the Money Talk

Financial Requirements

Within the United States: In the United States total project costs to open and operate a single store can be between US $167,300 and US $245,500 including $25,000 that must be paid to the franchisor as an initial franchise fee. This amount will vary depending upon what type of venue you choose for your location, i.e. mall or lifestyle center. The amount will be substantially more if you are considering more than one store, such as a franchise development agreement.

Outside the United States: For single stores we look for franchisees with liquid assets of at least US $80,000 and net worth over US $200,000. For franchise development agreements we require substantially more capital and the amounts will vary based upon the number of stores involved in the agreement. Total project cost will also vary from country to country based upon labor, real estate, construction costs and other local differences.

Does Flip Flop Shops^Ž Provide Financing?

Flip Flop Shops^Ž does not provide financing or derive profits from outside lenders. The company can assist with finding appropriate lenders for individual financing needs.

What Are The Fees?

Single and subsequent single store agreements in the United States: The initial fee for a single store in the US is US $25,000. The weekly royalty is five percent (5%) of gross sales, which is paid weekly. In addition, one half of one percent (0.5%) of gross sales is contributed to the Brand Building & Marketing Support Fund on a weekly basis. (see below)

Development agreement within or outside the United States: This agreement provides the ability for franchisees to commit to opening and operating multiple stores. We are interested in growing both internationally and domestically through development agreements with the right people.

What Is The Brand Building & Marketing Support Fund?

This fund provides franchisees with professional visual merchandising and local marketing materials. Fees contributed to the Brand Building & Marketing Support Fund are paid weekly and are currently one half of one percent (0.5%) of gross sales.

IFO

This Could Be Your New Office

The Franchise Registry (www.franchiseregistry.com) is a national online listing of approved franchise systems, like Flip Flop Shops, whose franchisees receive expedited loan processing when applying for financial assistance from the U.S. Small Business Administration (SBA). By centralizing the review process, the Franchise Registry allows the SBA to make consistent eligibility decisions regarding franchise systems, to cut red tape in the system, and to speed access to SBA financial assistance. Small business owners get better service and quicker loans.