Knockouts Estimated Initial Investment & Start-Up Costs
Per Location
Note: This is an estimate only of the capital needed to open and operate your salon during the initial 12 months after you open your business. Knockouts cannot guarantee that you will not have additional expenses starting the business. In our FDD build-out expenses reflect ALL services being subcontracted – $94,100 to $190,550.
TYPE OF EXPENDITURE
AMOUNT
METHOD OF PAYMENT
WHEN DUE
TO WHOM
PAYMENT IS
TO BE MADE
PAYMENT IS
TO BE MADE
(1) Initial Franchise Fee
$22,500
Lump Sum
Upon signing Franchise Agreement
Us
(2) Initial Creative Fund Fee
$2,500
Lump Sum
Upon signing Franchise Agreement
Us
(3) Leasehold improvements
$20,000 to $57,000
As invoiced
As arranged
Independent contractors
(4) Lease payments and other rental expenses –
first three months
$2,500 to $11,250
Per lease
Monthly
Landlord
(5) Equipment
$15,000 to $25,000
Lump Sum
Prior to
opening Salon
opening Salon
Suppliers, us or designated vendors
(6) Freight Charges
$1,500 to $2,500
Lump Sum
As Incurred
Freight Carriers
or Suppliers
or Suppliers
(7) Signage
$3,200 to $6,500
As invoiced
Prior to
opening Salon
opening Salon
Suppliers, us or designated vendors
(8) Initial Inventory
$1,000 to $2,000
Lump sum
Prior to
opening Salon
opening Salon
Suppliers, us or designated vendors
(9) Architectural/
Engineering
Engineering
$2,000 to $3,000
As invoiced
Prior to
opening Salon
opening Salon
Suppliers, us or designated vendors
(10) Travel, lodging and meals for initial training
$1,000 to $1,500
As incurred
As incurred
Airlines, hotels and restaurants
(11) Business Supplies (stationery, business cards, brochures, paper and other materials)
$1,000 to $2,000
Lump sum
Prior to
opening Salon
opening Salon
Us or independent suppliers
(12) Business licenses, permits, etc. (for first year)
$1,250 to $2,000
As incurred
As arranged
Various
agencies
agencies
Telephone and utility deposits and expenses
$1,000 to $1,500
Lump sum
As arranged
Suppliers
(13) Insurance deposits
and premiums (for first year)
and premiums (for first year)
$1,000 to $1,800
As invoiced
As arranged
Independent carriers
(14) Grand opening advertising
$6,000 to $9,500
As incurred
As arranged
Suppliers
Additional funds – 3 months
$12,650 to $40,000
As incurred
As arranged
Various
vendors
vendors
(15) TOTAL
$94,100 to $190,550