Definition:
Item 7 in a Franchise Disclosure Document (FDD) breaks down the estimated startup costs for a new franchise. It shows what you’ll likely spend to get your CoolVu business up and running. These costs include things like equipment, inventory, insurance, and working capital for the first few months.
Use It in a Sentence:
Before opening her CoolVu franchise, Lisa reviewed Item 7 in the Franchise Disclosure Document (FDD) to understand the total upfront costs.
Why Is Item 7 Important?
If you’re thinking about joining the CoolVu franchise family, Item 7 helps you plan your budget wisely. It outlines what you need to invest before and just after you open your doors. This includes everything from signage to supplies to training.
Knowing these numbers helps avoid surprises. You’ll have a clearer picture of what’s expected from day one. Plus, you can plan how much cash you’ll need on hand to keep things running smoothly until revenue starts coming in.
CoolVu uses Item 7 to show transparency. It helps build trust by giving future owners the full financial picture before they commit. When you understand the real costs, you can make smarter choices and avoid overspending.
Keep in mind—Item 7 is an estimate. Costs may vary a little by location or other factors, but it’s a helpful guide to get started.
Related FDD Dictionary Terms:
- Franchise Disclosure Document (FDD) – Legal summary.
- Item 1 in FDD: Identifies ownership, location, and business ties.
- Item 2 in FDD: Shows leadership experience behind the brand.
- Item 3 in FDD: Lists legal history and potential risks.
- Item 4 in FDD: Discloses past bankruptcies for review.
- Item 5 in FDD: Upfront startup fees listed.
- Item 6 in FDD: Lists ongoing fees for operating the franchise.
- Item 8 in FDD: Lists supplier rules and product standards.
- Item 9 in FDD: Lists franchisee duties and responsibilities.
- Item 10 in FDD: Explains franchisor financing and loan options.
- Item 11 in FDD: Lists franchisor training, tools, and support.
- Item 12 in FDD: Explains territory rights and restrictions.
- Item 13 in FDD: Lists trademarks and legal protections.
- Item 14 in FDD: Covers patents, copyrights, proprietary info.
- Item 15 in FDD: Explains owner’s operational role.
- Item 16 in FDD: Lists what franchisees can sell.
- Item 17 in FDD: Renewal, transfer, & ending agreements rules.
- Item 18 in FDD: Shows public figures’ roles and ties.
- Item 19 in FDD: Shows sales numbers and earnings data.
- Item 20 in FDD: Tracks openings, closings, and transfers.
- Item 21 in FDD: Shows audited financial statements.
- Item 22 in FDD: Lists all required franchise contracts.
- Item 23 in FDD: Confirms receipt and starts 14-day wait.
