Item 7. Initial Investment
As a candidate, you should have a minimum of $90,000 in liquid capital and a net worth of at least $350,000 to get started. The total cost to open a new AAMCO Center can range from $263,100 to $400,200.
Type of Expenditure
Type of Expenditure
Amount
Method of Payment
When Due
To Whom Payment is to be Made
Initial License Fee
Type of Expenditure
Initial License Fee
Amount
$39,500
Method of Payment
Installments
When Due
Upon Signing Franchise Agreement
To Whom Payment is to be Made
AAMCO
Business Coach Training
Type of Expenditure
Business Coach Training
Amount
$10,000
Method of Payment
Lump Sum
When Due
Before training
To Whom Payment is to be Made
AAMCO
First Year Advertising Advance
Type of Expenditure
First Year Advertising Advance
Amount
$26,000
Method of Payment
Lump Sum
When Due
Before training
To Whom Payment is to be Made
AAMCO
Grand Opening Advertising Expenses
Type of Expenditure
Grand Opening Advertising Expenses
Amount
$5,000
Method of Payment
Lump Sum
When Due
Before training
To Whom Payment is to be Made
AAMCO
AAMCO Security Deposit
Type of Expenditure
AAMCO Security Deposit
Amount
$10,000
Method of Payment
Lump Sum
When Due
Before training
To Whom Payment is to be Made
AAMCO
Travel Expenses for Training Program
Type of Expenditure
Travel Expenses for Training Program
Amount
$2,000 – $4,000
Method of Payment
As incurred
When Due
Before training
To Whom Payment is to be Made
Third Parties
Real Estate & Utility Deposits
Type of Expenditure
Real Estate & Utility Deposits
Amount
$14,000 – $43,000
Method of Payment
As incurred
When Due
Before opening
To Whom Payment is to be Made
Landlord, Utility Companies, other Third Parties
Leasehold Improvements
Type of Expenditure
Leasehold Improvements
Amount
$9,700 – $16,700
Method of Payment
As arranged
When Due
As arranged
To Whom Payment is to be Made
Landlord, other third parties
Signs
Type of Expenditure
Signs
Amount
$7,500 – $33,000
Method of Payment
As agreed
When Due
Before opening
To Whom Payment is to be Made
AAMCO
Shop Equipment, Supplies, Lifts & Installation
Type of Expenditure
Shop Equipment, Supplies, Lifts & Installation
Amount
$78,400 – $106,000
Method of Payment
As arranged
When Due
As agreed
To Whom Payment is to be Made
AAMCO and third parties (see Item 5)
POS System – Acquisition
Type of Expenditure
POS System – Acquisition
Amount
$2,500
Method of Payment
Lump Sum
When Due
Before opening
To Whom Payment is to be Made
AAMCO
POS System – 3 months Access/Support
Type of Expenditure
POS System – 3 months Access/Support
Amount
$500
Method of Payment
Installments
When Due
Monthly
To Whom Payment is to be Made
AAMCO or Supplier we designate (see Item 6)
Computers and Phone System – Hardware
Type of Expenditure
Computers and Phone System – Hardware
Amount
$6,500 – $10,000
Method of Payment
As incurred
When Due
As arranged
To Whom Payment is to be Made
Suppliers you choose (may include AAMCO)
Office Furniture
Type of Expenditure
Office Furniture
Amount
$5,500 – $7,000
Method of Payment
As incurred
When Due
As arranged
To Whom Payment is to be Made
Suppliers you choose (may include AAMCO)
Sales Materials
Type of Expenditure
Sales Materials
Amount
$500 – $1,000
Method of Payment
Lump Sum
When Due
Before opening
To Whom Payment is to be Made
AAMCO
Miscellaneous Costs & Professional Fees
Type of Expenditure
Miscellaneous Costs & Professional Fees
Amount
$4,000 – $10,000
Method of Payment
As incurred
When Due
As arranged
To Whom Payment is to be Made
Third Parties
Insurance
Type of Expenditure
Insurance
Amount
$1,500 – $2,500
Method of Payment
As incurred
When Due
Before opening
To Whom Payment is to be Made
Third Parties
Advertising Costs (13 weeks)
Type of Expenditure
Advertising Costs (13 weeks)
Amount
$0 – $13,500
Method of Payment
As agreed
When Due
Periodically (weekly or monthly) and as arranged
To Whom Payment is to be Made
AAMCO, Ad Pool, or regional/national program
Additional Funds
Type of Expenditure
Additional Funds
Amount
$40,000 – $60,000
Method of Payment
As incurred
When Due
As arranged
To Whom Payment is to be Made
Suppliers and other Third Parties
Ready to Franchise
with AAMCO?
Let’s Get Started
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