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 | Kilwin's Franchise Application Process |
Financial Requirements
A qualified potential franchisee must have a minimum net worth of $500,000 and cash on hand of $100,000 to $120,000.
Your initial investment will be $304,470 to $695,000. Please review the Initial Investment Breakdown below. The range is based on many things, such as; square footage of space, lease rate, time
of year you open, etc.
We use the following process to help us and you determine whether or not a Kilwin's Franchise is for you. Once you are approved we
will proceed through the licensing process. Prior to completing the initial information form, please review our financial requirements to assure you meet the criteria.
Types of Franchises:
Kilwin's will franchise a single store, multiple stores, or will enter into an exclusive territorial agreement in a
defined area, subject to agreeable terms and operationally qualified individuals or corporations. In addition, Turn-Key Franchise Opportunities are also available.
Areas of Development
We are currently concentrating our efforts for expansion in states east of the Mississippi. Also please note we are currently only franchising within the United States.
Breakdown of Initial Investment:
| Franchise Fee |
$40,000 |
to |
$40,000 |
| Land lease/rent |
$20,000 |
to |
$80,000 |
| Plans and Construction Cost (leasehold improvements) |
$55,000 |
to |
$230,000 |
| Equipment |
$150,000 |
to |
$231,000 |
| Initial Inventory |
$25,000 |
to |
$37,000 |
| Signs |
$3,500 |
to |
$20,000 |
| Initial promotion and advertising |
$1,000 |
to |
$10,000 |
| Insurance |
$2,200 |
to |
$18,000 |
| Training (travel and living expenses 2 people) |
$1,570 |
to |
$4,500 |
| Business Licenses |
$100 |
to |
$1,000 |
| Professional Fees ( i.e. attorney, architect) |
$1,000 |
to |
$7,000 |
| Additional Funds (working capital) |
$5,000 |
to |
$15,000 |
| Security Deposits (estimated phone & utilities) |
$100 |
to |
$1,500 |
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| TOTALS |
$304,470 |
to |
$695,000 |
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Monthly Royalty Fee:
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Advertising Fee:
- 1% - 4% of gross sales
(detailed in UFOC)
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Services:
- Assistance in site selection & lease negotiations
- Interior design (will require blueprints of space)
- Equipment list
- Two week training at our facility & on site
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Ongoing support:
- On-Line training, operations manual
- Promotional assistance
- Field representatives/consultation
- Newsletters
- Annual Conventions
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THE FIRST STEP IS TO COMPLETE THE Initial Information Form
and return it to us in order to take the process to the next step. .
The approval process may take up to two weeks to complete. This will include obtaining information on your choice of location,
phone conversations with members of the Kilwin's Franchise staff, personal, financial and professional reference checks.
Our disclosure documentation or Uniform Franchise Offering Circular will then be forwarded to those approved candidates. The receipt page located in the UFOC must be signed, dated and returned to our office.
Once approved, the next step is to send a $7,500 deposit. The Deposit Agreement can be found in the UFOC. The $7,500 deposit will be credited against the total franchise fee of $40,000. The deposit agreement is in effect for 180 days (6 months). Once you have a specific geographic area in mind, our site location consulting company will go to work for you to evaluate the site.
SITE CRITERIA:
- Pedestrian traffic counts (number of people that walk by the location)
- Pedestrian traffic patterns and peak business hours of the day
- Year round and/or seasonal pedestrian traffic information
- Makeup of pedestrian traffic; local residents, tourists, resorters, etc.
- Surrounding area and overall market; merchant mix, residential areas, and area attractions
- Competition
- Restaurants, hotels and bed and breakfasts in immediate area of location
- Schedule of events
We will give you our opinion and approval on your choice of location. Our opinion is only one factor of many that you should consider in making your decision. Our approval of your site should not be interpreted as an indicator of success.
A copy of the blueprints and/or dimensions of the space should be obtained prior to our visit so we can do a preliminary store layout. If requested, we will also provide input in negotiating your lease.
We do not get involved in financing. However, we will provide you with information regarding a loan application, along with a
pre-opening checklist and preliminary equipment list. Once your financing has been approved, you should notify Kilwin's in writing immediately of the approval.
The next step is to agree upon and sign the Franchise Agreement and sign the lease on your space.
When the Franchise Agreement is signed the balance of $32,500 franchisee fee is
due. Ideally, your lease should be signed at the same time the Franchise Agreement is signed.
The licensing process from the time we sign a Franchise Agreement to the opening date of your
shoppe usually takes at least three months.
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