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HOME ABOUT US WHY BRAIN-O-MAGIC WHO WE ARE LOOKING FOR FRANCHISE PROCESS FAQ CONTACT US
 

ESTIMATED INITIAL INVESTMENT
Type of Expenditure Amount Method of Payment When Due To Whom Payment is to be Made
Initial Franchise Fee1 $17,500 Lump sum When Franchise Agreement is signed Us
Initial Inventory and Supplies Fee2 $5,000 - $6,000 Lump sum  When Franchise Agreement is signed Us
Shipping Costs for Initial Inventory and Supplies $100 - $200 As arranged As incurred Third party
Initial Marketing Campaign3 $1,000 - $3,000 Lump sum As incurred Us or other approved or designated suppliers
Security Deposit4 $938 - $2,963 As arranged As incurred Landlord
Leasehold Improvements5 $1,000 - $20,000 As arranged As required Contractors and third party suppliers
Architect, Engineer, Drawings $4,000 - $9,000 As arranged As incurred Approved architects
Signage6 $500 - $3,000 As arranged As incurred Approved suppliers
Furniture and Fixtures7 $3,000 - $7,500 As arranged As incurred Approved suppliers
Office Equipment, Classroom Supplies, and Telephone Services8 $850 - $1,850 As arranged As incurred Approved suppliers
Computer Hardware and Software9 $2,000 - $3,000 Lump sum As incurred Approved suppliers
Business Licenses, Permits, etc.10 $500 - $5,000 As agencies require As agencies require Approved agencies
Professional Fees11 $500 - $5,000 As arranged As incurred Your accountant, attorney, and other professionals
Insurance Deposits and Premiums12 $1,000 - $1,750 As agent requires Before opening Insurance carriers
Training Expenses13 $700 - $7,500 As arranged As incurred Transportation and lodging providers, restaurants
Working Capital (three months)14 $10,313 - $23,438 As arranged As incurred Various
Total15 $48,901 - $116,701      
  
Notes


Note1. See Item 5 for more information about the Initial Franchise Fee and available discounts.

Note2. These figures represent the cost of purchasing 25 to 30 Foundation Program Student Packages and 25 to 30 Fast Track Program Student Packages. See Item 5.  The purchase price for each student package current is $100.

Note3. You must promote the opening of your Education Center, which includes hosting an open house event. See Item 11 for more information on initial marketing and promotion requirements, including the open house event.

Note4. A typical Education Center has one to three classrooms and occupies 750 to 1,250 square feet of commercial space. All Education Centers require space for a reception area, at least one classroom and one private office, a private bathroom for students, and space to store student and marketing materials. You may elect to create additional space to be used by other teachers working at the Education Center. The figures in the chart represent a lease security deposit equal to one month’s rent (assuming that you lease 750 to 1,250 square feet of space at a rate ranging from $1.25 to $2.25 per square foot). The high figure also includes a utility security deposit equal to one month’s utility charges.

Note5. Construction and remodeling costs vary widely, depending upon the location, design, configuration and condition of the premises, the condition and configuration of existing services, and facilities such as air conditioning, electrical and plumbing, and the terms of your lease. These figures do not take into account any tenant improvement allowance negotiated with landlord.

Note6. These figures represent the cost of purchasing exterior graphics and signage. Your costs may vary based on the layout and design of your Education Center.

Note7. These figures include the cost to purchase classroom furniture, office furniture and reception area furniture, including tables, chairs, and book cases, built-ins and other fixtures needed to suit up to 12 students per class at a given time.

Note8. Includes items such as writing utensils, paper, workbooks, folders, cleaning supplies, calculators, desk supplies, stationary, business cards, office consumables, and telephone equipment.

Note9. Includes a desktop or laptop for office, printer, and various software that we require. See Item 11 for more information about computer hardware and software requirements.

Note10. Includes business license, building permit (if applicable) and Certificate of Occupancy. Your actual costs may vary based on city requirements and location of the property.

Note 11. These figures represent the estimated cost of hiring an attorney to assist you in evaluating the franchise opportunity and in forming a business entity, and accountants’ cost of setting up a new business

Note12. See Item 8 for more information about your minimum insurance requirements. The low estimate accounts for the first semi-annual premium and the high estimate for the annual premium for the business policy and a three month allocation for the worker’s compensation premium.

Note13. See Item 11 for more information about our initial training program and training requirements. The low estimate assumes that your Operating Principal will drive to the training site and the high estimate assumes that your Operating Principal and one additional attendee will fly to the training site and includes hotel stay for up to 10 days. 

Note14. These estimates do not include managerial salaries or any payment to you. These estimates also do not take into account finance payments, charges, interest, and related costs you may incur if any portion of the initial investment is financed. These amounts are the minimum recommended levels to cover operating expenses, including rent, and your employees’ salaries for three months. However, we cannot guarantee that those amounts will be sufficient. Additional working capital may be required if student enrollment is low or fixed costs are high. We relied on our affiliate’s operating experience in compiling these working capital estimates. These are estimates only. Your actual costs may vary, and may exceed these amounts.
 Note 15. All amounts are non-refundable unless otherwise noted.
 
  franchise@brainomagic.com | 510-MY-BRAIN - 510-692-7246 | 39648 Mission Blvd, Fremont CA 94539

 






The information provided on this website 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 in the U.S. regulate the offering and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you are a resident of, or desire a franchise in one of these states, we will not offer you a franchise until we have complied with applicable presale registration and disclosure requirements in your state, which includes providing you with the approved FTC Disclosure Document and any addendum required by your state.