Investment

Cody Party Centre is a franchised operation that requires a total investment of approximately $150 000 to $250 000.00 for standard size new store. This amount excludes GST, which is 100% refundable.

Cody Party Centre financially pre-qualifies candidates who can confirm that they have approximately one-third of the total investment price available in unencumbered (free and clear) cash. Although the total cost of the store may be available to an applicant by way of a bank loan, we are of the belief that only two thirds of the cost of the store be borrowed so that the candidate does not enter the business with an unreasonable debt load. Experience has proven that unreasonable debt loads are detrimental to the success of the franchise.

If the unencumbered funds are to be borrowed against the applicants' equity in their home, the repayment of this mortgage must be supported by a sufficient outside source of income (i.e. one spouse/partner who is otherwise employed).

The $150 000 to $250 000.00 includes:

• $30,000 franchisee fee
• $120 000(approximately) is for the initial inventory. (May vary depending on geographical location)
• $60 000 (approximately) is the capital required for equipment, construction, (Contingency and Construction Management Fee) legal costs, accounting, Grand Opening advertising, and miscellaneous start-up items. This amount can vary with each store depending on what improvements are provided by the landlord. Many new shopping centre developers offer only a bare shell and it is up to the franchisee to put in the floor, ceiling, wiring, etc. These cost are above the estimated amount listed above and the costs are often offset by free rent.

 The investment further provides for:

• the use of Cody Party Centre's name, trademarks and reputation
• benefits of our collective experience, business expertise and advice
• design and layout of the new store
• preparation of initial product inventory
• marketing and advertising advice for initial store promotion
• preparation of initial product inventory
• extensive training to acquaint new franchisees with our product lines and concept, including administration
• access to volume buying power and aggressive promotions

Cody Party strives to ensure the success of every franchise long before a franchise agreement is executed and a new store planned. Projected operational expenses and sales can vary considerably with the management skills of a new franchisee, location and other variables. For these reasons, Cody Party Centre does not guarantee that a new store will reach these annual sales. As part of our selection process, prospective franchisees will receive our Disclosure Document which include actual blind financial statements of stores.

Cody Party Center will always look at ways to help a new qualified partner finance a new store. The Business Development Bank of Canada offers great startup and working capital loans for this type of opportunity. Your local chartered bank also offer Small Business loans which are secured by the Federal Government for new business startups.

The information provided below can help you get infomed or to get started on any financing information with the Business Development Bank of Canada. and about the Small Business Loan Program.

Downloadable file

Posted Oct 1, 2008 Business Development Bank of Canada

Posted Oct 1, 2008 Business Development Bank of Canda

Business Development Bank of Canada

Canada Small Business Financing Program