Express Oil Change & Tire Engineers Franchising

Startup Costs

Start Up Cost Summary
Land (1) $ 650,000 - $ 850,000
Building & Site (1) $ 800,000 - $ 1,000,000
Equipment, Signs, Furnishings (1) $ 200,000 - $ 300,000
Organization, Professional Fees $ 35,000 - $ 55,000
Loan Origination $ 35,000 - $ 55,000
Sub-Total $ 1,720,000 - $ 2,260,000
Soft Costs
Franchise Fee* (2) $ 35,000
Pre-Opening (3) $ 33,500
Opening Inventory (Inventory includes 100 tires @ a laid in cost of $100 per tire.) $ 37,500
Opening Advertising (4) $ 10,000
Working Capital (5) $ 70,000
Sub-Total $ 186,000
Total $ 1,906,000 - $ 2,446,000

(1) The amounts set forth above for land, building and site work, and equipment include the cost of purchasing a 25,000 to 35,000 square foot site in a commercial or retail area and constructing a 6 to 9 bay facility on property which has all utilities to the site and does not require any excessive site preparation. The actual costs will vary materially depending on location, size and condition of lot, size of building and other factors. Many existing buildings (former service stations, automotive service centers, etc.) have been successfully converted at lower costs. To view a range of these costs see Item 7 of this FDD.

(2) The initial franchise fee is $35,000 for your first unit and $17,500 for any additional unit. Initial Franchise Fee is payable in a lump sum due at signing and is uniform to all franchisees currently purchasing a franchise.

(3) Amounts set forth above for pre-opening include (a) the manager's and assistant manager's salaries during pre-opening; (b) payroll costs of the crew for pre-opening training; and (c) costs of transportation, lodging and meals during the training at the franchisor's headquarters. Also includes amounts for change fund, utility deposits, uniforms and other discretionary purchases.

(4) Amount set forth covers the requirement under the franchise agreement for grand opening promotions.

(5) Amounts set forth above are for working capital and normal early operating losses.

(6) Standard new store inventory startup to include 100 tires at a laid in cost of $100 per tire.

*There are no other direct or indirect payments in connection with the purchase of the franchise.