Date post: | 24-Mar-2016 |
Category: |
Documents |
Upload: | kyle-morey |
View: | 212 times |
Download: | 0 times |
9”
Frequently Asked Questions
The ideal owner candidate is outgoing, results-oriented and committed to success. You
need to be able to motivate and manage employees and have a good basic knowledge
sales experience. Owners must be willing to focus their energies exclusively on
the business.
Average initial investment is estimated to be $96,000* however, the size of your store
and necessary leasehold improvements will determine your actual start-up costs. You
must have $25,000 cash available and the ability to borrow $100,000 in capital.
*This estimate is provided only as guidance. If you choose to build your own facility, the investment necessary to
No. Sears does not collect any fees or royalties and the inventory remains under Sears
ownership, so there are no inventory costs.
number of households in the market, operating expenses, lease/real estate costs, and
your ability to manage and control the business.
Yes, but the store owner must personally devote his or her full-time and best efforts
to the day-to-day operation of the store. The owner is responsible for all employee and
approval. Market requirements and your resources will determine whether you will buy,
build or lease your facility.
continued
942619_faq.indd 1 12/22/10 3:01:22 PM
10”
Initial Investment Guide
Based on our experience, the estimated start-up costs for opening a new Sears Hometown Store are described in the chart below.* We have provided average expense estimates as guidance. Actual expenses are dependent on many factors including the actual square footage, merchandise assortment and geographic location of your store.
Permitting and real estate costs, taxes etc. will vary by state and municipality.
InteriorfixturesrequiredbySears $32,000
P.O.S.,Officeequipment&furniturerequiredbySears $25,000
Leasehold improvements** $25,000
Initial insurance fees (per contract) † $ 6,000
Utility deposits $ 1,000
Initial permits and fees † $ 500
Start-up travel and training $ 1,500
Legal and professional fees $ 1,500
Miscellaneous $ 3,500
INITIAL INVESTMENT $96,000
Plus Recommended Operating Capital*** 3 to 6 months reserves
STORE OPPORTUNITIES AVAILABLE
Opening a store of your own
Prospective owners who wish to open a new store must have $25,000 cash available and the ability to borrow $100,000
in capital. The actual amount of available cash needed will be determined after consultation with the Sears Development
Team Representative.
Buying an existing store
Established Sears Hometown Stores are available for purchase through existing owners. Negotiations and agreements
topurchaseanexistingstorearesolelybetweentheownerandprospectivebuyer.However,Searsmustfirstgrantthe
candidateapproval,basedontheirqualificationstoownandoperateaSearsHometownStore.Qualificationswillbe
determined during the recruitment evaluation process.
* Sears provides this chart in order to give you major categories of expenses necessary to estimate your initial expenses. This chart is intended to assist you in performing your own investigation. Your actual financial results are likely to differ from the information outlined in this chart. Actual results vary from unit to unit and Sears cannot estimate the expenses of any particular Hometown Store.
** Determined by location selected.
*** Operating capital is defined as cash reserves to cover occupancy, payroll, insurance and utilities expenses.
† Requirements and Fees vary by state
Average Expense
32,000
23,000
25,000
6,000
900
500
1,500
1,500
3,500
942619_Investment_Guide.indd 1 12/22/10 3:04:52 PM