What are the Startup Costs?
A Comprehensive Look at DreamMaker Franchise Costs
The DreamMaker franchise costs are based on several factors:
• The size of your exclusive territory. DreamMaker franchises have a minimum of 200,000 people in their territory, and franchisees can expand their territories for an additional fee to cover more population.
• Whether you are a new startup or an existing remodeler. A startup business will incur additional costs as they get their business up to speed. Established remodeling businesses can benefit significantly from joining DreamMaker and using its systems, and they may have already incurred many of the expenses that a startup would face.
• Discounts for veterans, existing remodelers, and large territories. DreamMaker offers discounts to veterans, existing remodelers who want to join the DreamMaker family, and to franchisees who want to purchase a larger territory.
How much money do I need?
The chart below, from Item 7 of our Franchise Disclosure Document, outlines the startup costs for a DreamMaker franchise. The estimated startup costs include $24,000 to $92,000 that we suggest franchisees reserve for working capital and personal expenses during their first six to 12 months in business. Not all franchise systems account for costs during the ramp-up phase when estimating startup costs, but they are important to consider so that you’ll be prepared ahead of time to effectively address reasonable cash flow needs in building your business once it is open.
Financing is available, so you won’t need to have all of this money up front. What you will need is a net worth of $100,000 to $250,000 and liquid cash available (savings and checking accounts, retirement accounts, stocks and bonds, etc.) of $50,000 to $80,000.
We understand that you will have questions, and we are happy to answer them — and to get to know you and give you a chance to get to know us!
Buying a franchise is a big decision, which is why we want to give you as much information as you need to make the best decision for you and your family.
ITEM 7 – Your Estimated Initial Investment
|TYPE OF EXPENDITURE||AMOUNT||METHOD OF PAYMENT||WHEN DUE||TO WHOM PAYMENT IS TO BE MADE|
|Totals||$95,875 to $258,745 plus any additional franchise fee|
|Initial Franchise Fee||$37,000 to $44,000 plus $185 per 1,000 additional population over the minimum||Bank Wire||When you sign the franchise agreement||Us|
|Software License Fee||$3,195||Bank Wire||When you sign the franchise agreement||Us|
|Vehicle||$0 to $7,200||As arranged||As incurred||Independent Vendors|
|Equipment, Supplies & Inventory||$14,500 to $30,700||As arranged||As incurred||Independent Vendors and Us|
|Insurance||$0 to $4,000||As arranged||As incurred||Independent Carriers|
|Initial Advertising & Promotional Deposit||$12,000 to $36,000||Bank Wire||When you sign the franchise agreement||Us|
|Training, Travel, Lodging & Food||$3,000 to $6,000||As arranged||As incurred||Independent Vendors|
|Deposits, Permits & Licenses||$0 to $1,000||As arranged||As incurred||Independent Vendors|
|Real Estate||$2,200 to $28,650||As arranged||As incurred||Third party suppliers|
|Professional Fees||$0 to $5,000||As arranged||As incurred||Third party suppliers|
|Additional Funds -||$24,000 to $92,000||Cash||As incurred||Various Payees|