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The Silution Franchise Opportunity
Total Investment
FAQ
Franchise Info Request
Franchise Application






Total Investment

Expense

Amount

Method of
Payment

When Due

To Whom
Payment Is To
Be Made

Initial Franchise Fee1

$22,000

Lump Sum

On signing the Franchise Agreement

Us

Vehicle2

$500 to $16,500

Monthly

Before opening

Suppliers

Opening Inventory3

$1,000

Lump sum

Before opening

Suppliers

Insurance4

$750 to $1,500

Annual

Before opening

Insurer

Printing and
Signage5

$500 to $1,000

Lump sum

Before opening

Suppliers

Office Equipment 6

$0 to $1,500

Lump Sum

Before opening

Us/Suppliers

Smart Phone7

$0 - $500

As Incurred

Before Opening

Suppliers

Rent/Security Dep8

$0 to $3,000

Lump sum

As required

Landlord

Initial Advertising9

$7,000

As Incurred

As required

Suppliers

Leasehold Improvements10

$0 to
$1,000

As Incurred

Before beginning business

Various contractors/
Suppliers

Utilities Deposits11

$0 to $300

As Incurred

As required

Suppliers

Licenses and
Permits12

$200 to $500

Lump sum

As required

Governmental Agencies

Organizational Costs13

$1,000 to
$3,000

Lump Sum

Before beginning business

Legal and accounting advisers and agents.

Travel, Lodging,
Meals, Etc. for
Initial Training14

$1,000 to $2,000

As Incurred

As required

Suppliers

Additional Funds15
(3 months)

$5,000 to $10,000

As Incurred

During the first 3 months of operation

Third Parties

Miscellaneous Start-Up Costs16

$1,000

As Incurred

During the first 3 months of operation

Third Parties

TOTAL

$39,950 to $69,800

 
 
  1. Initial Franchise Fee - See ITEM 5 Initial Franchise Fee for a description of the Initial Franchise Fee and the circumstance under which it may be partially refundable.

2. Vehicle Our approved Silution Mobile Service Center is the Scion xB in Black Sand Pearl with all Silution decals. However, other vehicles might also be approved to operate your Silution Franchise as long as they meet our requirements of color, age and body style and display all Silution decals. You can only use an approved vehicle to operate your Silution franchise which must display our decals at all times. Your costs will vary depending on the use of an existing vehicle, purchase or lease of a new or used one. You might incur additional repair costs to meet our requirements if you choose to use an existing vehicle.

3. Inventory The inventory does not fluctuate as a function of seasonal sales. The typical for-sale items held in opening inventory are computer hardware and software components and accessories in the amount of $1,000.

4. Insurance - As discussed in ITEM 8 and Section 9.1 of the Franchise Agreement, you must carry certain specified insurance as required pursuant to the Manual. The method and timing of payments is a matter to be resolved between you and your insurer. Because the selection of the carrier, size of the Premises, location of the Premises, value of the leasehold improvements, amount of inventory, amount of wages and other related conditions will vary, it is difficult to estimate the ultimate cost to you. Therefore, we can only estimate the total cost with the caution that you should obtain quotes from carriers of choice before proceeding.

5. Graphics - We will specify the signs and graphics for your vehicle and office location, and only those we approve will be used. Signs and graphics will be maintained in a condition acceptable to us at all times. You, at your own expense, must prepare, construct and erect the signs and graphics in accordance with approval from governmental authority and the landlord. The costs of fabricating and installing approved signs and graphics can vary depending upon local market conditions.

6. Office Equipment - Most prospective franchisees have all necessary communication equipment to operate the Silution Franchise from their home office. If setting up a separate office location, your office equipment will need to consist of a PC computer, monitor, printer/copier/scanner/fax, cell phone and credit card machine. You may expect initial cash outlays to be lower if the items can be leased rather than purchased.

7. Smart Phone - You must purchase, if you already don't have one, an Approved Smart Phone. Our current recommended and approved Smart Phone is the Verizon Treo 700w with accompanying national voice and data plan from Verizon. However, at our discretion we may also approve other Smart Phones such as the Treo 650 or Samsung SCH-i730. You may be required to purchase additional 3rd party software to adopt these phones to our back office server. BlackBerry devices are currently not approved.

8. Rent - You may choose not to rent an office for your Silution Franchise. In this case your rent will be $0 a month. However, if you do, we expect that you will enter into a commercial lease. Lease costs will vary based upon variances in: (i) size in square feet to be leased; (ii) cost per square foot; and (iii) common area maintenance costs. These variances are determined by location, the length of the lease, the age of the leased property, local market conditions, the size of the Premises and the bargaining power of the developer or property management company. We assume that the landlord will require first and last months' rent and a security deposit equal to one months' rent.

9. Grand Opening - We feel strongly that you should enter the market in an aggressive way to minimize early lack of awareness of the Silution Franchise among large numbers of potential customer in the Exclusive Territory. Grand opening promotional activities vary greatly based upon the nature of the events you elect and the local rates for services selected, for example, printing and advertising. We believe that $5,000 is sufficient to create awareness using a multi-media advertising program.

10. Leasehold Improvements - If you choose not to secure a physical office location for your Silution Franchise, you will have $0 leasehold improvements costs. On the other hand, the cost of leasehold improvements for your Silution Franchise will vary as a function of size, condition and location of the Premises, price differences among contractors, local wage rates and material costs, other local conditions and the nature of your leasehold improvements. The previous tenant or landlord may have installed leasehold improvements that are very compatible, thereby reducing costs. We estimate that leasehold improvements vary from $0 to $1,000. All leasehold improvements are directly related to conforming the Premises to our current standards for layout, traffic flow and other specifications.

11. Utilities - You might incur certain deposits with local utilities, for example, electric, telephone, gas, water, etc. These will vary depending on the policies of the local utilities but are estimated to be from $0 to $300.

12. Licenses - Local, municipal, county and state regulations vary on what licenses and permits are required to operate a Silution Franchise. The cost of licenses vary as set by local authorities. The total cost is approximately $200 to $500. These fees are paid to governmental authorities, when incurred, before beginning business and are usually not refundable.

13. Legal - Regardless of the ownership of the Silution Franchise, you must comply with the fictitious, assumed, or trade name statutes of the state in which the Silution Franchise will be located. You are advised to have these documents reviewed by legal counsel and a financial adviser. These costs may be paid to attorneys, accountants newspapers and governmental agencies, are not refundable and usually incurred before beginning business.

14. TL & M - You must arrange for transportation and paying the expenses for meals and lodging for any persons attending the training program. The amount spent will depend on the distance you must travel and the type of accommodations you choose. The estimate contemplates attendance by 1 to 2 persons traveling to our headquarters in Pasadena California or other location as we will designate for approximately 5 days.

15. Working Capital - You must have adequate working capital before beginning operation of a Silution Franchise. Working capital should be sufficient to keep the Silution Franchise in operation for 3 months and capable of covering the excess of expenses over cash flow from the Franchise covering independent contractor fees, employee salaries and taxes, inventory replenishment, insurance premiums, rent, utilities and other normal expenses that are associated with the day-to-day business operation of the Franchise. You must be able to meet operating expenses from pre-opening, including hiring and training expenses, until the Silution Franchise develops sufficient cash flow to cover all costs. The estimate does not include any payments to you during the start-up period. You must have sufficient personal resources to cover your living expenses during this period. We do not guarantee that you will not have greater start-up expenses than these estimates, or that you will not need more operating funds than these estimates. We do not imply or guarantee that you will "break even" by any particular time.

16. Miscellaneous - Although the estimated start-up expenses are our best estimate, it is possible that you will exceed these figures and it would be advisable to have additional working capital available. You must have an additional $1,000 in reserve cash.



Basis for Estimates

We relied on our management staff's seven years of experience as owner and operator of a computer service and support business in Southern California, to compile these estimates. You must review these figures carefully with a business advisor before making any decisions to purchase a Silution Franchise.



SILUTION FRANCHISES ARE AVAILABLE TO QUALIFIED PROSPECTIVE FRANCHISEES ONLY IN CERTAIN STATES. SILUTION FRANCHISE CORP. WILL NOT OFFER OR SELL A FRANCHISE UNLESS REGISTERED (OR EXEMPT) IN THE STATE WHERE THE PROSPECTIVE BUYER RESIDES OR WHERE THE FRANCHISE WILL BE LOCATED. THIS OFFER IS NOT BEING DIRECTED TO ANY RESIDENT OF ANY STATE, PROVINCE, COUNTRY OR JURISDICTION WHERE SILUTION FRANCHISE CORP IS NOT CURRENTLY REGISTERED TO OFFER OR SELL A FRANCHISE, UNLESS OTHERWISE QUALIFIED OR EXEMPT. THE INFORMATION ON THIS WEB SITE IS NOT AN OFFER TO SELL, OR A SOLICITATION OF AN OFFER TO BUY A SILUTION FRANCHISE. AN OFFER TO BUY A SILUTION FRANCHISE IS MADE BY OFFERING CIRCULAR ONLY.