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Home/About/Franchise/Development Costs Print This Page

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.

 

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Edmonton, Alberta
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T6E 4N4
Tel: (780) 436-7774
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