Minimum Qualifications - Financial Estimates

Your initial investment will consist of the costs summarized on the following table. None of the following costs is refundable, either in whole or in part, except as expressly described.

Minimum Qualifications - Financial Notes

1. These estimated expenditures are based on a fleet of 100 to 500 cars and cover the first 3 months of your BRAC Business' operation. All fees paid to SOCAL as a part of your initial investment are not refundable. The refund ability of fees paid to outside suppliers and third parties depends on your arrangement with them.
2. The license purchase fee is $25,000. The fee is due as specified in your SOCAL License Agreement.
3. Your BRAC Business' location will typically be in a commercial area that allows for adequate parking of cars and trucks. Leasehold improvements may include exterior site improvements, interior site improvements like floor covering, wall treatment, counters, ceilings, painting, window coverings, electrical, carpentry and related work, and contractor's fees. This expense will vary significantly depending on the size and condition of the premises of your BRAC Business. Your location must distinctly appear as a vehicle rental office, and must not share premises with another business unless otherwise approved in writing by SOCAL.
4. This figure includes items like ventilation systems, tables, chairs, booths, office equipment (such as copying and facsimile machines), phone systems, desks, filing cabinets and automation (including computer hardware and software). If you lease any of these items, this segment of the initial investment would decrease. If you finance any of these items, you will make finance payments to financial institutions you select to provide the financing. SOCAL does not offer financing to you for these purchases.
5. Signage investment may vary, depending on factors such as the amount of exposure your BRAC Business may need, local ordinances where your BRAC Business is located, and the type of building used for your BRAC Business. All signage must display proper logos and required colors. You must maintain, in a timely manner, signage paint, lighting and materials. At the minimum, your BRAC Business location must have one interior sign and one exterior sign (the largest size and type reasonably and lawfully permissible).
6. Your rent will depend on the size, condition and location of the premises where your BRAC Business is located, and the rental market demand in the area of your BRAC business.
7. Your security deposit may vary, depending on your monthly rent payments and local custom.
8. SOCAL may waive your insurance requirement if you show proof that you are permissively uninsured. If you are permissively uninsured you must adopt and maintain a program to handle claims. You must also post, at your expense, a $35,000 Financial Responsibility Deposit with the California Department of Motor Vehicles. Otherwise, your insurance deposits will vary based on your initial fleet size. .
9. This item covers the materials and supplies necessary for the day-to-day operation of your BRAC Business.
10. This item covers the travel expense you and your personnel may incur when attending the Operations Orientation training session for new BRAC Business.
11. This item covers opening costs and expenses such as utility installation and deposits, business licenses and certificates and professional fees.
12. This item reflects the estimated range of payments you would make for the first 3 months your BRAC Business operates. The purchase price of your fleet, using an estimated cost of $20,000 per vehicle, would be $2,000,000 for a 100 vehicle fleet and $10,000,000 for a 500 vehicle fleet. SOCAL expects you to finance 100% of the purchase price of your fleet, and expects that this financing will be secured by the fleet, by other assets of the BRAC Business, by your personal guarantee and, perhaps, by certain of your personal assets. You may not use your BRAC Business as security. If the fleet is financed, you will make finance payments to financial institutions you select to provide the financing.
13. This is only an estimate of the range of initial startup expenses you may incur. The actual amount of additional funds you will need depends on a variety of factors, including the size of your Territory, whether you extend credit terms to your customers, the time of year when you start your BRAC Business, your management skill, economic conditions, competition in your area, and other factors. The estimate of additional funds is based on an owner-operated BRAC Business and does not include any allowance for an owner's draw. The estimate is for 3 months. SOCAL cannot guarantee that you will not have additional expenses in starting your BRAC Business, or the amount of your expenses after this start-up period.
14. SOCAL relied on its experience in the vehicle rental business to compile these estimates . You should review these figures carefully with a business advisor before making any decision to purchase a BRAC Business.