What Are The Startup Costs?
Just Between Friends franchise is a low-investment, work-from-home business
*The results of each franchisee are likely to differ, but one franchisee talks about her experience with multiple territories.
Entrepreneurs researching ownership of a work-from-home franchise rightly look for which business opportunity presents the best potential for long-term success. We’re proud to announce, for the third year in a row, that Just Between Friends was listed in the Top 10 list of “Best Franchise to Buy in 2016,” by Forbes, which measured five years of our continued growth when determining our ranking. The reason why we rank so highly is in large part due to what our continued growth over the last five years symbolizes in the marketplace: the Just Between Friends work-from-home franchise has plenty of room to grow, as consumers all across the nation prove that the age of thrifty shopping is here to stay.
The great benefit of owning a Just Between Friends consignment sales event franchise is the savings you will pass on to your customers, many of whom are parents starting families and grandparents who want to dote on their grandchildren. Your own investment in a Just Between Friends franchise will be affordable, with a relatively quick ramp-up time and tons of support to ensure that your sales events are successful.
The beauty of our model is that your business can be as large or as small as you would like to manage. While some of our work-from-home franchise owners are stay-at-home parents who own one territory, many own multiple territories. Our minimum requirement is that you host two sales annually per territory.
Below, you will see the Item 7 Startup costs that are listed in our Franchise Disclosure Agreement. The costs listed below reflect startup and operating costs through your first event — but they don’t reflect the amount of money you need to possess to become a franchisee.
Your estimated initial investment for a Just Between Friends franchise
|Type of Expenditure||1 Unit||2 Units||3 Units||When Due||To Whom Payment Is Be Made|
|Initial Franchise Fees (1)||$14,900||$27,900||$38,900||Execution of Franchise Agreement||JBF|
|Initial Equipment (2)||$4,000 - $6,700||$4,000 - $6,700||$4,000 - $6,700||Varies with supplier||Persons or entities other than JBF|
|Initial Inventory (3)||$2,500||$5,000||$7,500||Before first sales event||Persons or entities other than JBF|
|Storage (4)||$0 - $375||$375 - $750||$750 - $1,125||Varies with Supplier||Persons or entities other than JBF|
|Pre - Opening Labor (5)||$700 - $1,000||$1,400 - $2,000||$2,100 - $3,000||Prior to Sales Event||Persons or entities other than JBF|
|Estimated Travel & Expenses during training and site visit (6)||$1,800 - $2,800||$1,800 - $2,800||$1,800 - $2,800||Prior to training and site visit||Persons or entities other than JBF|
|Technology Update (7)||$1,500||$3,000||$4,500||Before Opening||JBF|
|Building Lease||$900 - $3,750||$1,800 - $7,500||$2,700 - $11,250||As required by landlord||Landlord|
|Business Registration & Tax Permits||$800 - $1,000||$800 - $2,000||$800 - $3,000||Before Opening||Government|
|Insurance (8)||$500 - $1,000||$500 - $2,000||$500 - $3,000||Per policy||Insurance Company|
|Advertising||$2,380 - $3,730||$4,760 - $7,460||$7,410 - $11,190||At or before event||Persons or entities other than JBF|
|Additional Funds for period from Signing agreement to first sale (9)||$2,500 - $5,550||$2,500 - $11,000||$2,500 - $16,500||As required||Persons or entities other than JBF|
|Website & Management Tools (10)||$294 ($49/month)||$588 ($98/month)||$882 ($147/month)||1⁄2 due January 15, 1⁄2 due July 15||JBF|
|JBFDesignonline.com (optional)||$0 - $400||$0 - $400||$0 - $400||Subject to change by 30 days
prior written notice.
|JBF but this is (optional at the
discretion of each franchisee)
|TOTAL: (11)||$32,774 -
Fill out the form to request information or download our franchise report and we’ll walk you through the specifics of your particular investment.
(1) See Section 5.5. Due to state regulations, in California, Maryland, Illinois and Washington, JBF has agreed to defer the payment of the initial franchise fee and other payments due to JBF until after the new franchisees in those states have successfully completed the initial training.
(2) See Section 5.10. The equipment required for operating a JBF Franchise is listed in the
Operations Manual, and includes, but is not limited to, tables, racks, office equipment, bar-coding
program, computers, printers, scanners, credit card machines, and Microsoft Word, Excel, and Quickbooks software. The costs for recommended equipment will depend upon whether you purchase or lease, whether you acquire new or used equipment, any financing terms you employ and a variety of other factors. We do not supply any of the equipment at this time. We do provide you with the JBF computer software which is compatible with JBF’s website. The cost of the JBF software is included in your initial franchise fee.
(3) Initial Inventory includes children’s and maternity items purchased for resale at the first JBF Sales Event.
(4) The estimates provided herein are based on storage fees of $125 per month for three months of storage prior to the first consignment sales event. The low estimate of zero assumes that you have a garage or other storage available in your home location.
(5) Pre-Opening Labor represents the estimated cost for having individuals assist you in preparing your initial inventory for sale at your first JBF Consignment Sales Event.
(6) See Section 5.13. You must make arrangements and pay the expenses for any persons attending the training program, including transportation, lodging, meals and wages. The amount expended will depend, in part, on the distance you must travel, the type of accommodation you choose and on your own personal desires and choices. JBF’s estimates contemplate training one Owner for 40 hours over 5 days and does not include any wages during this time. The estimate includes an estimated $400-$900 for hotels; an estimated $200-$400 for meals; an estimated $700-$900 for travel; and an estimated $500-$600 for attending an actual JBF consignment sale. If you are entering into a multi-unit development agreement, you will only need to attend the training program once. If you request special support services, (a franchise owner at your event) you must pay an hourly fee and reimburse expenses. The estimates assume that you are obtaining initial training for one or two Owners during one of JBF’s regularly scheduled initial training programs and are not incurring additional training fees. See Section 4.1 and 5.13
(7) Daily rentals for starting sales venues vary significantly. Many venues have daily rates from $300 to $750 per day (but costs in your area may be different), and most initial franchisees lease 3-5 days. See Item 19. Franchisee must do venue research prior to the application being approved.
(8) See Section 5.7. which sets forth minimum levels of insurance. The costs of this coverage varies. JBF may negotiate group rates for franchisees through an approved supplier. Franchisees are not required to participate in the group plan or purchase insurance through an approved supplier.
(9) The estimate provided by JBF for additional funds is based on information reported to JBF by its franchisees and on JBF and its Affiliate’s industry experience and is an estimate for additional funds through the first sale. Gross Sales and costs of sales may vary significantly depending on a number of factors. Depending on Gross Sales and costs of sales, cash flow from initial JBF Sales Events may not be sufficient to fund necessary pre-paid costs for succeeding JBF Sales Events, and some additional investment for working capital may be needed. Each franchisee should do an independent investigation into the costs of sales in his or her anticipated territory to determine the amount of additional working capital which may be required. Additional working capital may be required if sales are lower than we anticipate or costs are higher than we anticipate. Franchisees are responsible for advertising in advance of each semi-annual sales event and for expenses incurred in holding these sales events. Such costs include,but are not limited to, office supplies, rack rentals or rack assembly, security, table rentals, drape, contract labor, food and beverage and other miscellaneous expenses incurred at the discretion of the franchisee. None of the estimated expenditures listed in the table which are payable to JBF are refundable. Payments made to others may or may not be refundable, depending upon what arrangements the franchisee makes with those persons. We do not offer financing for any of the above expenditures. We make no representation that your costs will come within the ranges estimated and cannot guarantee that you will not incur additional expenses.
(10) Webhosting and Management Tools includes the website, customer tagging software, point of sale system, customer service and surveying tools, database management, training module, company intranet, email marketing, company store, blog, and other management tools. Beginning in 2017, this fee will be $69 per franchise location per month (payable in two installments twice annually). Typically, only one of the twice annual installments is due to JBF prior to the first JBF Consignment Sales Event.
(11) In compiling this chart, we relied on our and our Affiliate’s industry knowledge and experience. The amounts shown are estimates only and may vary for many reasons. 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 JBF Consignment Sales Business.