Costs

Start Up Costs

Floor Stores offers three new store options, with each option having different start up and ongoing costs. Which option you invest into will depend on a number of factors including how much the upfront costs are that you have budgeted for, the location of the store and how much working capital is required. All costs shown are to open and start trading and are a guide only, and include licence fees, bank guarantee, rental bonds, working capital, store set up costs, initial marketing costs etc.

Standard

Upfront Investment $160,000 – $175,000 which includes basic store set up in a B grade location, with no more than a 150m2 showroom with no warehouse attached. Usual location is in a set of strip shops or standalone location perhaps on a secondary main road.

Benefits:
  • Lower monthly rent
  • Lower rental bond
  • Lower working capital required
  • Less store set up costs including signage, in-store flooring and displays racks
  • Trade 6 days a week

Premium

Upfront Investment $225,000 – $250,000 which includes store set up in an A grade location like a homemaker centre. Minimum 250m2 of floor space which may or may not include an onsite warehouse.

Benefits:
  • Good parking options for customers
  • Exposure to other like-minded businesses in the home renovation space
  • Generally busy shopping hubs which attracts customers
  • Great signage options
  • Centre wide advertising campaigns
  • Spacious and inviting showroom which provides great exposure to your new business from day one
  • 7 days a week trading
  • On-site warehouse is a great advantage as well

Modular

Upfront Investment $50,000 – $100,000 which includes basic store set up in your current business location, with displays utilising a minimum 30m2 of your current showroom space.

Benefits:
  • No additional rent
  • No additional wages and other overheads – cross train your existing team
  • Potential for increased sales for your existing business and products
  • Combined advertising and marketing costs
  • Potential customers already know your location and reputation

Compared to other franchise systems, your initial entry cost into the Carpet Call or Solomons Flooring Franchise system is extremely low. This allows franchisees to maintain their capital for other important aspects of the business, like positive cash flow, adequate working capital, local promotion and advertising.

The low start-up costs include:

  • Once off initial licence fee
  • Basic store set up – utilising existing supplier displays, sampling, basic signage, flooring
  • New store marketing campaign
  • e-Invoicing and digital enhancement packages
  • Bank guarantee to secure trading debt

Other costs/finances will vary depending on which store option is chosen, the location of the store and other fees and charges by third party suppliers/advisors:

  • Rental bond
  • Working capital
  • Legal and business advice
  • Training costs like travel/accommodation – allow up to 2-4 weeks training but this will depend on competency. It could be less or it could be more

Ongoing Costs

At Floor Stores, our model doesn’t rely on ongoing marketing and royalty payments, meaning you can grow your business without having to pay huge royalty fees, potentially saving tens of thousands of dollars every year.

The low on-going costs include:
  • After an initial royalty period, there are no ongoing royalties
  • There is no marketing fee. We do expect our franchisees to invest in advertising their business, but this is done in collaboration with the franchisor and with other franchisees in built up markets
  • There is only a $5,000 franchise renewal fee every 5 years