FAQ

  • Q: How much is the franchise fee?
    • A: $25,000 plus H.S.T.
  • Q: How much are royalty fees?
    • A: Royalties are 6% of net sales and are paid monthly.
  • Q: What do you look for in a franchisee?
    • A: A self-motivated, team player, who believes in participating and leveraging strength of a recognizable Brand and is prepared to offer exceptional customer service.
  • Q: Do I have to find my own location?
    • A: We have an in-house Real Estate department that will locate suitable sites.
  • Q: Where do I buy merchandise to stock my store?
    • A: Our franchisees purchase merchandise from an approved group of vendors using a proprietary computer system.
  • Q: What kind of training can I expect?
    • A: Our training program is a combination of both classroom and hands-on, in-store training.
  • Q: What kind of ongoing store support can I expect?
    • A: The Franchise Support Office provides guidance and facilitates proven solutions for bottom line success.
  • Q: How secure is my personal information which I provide on the Confidential Application?
    • A: Extreme Retail Canada Inc. complies with all legal standards in accordance with PIPEDA.
  • Q: How much will I have to invest?
    • A: The estimated investment required for a franchise varies depending on the square footage of the store. Please refer to the chart below to calculate your estimated investment:
ESTIMATED STORE COSTS
FRANCHISE FEE $25,000 PLUS TAXES
LEASEHOLDS $5 TO $25 / SQ FT
FURNISHINGS & FITTINGS $12 TO $16 / SQ FT
INVENTORY $23 TO $28 / SQ FT

Financial Commitment

Understanding the financial commitment is extremely important to the Franchisee/ Franchisor. The following list briefly outlines what you need to know about our franchise opportunity.

Getting Started

  • A Franchise Fee of $25,000 is charged at the commencement of the 5-year franchise agreement, in addition to      construction costs and the inventory.
  • The construction cost for a new store, which is determined by the size of the store, could range from $120,000 – $225,000,      or more.

You must secure your own financing. Extreme Retail Canada Inc. does not provide any financing but will assist in your loan application.

Can I Include Assets Held Outside of Canada?

Your assets must be in Canada and you must be able to provide appropriate documentation to substantiate all assets.

What is my Return on Investment?

We cannot predict the ROI of any store as there are many variables that can affect the success of a business. Furthermore, in some provinces, we are bound by legislative restrictions which hinder our ability to provide financial forecasts or make any form of income claim. Accordingly, we provide no representations or projections of revenues, costs or return on investment.

What is the Break-Even Point?

As noted above we make no income claims and each applicant must conduct their own due diligence. We do encourage all applicants to perform a thorough review and to seek professional assistance in this regard.

Once Opened and Operating

As part of your Franchise Agreement, each store is required to pay the following fees:

  • 6% Royalty fee;
  • 1% National Advertising fee, this fee is currently not      called for and will only become payable if we embark on a national      advertising campaign.

The Royalty fee is calculated as a percentage of net sales and payable monthly.


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