above represent an
estimate of the expenses that
you will incur for the salary,
travel expenses, food and
lodging for 1 person.
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2The costs listed above
represent an estimate of the
costs incurred by you to get an
existing leased facility to
comply with PSP's standards for
PSP stores. The cost will vary
depending on the size and
condition of your Store. Your
negotiations with your Landlord
will determine whether you or
your Landlord bears these
expenses. In some cases you may
recoup all or part of the cost
of any leasehold improvements
that you pay for in the form of
credits against your rent or
below market rents once the term
of the lease commences.
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3The chart in Item 7 above
assumes that you will lease the
location for your Store. Your
Store is typically a retail
store in sound condition, of
approximately 7,000 to 9,000
square feet located in a
high-visibility building.
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4PSP determined the amount
of required Additional Funds by
computing the amount which, when
added to the cash flow of a
typical store, would be
sufficient to sustain the
typical store for 1 year.
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