Prices in Canadian Dollars.
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Development Costs
The following figures are a guideline only based on Grower Direct’s experience and estimates. They should not be used as actual values for budgetary purposes. Development costs of individual stores will vary greatly based on size, geographical location, lease requirements, leasehold allowances, and the amount of work that is performed by store owners. Please note: The following estimates do not include tenant improvement allowance that may be negotiated with the landlord.
Description | High | Low | Payable To | When Due |
Initial Franchise Fee | $15,000 | $15,000 | The Franchisor | Upon Invoicing |
Leasehold Improvements, Equipment and Fixtures | $30,000 | $20,000 | Third Party Suppliers | Upon Invoicing |
Inventory and Supplies – Flowers | $4,000 | $2,500 | The Franchisor | 14 Days from Invoice |
Professional Fees(e.g. Incorporation and Lease Review) | $2,000 | $700 | Third Party Suppliers | Upon Invoicing |
Advertising and Promotion | $5,000 | $500 | Third Party Suppliers | Upon Invoicing |
Initial Rent | $2,500 | $500 | Landlord | Upon Signing Lease |
| Travel and Accommodaton, Living Expenses and Wages for Two People During Training | $1,500 | $0 | Third Party Suppliers | Upon Invoicing |
Insurance & Deposits | $3,000 | $500 | Third Party Suppliers | Upon Invoicing |
License Fees | $700 | $100 | Third Party Suppliers | Upon Invoicing |
Total | $63,700.00 | $41,350.00 | ||
GST – 5% | $3,185.00 | $2,067.50 | To Franchisor or Supplier | Upon Invoicing |
Subtotal Taxes Included | $66,885.00 | $43,417.50 | ||
Security Deposit – Lease Premises | $5,000 | $0 | Third Party Suppliers | Upon Invoicing |
Letter Of Credit | $12,500.00 | $12,500.00 | To Franchisor | On Franchise Agreement |
Working Capital | $10,000.00 | $5,000.00 | Third Party Suppliers | Upon Invoicing |
Grand Total | $94,385.00 | $60,917.50 |
1) Notes: The above figures assume outlets of between 400 – 1500 square feet. Rents will very from location to location and are subject to market fluctuation. In some cases the landlord will provide inducements or allowances for leasehold improvements which may reduce the initial capital outlay for leasehold improvements.