Franchise Costs



1. Initial Franchise Fee.
See Item 5 of this Disclosure Document. BRAXTON INDEPENDENT ASSOCIATES may offer financing
for up to $17,000.00 of the initial franchise fee for qualified Franchisees. The chart does not show
the effect of financing the initial franchise fee, i.e., that your initial, minimum payment would be
less than the full $29,500, with the balance of the initial franchise fee payable, together with interest,
in equal monthly installments over a period of up to two years, as explained in Item 10 of this
Disclosure Document. See Item 5 for the conditions under which this fee is refundable.
The initial franchise fee is fully refundable if you fail to complete the initial training
program to our satisfaction. (See Item 11 of this Disclosure Document for a description of the
initial training program.) However, we do not refund any portion of the initial franchise fee if you
fail to complete the initial training program due to your failure or refusal to attend such training
(provided BRAXTON INDEPENDENT ASSOCIATES offers the initial training program within 90 days after we
execute the Franchise Agreement.) Upon completion of the initial training program, the initial
franchise fee is not refundable under any condition. Other than for failure to complete the training
program the initial franchise fee is non-refundable. For further discussion of the Franchisor and
Franchisee’s rights and obligations on termination, see Item 17 entitled “Renewal, Termination,
Transfer and Dispute Resolution.”
2. Rent.
Rent will vary depending upon the location, condition and size of the franchised office. We
estimate the sum of $ 0.00 to $3,000.00 as one month’s rent. This estimate includes all of the
continuing charges typically payable to the owner of the real estate for one month, e.g., monthly
rental, taxes, insurance, maintenance and other occupancy expenses. The estimate is based upon a
300 square foot franchised office. BRAXTON INDEPENDENT ASSOCIATES imposes only minimum
specifications for the design and appearance of your office facility. As noted in Items 8 and 9 of the
Disclosure Document, you have 6 months from the date of the Franchise Agreement in which to
open an office in the Area. A security deposit of two months rent is included in this estimate. The
Minimum estimate applies for up to the first 6 months following execution of the Franchise
Agreement when you may operate the BRAXTON® Franchise out of a suitable home office. It
assumes you have an office facility in your home at the time the Franchise Agreement is signed and
therefore assumes no incremental cost for rent to establish the home office.
3. Utility Security Deposits.
Certain utilities (electric, gas, telephone) may require security deposits in advance of
providing services. These estimates are included.
4. Other Pre-Paid Expenses, Licenses.
Governmental regulations may require various permits and licenses as either isolated or
recurring expenditures. Typical of these permits and licenses are those from labor departments,
sales tax bureaus and other similar state or local governmental agencies. In addition, as noted in
Item 1 of this Disclosure Document, state law may require that you, at a minimum, be duly licensed
as a “professional engineer” in order to render Consulting Engineering Services. We anticipate that
most Franchisees will have the requisite professional licenses when they purchase the
BRAXTON® franchise and therefore will not incur any additional expense for this item in
connection with their purchase of the franchise. Compliance with such licensing requirements is a
condition of the BRAXTON® franchise. Government authorities determine fees to obtain
required licenses and permits and you pay them directly as required.
5. Leasehold Improvements, Fixtures and Equipment including Computer Systems
We impose only minimal specifications for leasehold improvements to the franchised office,
fixtures (such as signage) and furnishings. The specifications are described in the Confidential
Operating Manual. The cost of leasehold improvements, fixtures and equipment depends upon the
size of the franchised office, the nature and extent of any repair work required, the local cost of
construction work and the location of the franchised office. An office must be equipped, at a
minimum, with the following equipment: a computer operating in the Windows XP Pro or
greater environment and Microsoft Office 2003 or greater software, an e-mail address, fax
machine and separate fax line, a digital camera and CD burner. Of this amount, the estimated
cost associated with the purchase of the specified office equipment is $2,500. You may already
possess certain equipment. In addition, leasing of furniture and equipment may be a desirable
strategy to minimize initial capital outlay.
6. Insurance.
You must procure and maintain throughout the term of the Franchise Agreement insurance
of the types and amounts described in Item 8 and 9 of this Disclosure Document. The cost of
insurance will vary based on policy limits, type of policies procured, geographic location, and other
related factors. The figures cover insurance deposits made prior to opening. They include a
$500.00 deposit paid to the BRAXTON® reserve account for errors and omissions insurance and
initial payments for business liability and other insurances.
7. Training.
You are responsible for travel, food, and lodging in excess of the amounts specified, other
personal expenses and salary costs for yourself and your employees who attend the initial training
program described in Items 6 and 11 of this Disclosure Document. Training is provided at our
offices in Portland, Maine. We invite you and an unlimited number of your supervisory employees
to attend. The above estimates assume one representative will attend. BRAXTON INDEPENDENT ASSOCIATES
provides up to 10 nights lodging, a per diem of up to $20.00 for meals, plus a travel allowance of up
to $300 to offset the cost of travel for training. You must bear all personal expenses in excess of
these amounts and all personal expenses incurred by your employees who do attend such training
program, including meals, lodging and transportation, and salary expenses. In our experience,
employees generally do not attend the initial training.
8. Advertising.
Before your first use or distribution, you must submit to us for written approval, samples of
all promotion, marketing and advertising materials and descriptions of local promotional programs
that you propose to use, that we have not previously approved. If we have not notified you of our
disapproval within 15 days from the date of receipt of such information, the materials are
considered approved.
You may not advertise or use in advertising or any other form of promotion any of the
Marks without appropriate copyright and registration symbols or the designations ®, TM or SM
where applicable, applied in accordance with our instructions.
You must maintain a dedicated business telephone number and listing in the Classified or
Yellow Pages telephone directory or directories which cover your assigned area of primary
responsibility (See Item 12 of this Disclosure Document) under the name of the Franchised
Consulting Engineering Business and under such other names as BRAXTON INDEPENDENT ASSOCIATES may
designate using advertisements which BRAXTON INDEPENDENT ASSOCIATES approves in advance.
9. Printing.
Before beginning operations, you must purchase supplies as prescribed in the Confidential
Operating Manual. Such items include stationery, business cards, brochures and related paper
items. Included in the franchise fee are an initial supply of 2,000 letterhead sheets, 4,000 second
sheets, 3,000 business cards, and 2,000 brochures. You may choose to purchase additional
10. Opening Inventory and Supplies.
Before beginning operations, you must purchase miscellaneous office supplies and certain
tools related to the business, identified in the Confidential Operating Manual.
11. Legal and Professional Fees.
You may incur certain legal, accounting and/or other professional fees in establishing the
Franchised Consulting Engineering Business, including business formation and accounting services.
Actual amounts may vary depending upon the local cost of such services, nature and type of
professional services required and other related factors.
You are not our agent, and, therefore, you must indemnify and hold BRAXTON
ENGINEERS harmless against any and all claims arising directly or indirectly from or pertaining to
the operation of the Franchised Consulting Engineering Business, as well as all costs and attorney’s
fees we incur in defending against such claims and in enforcing the indemnification provision. You
are an independent contractor and must take such actions in order to communicate this fact to all
third parties, including customers and suppliers.
12. Additional Funds – for First 6 Months.
The chart shows additional start-up funds that may be required for the first 6 months of
operation. These expenses include payroll costs, insurance, promotion and transportation costs.
These figures are estimates and BRAXTON INDEPENDENT ASSOCIATES cannot guarantee that you will not have
additional expenses in starting the business. Your costs will depend on factors such as: how much
you follow BRAXTON INDEPENDENT ASSOCIATES’ methods and procedures, your management skill,
experience and business acumen, local economic conditions, the local market for our services, the
prevailing wage rate, competition, and the sales level reached during the initial period.
The Minimum level reflects a sole proprietor working from a home office. It includes costs
for sales and promotion, phone, postage, auto expenses and related professional expenses. The
Maximum level reflects the immediate addition of office staff, rental of office space, and a more
aggressive promotional effort.
Neither the maximum nor minimum level of expenses make any assumptions of a salary
that you may draw during the first 6 months of operations. Although you may draw a salary, we
anticipate that you will channel some or all revenue into the business. The chart does not take into
account any money which you might need for personal living expenses during this period.
13. Area Development Fee
When you sign the Area Development Agreement, you must pay Franchisor an Area
Development Fee. The Area Development Fee is equal to $1,000 multiplied by the number of
BRAXTON INDEPENDENT ASSOCIATES Franchises to be established in the Development Area. You also must
pay Franchisor the full amount of the then-current Franchise Fee for the first BRAXTON
ENGINEERS Franchise you open. For each subsequent BRAXTON INDEPENDENT ASSOCIATES Franchise you
open under your Area Development Agreement you will pay a Franchise Fee, which is calculated in
the same manner as the Franchise Fee being charged to new franchisees, at the time you sign each
subsequent Franchise Agreement. After your first BRAXTON INDEPENDENT ASSOCIATES Franchise is opened
and operating, you will receive a credit of $1,000 toward the payment of each subsequent Franchise
Fee. The Area Development Fee is nonrefundable once paid. See Item 5 of this Disclosure
Document for additional information regarding the Area Development Fee.
14. Vehicle
This figure represents the estimated cost per month for a vehicle. The minimum estimated
amount assumes you already have a vehicle. The maximum amount represents the estimated cost
per month to lease a vehicle.
15. Total.
All fees paid to BRAXTON INDEPENDENT ASSOCIATES are non-refundable, except as outlined in Items
5 and 6 of this Disclosure Document. Fees paid to a third party may be refundable, depending upon
the arrangement and contracts, if any, made between such third party and the Franchisee.
The preceding projections are estimates of the total initial investment required of a
BRAXTON® Franchisee. Many of the expenses shown in the chart may not be incurred by you
for several months after signing the Franchise Agreement, during which time you may nevertheless
be able to operate the Franchised Consulting Engineering Business from your home and develop
and service a clientele and generate revenue.
Minimum expenses reflect the projected least capital outlay required to establish a
BRAXTON® Franchise business. Variables, some of which are within your control, others of
which are not, contribute to the estimate of Maximum Expenses.
Offices converting from the Predecessor Company’s “Home Inspection Consultants” system
do not incur an initial franchise fee or initial expenses to join the BRAXTON® System.
BRAXTON INDEPENDENT ASSOCIATES relied on its experience and that of the predecessor
company to compile these estimates. You should review these figures carefully with a business
advisor before deciding to purchase the franchise.

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