Estimated Initial Investment

 

Notes Regarding Initial Investment:

(1)  Expenditures.  The estimated high and low ranges in the tables above are based on the past experience of ValuePest.com Franchised Businesses. All fees imposed by us are non-refundable. Fees and expenses paid to vendors or other third parties should also be considered non-refundable.

(2) Initial Franchise Fee. In order to acquire a ValuePest.com franchise, you must pay ValuePest.com the Initial Fee. The Initial Fee is due when you sign the Franchise Agreement and is non-refundable. It can be paid in a single lump sum payment or ValuePest.com may agree to finance up to fifty percent of the Initial Fee with a down payment of $4,995.00 and 24 consecutive monthly payments at 8 percent interest. (See Item 10 for full details about ValuePest.com’s in-house financing program.)

(3) State Termite & Pest Control License:  Each state requires Structural Pest Control Businesses to be licensed. The low end of the range assumes you already possess the required state licenses or qualified for the state licenses required to operate the Franchised Business. The high end of the range assumes that you do not qualify for a state license and you hire a qualified licensee and pay him $5,000.00 during the first six to twelve months.

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

(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. 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. Your initial investment includes the costs related to the purchase of specified computer hardware and software. You must also purchase a iPad with wireless internet connection to process service invoices from the field.

(7) Office and Storage. 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)  Vehicle and Equipment.  We do not require that you purchase a vehicle if you already own a suitable white, light duty pick-up truck in good condition. The low end of the range assumes that you already own a suitable pick-up truck and your application equipment. If you do not already own a suitable vehicle, you must either lease or purchase one. The high end of the range assumes that you will lease a suitable vehicle and purchase all of the required application equipment and material inventory. A light duty pick-up truck can be leased, depending on your credit and the auto dealer, with an approximate $250-$500 deposit and monthly payments negotiated with the auto dealer.

(9) Initial Marketing Expense.  You will launch a marketing and advertising campaign for your Franchised Business in the geographical boundaries of the Territory when you begin operations of your Franchised Business and, potentially, before the operating season in your Territory.

(10) 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 Royalties, Call Center Support Fees, payroll costs, deposits, fees for city, state, and local business licenses, 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.

(11) 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 10 years of management experience in working with ValuePest.com 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.