We are proud to say that HALLMARK CANADA does not charge any initial upfront franchise fee, royalty fee or marketing fees under its current franchise system.
Listed below is an estimated range of the initial investment costs for a newly constructed Hallmark Gold Crown store in Canada. Actual costs will vary based on a number of factors like market forces, store size, geographic location, Hallmark's design criteria, to name a few. The estimated costs below will also vary for an existing store.
ESTIMATED INITIAL INVESTMENT *
|APPROXIMATE INITIAL INVESTMENT COSTS
|Plus Estimated Working Capital
|APPROXIMATE TOTAL INVESTMENT REQ'D
A cash investment of at least one-third of the Approximate Initial Investment Costs is required in unencumbered liquid funds.
SUMMARY OF ESTIMATED INITIAL INVESTMENT *
Includes permanent and temporary seasonal fixtures for product displays, as well as additional components for non-Hallmark product gift fixtures, in-store signing, stockroom, etc.
Opening Inventory ***
Inventory is divided into three main categories.
Everyday Products - Includes product like greeting cards, gift wrap, stationery, albums and party ware that are not tied to a specific "season" or holiday.
Seasonal / Holiday Products - Includes product like greeting cards, boxed cards, Keepdake ornaments, gifts and gift wrap that are related to a specific "season" or holiday.
Non-Hallmark Products - Includes gift product that is purchased through an optional venue or program, which offers help with order planning, credit guarantees on initial orders and, in many cases, discounts that may not be available elsewhere.
Leasehold Improvements **
Includes all elements necessary to completely finish the leased premises, including, but not limited to, carpeting, electrical, plumbing, lighting, track lighting, interior walls, special ceiling treatments, sprinkler systems and exterior signing.
Includes cash registers, point-of-sale equipment, pricing machines, calculators, business and accounting systems, etc.
Includes miscellaneous costs to cover the likes of insurance coverage, deposits on utilities, retail license fees, store installation costs, introductory advertising, promotional costs, lease review fees, store design, construction fees, commercial leasing consultant fees and travel expenses for training, etc.
Approximate Initial Investment Costs
The total of the above items in the Estimated Initial Investment.
In addition to the above estimated initial investment, require a cash reserve equal to a suggested four (4) months worth of store's operating expenses, like minimum rent, additional rent, utilities, payroll, taxes, inventory restocking, etc.
Approximate Total Investment Required
The approximate cumulative total of the above which are estimates only.
* These estimated initial investment costs are for information purposes only and should not be taken as a true representation whatsoever. Actual costs will or will not exceed the costs shown.
** Depends on the negotiated terms of the lease
*** Inventory costs vary with store size and inventory mix. Seasonal / holiday product costs are dependent on the time of year the store opens.