Step 1: Investment
Your Estimated Investment in
Opening a
Russell Watergardens & Koi Franchise
| Description | Low-Range |
High-Range |
Franchise Fee *1 |
$35,000 |
$35,000 |
| Real Estate/Rent *2 | $2,300 |
$30,000 |
| Utility Deposits *3 | $0 |
$500 |
| Leasehold Improvements *4 | $1,500 |
$5,000 |
| Insurance *5 | $750 |
$3,000 |
| Office Equipment and Supplies *6 |
$1,000 |
$2,000 |
| Training *7 | $5,000 |
$10,000 |
| Signage *8 | $3,000 |
$5,000 |
| Furniture, Fixtures & Equipment *9 | $12,500 |
$42,000 |
| Initial Inventory *10 | $90,000 |
$140,000 |
| Computer/POS System *11 | $18,000 |
$20,000 |
| Display Ponds & Water Features *12 | $30,000 |
$60,000 |
| Grand Opening *13 | $7,000 |
$15,000 |
| Licenses & Permits *14 | $50 |
$200 |
| Legal & Accounting *15 | $1,500 |
$3,500 |
| Additional Funds (3 months) *16 | $30,000 |
$50,000 |
| TOTAL *17 | $237,600 |
$421,200 |
Money: The investment range is mostly dependent on real estate. The total cost of each unit varies by size and location. 30% of the total investment must be in cash, which includes working capital. The rest, 70%, we assume will be financed. So the question is, do you have $71,000 - $126,000 cash available and the ability to finance $166,000 - $294,000?
Most people are not aware that you can use 401K's and other similar investment vehicles without penalty to invest in a franchise business. If you have these kind of instruments you can consider using them to fund your Russell Watergardens & Koi franchise.
*1 Franchise Fee. The franchise fee and its refund policy is described in greater detail in ITEM 5 of the Franchise Disclosure Document. We do not finance any fee. The Franchise Fee is not a "purchase price", or "the price of the franchise" - it is a way that we recover some of the expenses related to "Putting you into our Business." It helps us recover a portion of the costs associated with developing the franchisee such as overhead, salaries, travel, marketing materials, legal, and accounting.
*2 Real Estate/Rent. You must lease or otherwise provide a suitable facility for the operation of the franchised store. Typically, the facility will range in size from 14,000 to 18,000 square feet. It is difficult to estimate lease acquisition costs because of the wide variation in these costs between various locations. Lease costs will vary based upon square footage, geographical location, cost per square foot and required maintenance costs. The low estimate is based on an assumption that you will have to pay a security deposit equal to one month’s rent and is based on leasing a facility of 14,000 square feet. The high estimate is based on an assumption that you will have to pay a security deposit equal to 2 months’ rent to lease the facility and is based on leasing a facility of 18,000 square feet at a higher cost per square foot. Some lessors may refund the security deposit if you cancel the lease before you occupy the premises. The estimated range of costs in this category only includes your costs to enter into a lease agreement for the facility. Estimated rental costs for 3 months are included with the category “Additional Funds,” (see Note 16 below).
*3 Utility Deposits. If you are a new customer of your local utilities, you will generally have to pay deposits to obtain services, including electric, telephone, gas and water. The amount of the deposit and whether the deposit is refundable will vary depending on the local utilities. You should contact your local utilities for more information.
*4 Leasehold Improvements. To adapt a newly acquired facility for operation of the franchised store, it must be renovated. The cost of the leasehold improvements will vary depending on factors including the size, condition and location of the facility, local wage rates and the cost of materials. The low estimate assumes that your landlord will provide a partial build-out allowance. The amounts you pay for leasehold improvements are typically non-refundable. You should inquire about the refund policy of the contractor at or before the time of hiring.
*5 Insurance. You must purchase the following types and amounts of insurance:
(1) “all risk” property insurance coverage for assets of the franchised store.
(2) workers’ compensation insurance and employer liability coverage with a minimum limit of $100,000 or higher if your state law requires.
(3) comprehensive general liability insurance with a minimum liability coverage of $2,000,000 per occurrence or higher if your state law requires.
(4) business interruption insurance.
(5) automobile liability insurance of at least $1,000,000 or higher if your state law requires.
(6) insurance coverage for contractual indemnity.
Factors that may affect your cost of insurance include the size and location of the franchised store, value of the leasehold improvements, number of employees and other factors. The amounts you pay for insurance are typically non-refundable. You should inquire about the cancellation and refund policy of the insurance carrier or agent at or before the time of purchase.
*6 Office Equipment and Supplies. You must purchase general office supplies including stationery, business cards and typical office equipment. Factors that may affect your cost of office equipment and supplies include local market conditions, competition among suppliers and other factors. We do not know if the amounts you pay for office equipment and supplies are refundable. Factors determining whether office equipment and supplies are refundable typically include the condition of the items at time of return, level of use and length of time of possession. You should inquire about the return and refund policy of the supplier at or before the time of purchase. Top ...
*7 Training. The cost of initial training is included in the franchise fee, but you are responsible for transportation and expenses for meals and lodging while attending training. The total cost will vary depending on the number of people attending, how far you travel and the type of accommodations you choose. These expenses are typically non-refundable. Before making airline, hotel, rental car or other reservations, you should inquire about the refund policy in the event you need to cancel or reschedule your reservations. Top ...
*8 Signage. This range includes the cost of all signage used in the franchised store. The signage requirements and costs will vary based upon the size and location of the franchised store, local zoning requirements, landlord requirements and local wage rates for installation. The amounts you pay for signage are typically non-refundable. You should inquire about the return and refund policy of the suppliers at or before the time of purchase. Top ...
*9 Furniture, Fixtures & Equipment. You must purchase and/or lease and install furniture, fixtures and equipment and décor necessary to operate your franchised store, including shelving and pallet shelving, a sales counter, office, and fish quarantine room and closing area that meet our standards and specifications. The cost of the furniture, fixtures and equipment will vary according to local market conditions, the size of the facility, suppliers and other related factors. We do not know if the amounts you pay for furniture, fixtures or equipment are refundable. You should inquire about the return and refund policy of the suppliers at or before the time of purchasing or leasing.
*10 Initial Inventory. You must purchase an initial supply of Russell Watergardens & Koi/Russell Technologies products in a start-up package from our affiliate, R.W. Distributing, Inc. The start-up package includes the full Russell Technologies Hydro product and equipment line. (see ITEMS 5 and 8). Costs vary based upon the size and location of the franchised store, time of season, suppliers and other related factors. As described in ITEM 5 of the Franchise Disclosure Document, the amounts you pay for the start-up package may be refundable, depending on the condition of the item and whether the item is in a saleable condition. We do not know if the amounts you pay for other inventory items may be refundable. Factors determining whether other inventory items are refundable typically include the condition of the item at the time of return, level of use and length of time of possession. You should inquire about the return and refund policy of the suppliers at or before the time of purchasing.
*11 Computer/POS System. You must purchase and use the CAM Commerce POS system, computer equipment and software as described in ITEM 11 of the Franchise Disclosure Document. The amounts you pay for the POS system, computer equipment and software are typically non-refundable, or if refundable, may be subject to a re-stocking fee. You should inquire about the return and refund policy of the suppliers at or before the time of purchasing.
*12 Display Ponds and Water Features. You must spend a minimum of $30,000 on display ponds and water features before beginning operations. The cost of purchasing and installing the display ponds and water features varies based upon the size and location of the franchised store, suppliers and other related factors. The amounts you pay for the display ponds and water features are typically non-refundable.
*13 Grand Opening. You must spend a minimum amount we specify on grand opening advertising during the first 3 months of operation. We determine the minimum based on our assessment of your advertising cost in your area and at the time of year that you are opening. You may choose to spend more. See ITEM 11 of the Franchise Disclosure Document. Factors that may affect the actual amount you spend include the type of media used, the size of the area where you advertise, local media cost, location of the franchised store, time of year and customer demographics in the surrounding area. The amounts you spend for grand opening advertising are typically non-refundable. You should inquire about the return and refund policy of the suppliers at or before the time of purchasing.
*14 Licenses & Permits. State and local government agencies typically charge fees for occupancy permits, operating licenses, construction permits and sales tax licenses. Your actual costs may vary from the estimates based on the requirements of state and local government agencies. These fees are typically non-refundable. You should inquire about the cancellation and refund policy of the agencies at or before the time of payment.
*15 Legal & Accounting. You will need to employ an attorney, an accountant and other consultants to assist you in establishing your franchised store. These fees may vary from location to location depending upon the prevailing rates of local attorneys, accountants and consultants. These fees are typically non-refundable. You should inquire about the refund policy of the attorney, accountant or consultant at or before the time of hiring. Top ...
*16 Additional Funds. We recommend that you have a minimum amount of money available to cover operating expenses, including rent, utilities and employees’ salaries, for the first 3 months that the franchised store is open. However, we cannot guarantee that our recommendation will be sufficient. Additional working capital may be required if sales are low or operating costs are high. These expenses are typically non-refundable. Top ...
*17 Total. In compiling this chart, we relied on our industry knowledge and experience, and that of our affiliates. The amounts shown are estimates only and may vary for many reasons including the size and condition of your facility, the capabilities of your management team, where you locate your franchised store and your business experience and acumen. You should review these estimates carefully with an accountant or other business advisor before making any decision to buy a franchise. These figures are estimates only and we cannot guarantee that you will not have additional expenses in starting the franchised store.
Note: This is not an offer to sell you a franchise. An offer can only be by the prospectus in the form of a Franchise Disclosure Document. This document will be presented to you at a meeting set up at your convenience.
This information is not intended as an offer to sell, or the solicitation of an offer to buy a franchise. It is for information purposes only. Currently, the following states and countries regulate the offer and sale of franchises:
This web site and the information contained herein does not constitute the offer or sale of a franchise. The offer and sale of a franchise can only be made through the delivery and receipt of our Franchise Disclosure Document (FDD). There are certain states that require the registration of a FDD before the franchisor can advertise or offer the franchise in that state. We may not be registered in all those registration states and may not offer franchises to residents of those states or to persons wishing to locate a franchise in those states.