The Investment

The Adam & Eve franchise Investment cost include everything investors need to get up and running and be a successful throughout the lifetime of their business. Estimates range from $151,550 - $345,700, depending on square footage requirements, costs in a particular geographic location and other variables. Except as otherwise described in the notes below, the preceding chart provides an estimate of your initial investment for a single Adam & Eve Store and the costs necessary to begin operation of your Adam & Eve Store. All costs listed are estimates only. Actual costs will vary for each franchisee and each location depending on a number of factors. All fees and payments are non-refundable, unless otherwise stated or permitted by the payee.

Initial Investment for an Adam & Eve Franchise
Item Amount  Payment Due Payment made to
 TOTAL $151,550 - $345,700      
Initial Franchise Fee $30,000 Lump Sum At Signing of franchise agreement Adam & Eve
Lease Deposit $12 - $30 square ft2 Lump Sum At Signing of Lease Landlord
Lease Improvements / Site Selection $12 - $15 square ft3 As Arranged As Arranged Contractor / Local Governments
Furniture / Fixtures $12 - $15 square ft4 As Arranged As Arranged F.C. Dadson & Co, or your approved supplier
Flooring $3 - $5 square ft4 As Arranged As Arranged Store Floors, or your approved supplier
Initial Inventory $50,000 - $100,0004 As Arranged As Arranged Adam & Eve / Suppliers
Signage $5,000 - $12,0006 As Arranged As Arranged Landlord / Sign Company / Graphic Artist
Training $1,000 - $2,0007 As Arranged As Incurred Airlines, Restaurants. Hotels
Computer Software / Training $3,000 - $7,500 As Arranged As Arranged Adam & Eve / Suppliers
Grand Opening Advertising $2,500 - $12,000 9 As Arranged As Arranged Media / Advertising Agency Graphic Artists
Utility Costs & Deposits $500 - $1,00010 As Arranged As Arranged Utility Company or Landlord
Permits & Licenses $100 - $50011 As Arranged  As Incurred Governmental Authorities
Prepaid Insurance Premiums $1,000 - $3,00012 Lump Sum As Incurred Insurance Carrier / Broker
Miscellaneous Opening Expenses $1,000 - $3,00013 As Arranged  As Arranged Various Vendors
Additional Expenses (3 months) $10,000 - $25,00014 As Arranged  As Needed Employees / Suppliers

Except as otherwise described in the notes below, the preceding chart provides an estimate of your initial investment for a single Adam & Eve Store and the costs necessary to begin operation of your Adam & Eve Store. All costs listed above are estimates only. Actual costs will vary for each franchisee and each location depending on a number of factors. All fees and payments are non-refundable, unless otherwise stated or permitted by the payee.

Notes:
1. See Item 5. Adam & Eve does not finance the initial franchise fee.

2. If you do not own adequate or appropriate space, you must build or lease the space for your Adam & Eve Store. The figures in the chart are based on Adam & Eve’s estimate of the cost of your lease or sublease for the leasehold premises. The typical space for a Adam & Eve franchise contains a minimum of 2000 square feet. Rents will vary depending upon factors including size, conditions, and location of the leased premises, and the local real estate market conditions. The figures in the chart reflect an estimate for a one month security deposit and the first month’s rent. Adam & Eve estimates that rentals will range between $2,000 and $5,000 monthly for 2000 square feet of commercial space. In addition, some landlords may require additional security deposits or rental payments upon execution of a lease. You should carefully investigate and evaluate all of the potential costs associated with a particular franchise location. The estimates provided in the chart do not contemplate construction costs.

3. Whether you own, build or lease space, you must conform the space to the standards specified by Adam & Eve. Adam & Eve will review and must approve your plans before you may operate as a franchisee. Before commencing any renovation or construction of the Adam & Eve Store, you, at your expense, must employ a qualified architect or engineer, if required by law, to prepare preliminary and final architectural and engineering drawings and specifications of the Franchised Business in accordance with Adam & Eve’s standard floor plans and specifications, which will be provided to you at no cost. These preliminary and final drawings and specifications must be submitted to Adam & Eve for its prior written approval. The cost of conforming the space will vary with the size of the space,the nature of the space before improvement, and the types of equipment, fixtures and other improvements you select within the standards specified by Adam & Eve. Construction costs in some areas of the country may exceed these estimates. We estimate your costs to be a minimum of $SQUARE FOOT!.

Adam & Eve will provide on-site evaluation as it may deem advisable as part of its evaluation of your requests for site approval. If on-site evaluation is deemed necessary and appropriate by Adam & Eve, it will conduct one on-site evaluation at Adam & Eve’s own expense; for each additional on-site evaluation (if any), Adam & Eve may require that you reimburse Adam & Eve for its reasonable expenses, including the costs of travel, lodging, and food.

Upon your written request within 45 days of the execution of the Franchise Agreement, Adam & Eve may, at its option, provide assistance to you for the purpose of finding an approved location for the Adam & Eve Store. You must pay all expenses of Adam & Eve in providing this assistance.

4. This estimate reflects the range in cost of purchasing the basic equipment necessary to operate the Adam & Eve Store. Basic equipment includes furniture that will be needed for the various rooms and back office, which may include desks, tables, chairs, and other items not included in Computer/Software expenses (Note 8). Fixtures may include lighting fixtures, restroom fixtures or similar items not included in Leasehold Improvement expenses (Note 3). We estimate your costs to be a minimum of $10 s/f. Your costs are estimated on a square foot basis.

5. At the time the Franchised Business opens, you must stock your Adam & Eve Store with an initial inventory of products, accessories, equipment, inventory and supplies prescribed by Adam & Eve in the Manuals or otherwise in writing.


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