The Toy Industry

U.S Toys and Games market sales hit $47 billion in 2009. The major "big box" toy sellers include Wal-Mart, Target, Toys "R" Us, and various warehouse clubs. However, parents are increasingly dissatisfied walking down the "pink aisles” (Barbie) or the "black aisles” (action figures) of these mass merchants, and are migrating toward a more intelligent choice in toy shopping-the specialty, independently owned, educational toy store. Here they can find a unique mix of products and superior customer service; a neighborhood toy store that serves their local market.

Initial Investment Requirements

To help you understand what it takes to own and operate a Learning Express store, we have broken down important financial information.

The Franchise Fee: $35,000  

This is a one-time fee charged to all franchisees, and covers the cost of your Learning Express Franchise License.

Lease and Leasehold Improvements: $17,000 - $70,000  

Depending on the remodeling requirements or build out of your intended location, we have estimated your initial cost to be in this range.

POS Equipment: $17,000  

Computer System: Hardware and Software Point of Sale Equipment; License Fees and Software Subscription Services.

Furniture, Fixtures, Equipment, Signage: $30,000 - $65,000  

All the necessary furniture, fixtures and equipment, to begin operation.

Organizational Costs and Training Costs: $4,500 - $7,000  

Lease expenses, utility deposits and professional fees. You will need funds for travel and lodging during our mandatory training program.

Opening Inventory: $90,000 - $150,000  

Depending on the time of year your store opens and the size of your location, the costs may vary. This is our initial inventory purchase requirement.

Grand Opening Advertising: $5,000  

This is a minimum amount of advertising costs for a successful grand opening.

Insurance: $1,000 - $6,000  

The estimated cost of insurance for the first year of operation, which is paid directly to the insurance company.

Additional Funds: $10,000 - $40,000  

You will also need funds for back up capital, permits, and pre-opening payroll costs.

Total: $209,000 - $395,000  

Tenant Allowance: ($10,000 - $50,000)  

Money the landlord may contribute to offset construction costs

Total: $199,500 - $345,000  

Minimum Financial Requirements

Personal Net Worth: $300,000  

This is an estimate of your current assets less current liabilities.

Minimum Cash Investment: $100,000  

Depending on the time of year your store opens and the size of your location, the costs may vary. This is our initial inventory purchase requirement.

Maximum Loans: $125,000