Estimated Initial Investment

Explanation Regarding Initial Investment

The estimated high and low ranges in the tables above are based on the past experience of ValuePest Franchised Businesses. The fees and expenses above are paid to vendors.

(1)  Establish Corporation or LLC.  ValuePest requires all Franchisees to be protected by operating as either a corporation or a limited liability company. You can do this yourself on Legalzoom.com or other online sites, however, we recommend that you hire a local attorney and pay a little more to do this right so you are fully protected.

(2)  Service Vehicle.   You are required to purchase a 2018 or newer white, Nissan Frontier pick-up truck in good condition. The low end of the range assumes that you finance the Nissan Frontier pick-up truck loan/lease with no money down. The high end of the range assumes that you pay cash for the truck.

(3)  Application Equipment. You will need to purchase a 50-gallon electric power spray rig, drills, hand held sprayers, power blower and other application equipment before you open your business. The low of the range assumes that you already have this equipment and high end of the range assumes that you will need to purchase everything new from a supplier.

(4)  Insurance.  You are required to purchase and maintain at all times, general liability insurance, workman’s compensation insurance with ValuePest named as an additional insured. You may purchase this insurance from any approved vendor.

(5)  Travel and Living Expenses During Training.  We provide training at our corporate office and National Training Center located in Monroe, North Carolina or at another location we designate. ValuePest does not charge you for this training. However, you must pay for airfare, meals, transportation costs, salaries, benefits, lodging and incidental expenses for all initial training program attendees.

(6)  Computer Hardware and Software. If you do not already have these items, you must purchase of computer to access our software. You must also purchase an iPhone and an iPad for each field service technician with wireless internet connection to process service invoices from the field.

(7) Storage Area. The low end of the range assumes that you will be starting your Franchised Business from home. If you do not own adequate office and storage space either in your home or at an external storage facility, you must lease space to store your inventory and supplies for your Franchised Business. Local laws may require that your storage facility be located in a commercial (non-residential) area. You are responsible for determining if there are any requirements regarding the location of your office facility. If you lease space, you will generally be required to pay first and last month’s rent, plus a security deposit, at the time you sign the lease. In most cases, the terms and conditions of all agreements relating to the purchase, lease, and alteration of the property will be negotiated solely by you; however, we may require you to incorporate certain provisions into your lease.

(8) Additional Funds – 3 Months.  This is for budgeting purposes only to account for unanticipated expenses. This amount includes estimated operating expenses you should expect to incur during the first 3 months of operations, not including any revenue generated by your Franchised Business. It includes, payroll costs, deposits, fees for city, state, and, insurance, business entity organization expenses, other prepaid expenses, accounting and professional fees, and other operational expenses. These figures do not include any taxes that you may pay. You should check your local and state governmental agencies for any taxes that may be assessed. These figures do not include any salary or compensation that you may choose to draw from the business.

(9) Total Estimated Initial Investment. These figures are estimates only. You should review these figures carefully with a business advisor before making any decision to purchase the Franchised Business. You may incur additional expenses starting your Franchised Business. Your costs depend on several factors, including how well you follow our methods and procedures; your management skills, experience and business acumen; local economic conditions; the local market for our services; the prevailing wage rate; competition; the time of year that you launch operations; and sales levels reached by your Franchised Business during the initial period.

We have relied on over 20 years of management experience in working with ValuePest Franchised Businesses to compile these estimates. This is only an estimate of your initial investment and is based on our estimate of nationwide costs and market conditions prevailing as of the date of this disclosure document. You must bear any deviation or escalation in costs from the estimates in costs from the estimates that we have given. You should review these figures carefully with a business advisor before making any decision to purchase a Franchised Business.  Many factors that are unique to your location can make a dramatic difference in the estimates provided. The availability and terms of financing depend on several factors, including the availability of financing generally, your creditworthiness, collateral you may have and lending policies of financial institutions.