Investment Info
Estimated Start-Up Costs and Application
The first step in getting started with Good Feet is to select a market area where you would like to operate your Good Feet Store(s). Depending on the size of the market area, Good Feet may ask that you agree to open multiple locations over a defined period of time. Good Feet’s initial franchise fee is $20,000 for your first store, and $10,000 for each store you open thereafter in your existing territory. The on-going monthly royalty fees are a 2% management fee and a 3% advertising fund fee (total combined monthly royalty is 5% of gross sales).
Initial investment: |
$20,000+ |
Store décor items: |
$4,000-$6,700 |
Furnishings/equipment: |
$4,000-$7,500 |
Leasehold improvements: |
$6,950-$40,000 |
Information System: |
$3,100-$7,800 |
Initial inventory: |
$15,000-$30,000 |
Rent and Security Deposit: |
$5,000-$11,000 |
Insurance/bonds: |
$1,000-$1,500 |
Advertising Materials: |
$5,800-$24,250 |
Travel costs while training: |
$900-$1,800 |
Miscellaneous Expenses: |
$1,000-$1,500 |
Grand Opening funds: |
$10,000-$50,000 |
Additional operating funds: |
$15,000-$50,000 |
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Total estimated start up range: |
$91,750-$252,050 |
This estimate does not take into account any real estate purchase. |
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Good Feet is an SBA approved franchise and is listed in the Franchise Registry at www.franchiseregistry.com. This means faster review and processing of your SBA loan application!
How Much Can You Expect: Understanding Earnings Claims
If you’re considering purchasing a franchise, and wonder just how much you will be able to earn and whether the business is a good, sound investment, now is a great time to learn more about earnings claims, and what a franchisor can and cannot tell you.
What is a Franchise Earnings Claim?: As you might have assumed, an earnings claim is any information you receive as a prospective franchisee which allows you to attempt to predict a range or level of potential sales, costs, income, or profits.
Franchisors Can Legally Provide Information about Earnings Potential: Often, people believe that by law, franchisors cannot provide prospects with any information on earnings potential. This is, in fact, not the case at all. There are stringent franchise laws in place to protect both the franchisor and the franchisee. In many states, the UFOC (Uniform Franchise Offering Circular) must be registered with a state agency in order for the franchisor to legally sell franchises in that particular state.
Some franchisors simply do not feel comfortable giving earnings claim data to prospects. This is completely acceptable and legal. In the UFOC, a legal earnings claim, if made available, will be in Item 19 of the document. Item 19 is based completely on historical data from the company’s units and may include the following information: Various costs, ranges of sales at actual locations, statistical data about operations, and any other pertinent financial information. Item 19 is legitimate because it is a formal, written, historical earnings claim. Earnings claims that are not historical, written, or formal (filed with states) are not legal and cannot be accepted as legitimate.
What Isn’t Legal?: Many prospective franchisees make the mistake of asking franchisors how much money they will make if they purchase the franchise. A very common question, salespeople and franchisors cannot legally provide you with an answer. Whether you receive a scribbled number on a piece of paper or a range of figures within a conversation, do not rely on this information. In fact, the best thing you can do is not ask this question. The only legal form of an earnings claim is found in the UFOC in Item 19 and it simply tells you how well the company’s units have performed in the past.
Come To Your Own Conclusion: When choosing a franchise to buy, thoroughly research the company you’re considering and then come up with your own conclusion on how well your business will do. It’s important to remember that it is not only illegal but also not possible for anyone during the buying process to tell you that you will earn as much as the company’s leading franchisee. Instead, read the UFOC carefully, contact franchisees, present and former, and decide for yourself whether a franchise will be a sound investment for you.
Finance Opportunities
Good Feet works with numerous franchise financing companies with an array of options for financing your franchise. Here’s a list of companies we can refer you to:
Business Resource Store (www.businessresourcestore.com): The Business Resource Store is offering potential Good Feet franchisees financing of up to 80% of the project cost, with up to $45k in operating capital. They offer loans for up to 10 years, as well as lines of credit, real estate loans and leases. You can also look to the Business Resource Store for assistance in creating business plans, financial projections, and more.
Benetrends (www.benetrends.com): Benetrends offers “The Rainmaker Plan” franchise financing based on a potential franchisee’s retirement funds; accessing those funds without penalty or taxes! Log on to the website to learn more!
Franchise Finance (www.franchise-finance.com): Franchise Finance originates loans & leases for the franchise industry, including startups, multiple owners, re-sales, remodels, or franchisor corporate stores. Items financed may include franchise fees, equipment, leaseholds and signs. Terms of 5 to 7 years with balloons are available. Depending on your loan amount, no extra collateral is required, the actual assets secure the financing.
Emerald Commercial Finance, Inc. (www.emeraldcommercialfinance.com): Emerald can finance up to 90% of your project cost. They offer minimal closing costs as well as fixed rates for up to 7 years. They even offer an optional interest only payment for your first seven months in business.
Guidant (www.guidantfinancial.com): Guidant’s “Audeo” program has been developed over the years by a team of attorneys who specialize in tax and ERISA law, and professionals in the field of business and finance. The “Audeo” program was built to enable small, private companies to utilize retirement funds as a source of business capital.
*This information in no way is intended as a guarantee of financing or an endorsement of any particular financing organization. It is intended for informational purposes only.
Good Feet Franchise Application
The first step to Good Feet franchise ownership is to complete the application below and submit it to Good Feet for review and approval. Be sure to specify where you would like to open a Good Feet Store!
Download franchise application here.