OVERVIEW AND COST BREAKDOWN

Opening a CHICKANO business will require start-up capital. The capital can be raised in many ways:

! Personal Cash: If you have it available this is the easiest way to go. ! Loan: Loans can come from a variety of places. Family, friends, banks, other

financial institutions, and the government can all provide the necessary financing.

! Private Investors: The Franchisee may seek out private investors that take an ownership stake (‘equity’ stake) in the Franchisee’s business. Giving up a portion of the company can prove to be a smart decision for a Franchisee as purchasing an equity stake does NOT require repayment to the investor. The private investor takes a percentage of the earnings each period instead.

! Home Equity: Do you own property? Has it risen in value? You can re-mortgage your property to take out the increase in value of your home (called equity). The increase in the mortgage payment is often cheaper than securing a conventional loan.

From a recent store that CHICKANO constructed, the start up costs were: KIOSK RESTAURANT Franchise Fee 20,000 40,000 Rental 3,000 20,000 Renovation 40,000 200,000 Equipment 30,000 150,000 Signage 5,000 20,000 Insurance, Legal 5,000 5,000 Opening Inventory 5,000 10,000 Working Capital 10,000 50,000 Total Investment 118,000 495,000 * Costs can exceed or come under estimates above depending on location, site specifics, and contractors. * Currency is base on RM/SGD