| Expense | Estimated Amount | Details |
|---|---|---|
| Initial Franchise Fee | $8,000 | Paid from your existing personal working capital or included in your loan to purchase a Mac Tools franchise, if your lender allows you to finance the initial franchise fee. |
| Annual Fee | $1,200 | Billed annually through your Mac Tools purchasing account. |
| Starter Inventory | $71,000 to $76,000 | Eligible franchisees may finance 100% of the cost for Starter Inventory. The amount and type of inventory required is selected by Mac Tools and varies from time to time. |
| Truck Lease or Purchase | $13,800 to $220,000 | Varies based on whether the truck is leased or purchased and the age and condition of the truck. Fees for delivery, registration, painting, and purchase and installation of decals and tool displays may apply. Security deposits may be required for leased truck. This estimate includes costs to lease a truck and to purchase a truck. Lease estimate is for a 6-month period. |
| Computer System | $4,000 - $5,000 | Computer system and software is a package by Mac Tools to meet all the requirements of your business. You must purchase this package from Mac Tools. |
| Business Software Fee (for 6 month period) | $550 Includes $250 set up fee and $50 per month fee |
Initial fee payable in lump sum when Franchise Agreement is signed or when additional Route or software user is added. Recurring fee due monthly, beginning in the first full month of operation. |
| Travel and Living Expenses while Training | $2,025 to $4,050 per person | Includes flight, meals and hotel. Does not include other personal expenses. |
| Insurance (for 6 month period) | $1,700 to $4,800 | Costs vary by locality and your personal loss experience. Three month down payment is standard. Estimate is for a 6-month period. |
| Opening Advertising and Business Cards | $50 to $250 | No pre-opening advertising is required, but franchisees typically purchase business cards before opening. |
| Professional Fees and Fees for Licenses, Permits and Authorizations | $1,000 to $2,150 | Varies depending on franchisee location. Includes truck licenses, sales tax permits, vendor licenses and other similar permits and licenses. Includes estimated cost of consultation and review of franchise documents by attorney, accountant and/or other trusted professional. |
| Payment Processing Services | $0 to $500 | Set-up fees, monthly service fees and processing fees may apply for customer payments made using a smart device (e.g., phone or tablet). Estimate is for a 6 month period. |
| Work Uniforms | $0 to $75 | During your Mac Tools University training, we will provide you with a minimum of 3 shirts. There will be availability to order more if you wish. |
| Truck Painting and Decal Application* | $0 - $5,000* | Includes shipment and installation of decal package. |
| Tool Displays* | $0 – $2,000* | You may buy optional tool displays from us or other suppliers to improve/enhance product visibility. |
| Required Monthly Software Fee (for 6 month period)** (Mac Tools is not currently charging this fee but may in the future.) |
Up to $150 per month Estimated fee of $0 to $900** |
Covers other technology that Mac Tools may need to develop/implement in the future to support your franchise. Billed monthly, beginning in the first full month of operation. (Mac Tools is not currently charging this fee but may in the future.) |
| Additional Technology Fee (initial fee and monthly recurring fee for 6 month period)** (Mac Tools is not currently charging this fee but may in the future.) |
Up to $500 initial fee Up to $150 monthly fee Estimated fee of $0 - $1,400** |
You may be charged this fee for each Technology used in your Mac Tools Business. This fee is in addition to the Business Software Fees. You may be required to pay this fee on a per franchisee, per Route or per license or user permission basis. |
| Additional Funds: 3 to 6 months (Including Time Payment Growth Line of Credit/Working Capital) | $20,000 to $50,000 | Additional funds may be needed to establish your business. Funds may come from your existing working capital or, if lender approved, from a line of credit (referred to as the Time Payment Growth Line of Credit). The typical Time Payment Growth Line of Credit is $30,000. |
| Total Estimated Initial Investment | $123,325 to $347,425 | Estimate does not reflect any discounts or incentives that may be offered by Mac Tools. |
* Not applicable if the truck purchased or leased already meets Mac Tools’ standards and specifications.
** Mac Tools does not currently charge this fee.
Item 7 of Mac Tools’ franchise disclosure document includes additional information on the Expenses and Estimates described above.