MINNESOTA COMMERCE - Unhappy Franchisee

(7) ESTIMATED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT
This table provides an estimate of your initial investment for your Mateo® Distributorship.
Type of Expenditure
Amoimt:
Estimated Range Of
Cost (Low-High)
Method of
Payment
When Due
To Whom Payment
Is To Be Made
Initial Inventory^' $50,000 - 60,000 Lump Sum Prior to Start Mateo or
Predecessor
Distributor
Acquisition and
Establishment of Time
Payment Reserve
Accounts-'
TfiKrkMobile Store - three
months lease payments-
$18,000-23,000 Lump Sum Prior to Start Mateo and/or
Predecessor
Distributor
$3,'100 8Q800-
105,000
Monthly
Installments
Monthly/Upon
Delivery
Dealer or leasing
company
Computer Hardware- $2,600 - 2,900 Lump Sum Monthly/Upon
DeUvery
Supplier
Computer Software and
Intemet Service^' - three
months payments
$1,641-2,404 Monthly
Installments
Prior to Start
Mateo and Intemet
and Credit Card
Service Providers
Insurance - three months
premiums^'
Travel, Lodging and Meal
Expenses-
$915-2,500 Lump Sum Prior to Start Supplier
$170-2,515 Lump Sum Prior to Start Airlines, Hotels &
Restaurants
Professional Services- $150-2,000 Lump Sum As Arranged Attorneys,
Accountants and
other professionals
Fixtures, Supplies,
Licenses^'
Additional Funds - three
months^'
$500-3,000 Lump Sum Prior to Start Suppliers
$5,000- 13,500 Lump Sum Prior to Start Suppliers, as
incurred
TOTAL $82,376 $191776 -
Sm8l9
Notes:
Payments are not refundable unless otherwise noted.
(I)
Your initial inventory will cost between $50,000 and $60,000. The current Distributor Starter
Inventory is generally $54,000. You must maintain or exceed this amount of inventory during the
term of your Distributorship. This amount may increase periodically, due to various factors, such as
the cost of goods, the product mix, and/or the introduction of new tools (see Item 10). If you qualify,
15
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