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The Entrepreneur's Source Area Developer

Area Developer Investment

To become a TES Area Developer you typically need $135,000 in liquid assets and a minimum networth of $250,000. Your initial investment will typically be $149,000, depending on several variable factors.

Type of expenditure Amount Method of payment When due To whom payment is to be made
Area Developer FeeFDD Info
NOTE 1: Area Developer Fee
The Area Development Fee includes all initial franchise fees for units allotted under the Area Development Agreement; no additional franchise fees will be due upon opening of subsequent units. The fees listed above, minus the Area Development Fee of $125,000, $200,000 or $250,000; pertain to each unit upon opening in accordance with Attachment 1 of the Area Development Agreement.
5 unit: $125,000
10 unit: $200,000
15 unit: $250,000
Lump Sum At the time you sign your Franchise Agreement Us
TuitionFDD Info
NOTE 2: Tuition
Anyone working in the Franchised Business needs to participate and successfully complete our CPE curriculum, described in Item 11. Under an Area Development Agreement, at least five or ten individuals (depending on your ADA and number of units) must participate and successfully compLete our CPE curriculum. The Tuition is per person.
$10,000 Per Person Lump Sum At the time you sign your Franchise Agreement Us
Staffing CostsFDD Info
NOTE 3: Staffing Costs
For multiple unit Area Developers, there must be one person who devotes his or her full time to the business. You may have costs associated with this staff, if you are granted the right to develop multiple franchises. We cannot predict employment costs in varied market environments, and, therefore, cannot project the amount of expenditures needed to hire required assistants for any number of outlets.
       
Real Estate And Improvements
(6 Months)FDD Info
NOTE 4: Real Estate and Improvements
Although you are permitted to work from home and not required to obtain office space outside of your home, you may wish to utilize a furnished office space or lease a small furnished office with conference room access to include a desk, chairs etc. for the purpose of meeting with clients. Rent for furnished office space is estimated at between $8,000 and $10,000 per year plus deposit. The amount shown as possible rent expense for six months and is dependent upon your location.
$4,000 to $5,000 As Incurred As Incurred Vendors
Travel And Living ExpensesFDD Info
NOTE 5: Travel And Living Expenses
This amount reflects seven days of lodging, airfare, meals, vehicle rental and incidentals while attending CPE programs at the PEC in Connecticut. You must pay your own entire out of pocket expenses while attending the PEC.
$1,500 to $2,500 Per Person As Incurred As Incurred Airlines, Hotels, Restaurants
EquipmentFDD Info
NOTE 6: Equipment
Includes an all-in-one copier, printer, scanner and fax machine appropriate for a small home office and a laptop computer. You may already have some or all of this equipment that meets our requirements, which would eliminate these initial costs.
$150 to $3,000 As Incurred Before Opening Vendors
Marketing AidsFDD Info
NOTE 7: Marketing Aids
Includes purchase of such items as business cards, letterhead, fliers, prospect and client brochures.

$1,000 to $2,000

As Incurred Before Opening Vendors
Vehicle Lease Or Usage
(6 Months)FDD Info
NOTE 8: Vehicle Lease Or Usage
You are not required to obtain a vehicle specifically for use as a franchisee. If you choose to lease a vehicle for the purposes of conducting your Franchised Business, this is an estimate for six months vehicle lease or usage.
$1,200 to $2,400 As Incurred As Incurred Vendors
Call CenterFDD Info
NOTE 9: Call Center
You are required to meet certain operational benchmarks throughout the term of your Franchise Agreement. If during any 120 day period you fail to meet your operational benchmarks, we may require you to participate in a designated call center program (the "Call Center") and incur a fee in order to establish your required business development activity. The amount above represents two months of call center fees in the event you are required to use call center services after your first four months of operations. This fee is imposed by an outside vendor and is only incurred if you do not meet the established operational benchmarks in the manual.
$2,000 As Incurred As Incurred Vendors
Technology Fee
(6 Months)FDD Info
NOTE 10: Technology Fee
This amount reflects six months of payments toward the Technology Fee for one person.
$510 As Incurred Monthly Us
Additional Funds
(6 Months)FDD Info
NOTE 11: Additional Funds
This estimates your first six months start up expenses and includes six months of insurance, office supplies, travel and entertainment (such as open houses for the business), possible payroll, state licensing and other possible overhead costs. The range is dependent upon the size and type of unit operated. The expenses are estimates only; we cannot guarantee that you will not have additional expenses starting the business. The costs will depend upon such factors as: how much you follow our methods and procedures; your management skills, experience and business acumen; the prevailing wage rate; local economic conditions; the market for our products and services; competition; and the sales levels reached during the initial six-month period.
$8,000 to $9,800 As Incurred As Incurred Suppliers, Deposits, Professionals, Utilities, Development Assistant
Total 5 unit
10 unit
15 unit
FDD Info
NOTE 12: Total
We have relied upon our management's combined experience in the franchise business to compile these estimates. You should carefully review these figures with a business advisor before making any decision. We do not finance any portion of the Initial Franchise Fee. Unless otherwise noted, these fees are non-refundable.
$153,360 to $162,210
$228,360 to $237,210
$278,360 to $287,210

Disclaimer
This information is not intended as an offer to sell or the solicitation of an offer to buy a franchise. It is for information purposes only. Currently, the following states regulate the offer and sale of franchises: California, Florida, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Utah, Virginia, Washington and Wisconsin. If you are a resident of or want to locate a franchise in one of these states, we will not offer you a franchise unless and until we have complied with applicable pre-sale registration and disclosure requirements in your state.

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