Dune Holdings Group has two financial models for its franchisees:
1. Traditional Franchise Model
Initial Franchise Fee $50,000
Initial Investment $250K to $500K
Monthly Royalty Fee 5% of Gross Sales
Participating Monthly Ad Fee 2% of Gross Sales
***
Participating Monthly Ad Fee 2% of Gross Sales
Monthly Royalty Fee** 5% of Gross Sales
Five Yr Balloon $Balance of Loan
DHG Finance $6,500 - $10,000 Per/Mo.
20% of calulated Sales price* Est. $200K to $300K+
2. Turnkey "Equity Earnout Rollover - Finance &
Franchise Agreement ("ERFA")
FRANCHISE
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A
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Capital & Fee Requirement
Dune Holdings Group also acquires select existing stores and converts them into DuneBerry Resort Wear stores and
Franchises them on either of the two models above.
* Typically 4.5X EBITDA **10-Yr Term *** DHG has relationships and resources with third-party funding sources favorable
to franchising DuneBerry Resort Wear stores
The DuneBerry proven business model is a store of 1,500 SF, however can be up to 2,000+ SF (which is our Pinehurst model). The store can be operated with a staff of three full-time or two full-time and two part-time people. Our earnings vary from store to store based on many factors (size, sales per sq. ft., inventory turn, etc.) however, like the saying, its not what you gross, its what you keep that's important...our typical store operation has an EBITDA (Earnings before interest, taxes, depreciation and amortization) of 21.5%, so a DuneBerry store grossing $1,000,000 (as an example) will have an EBITDA of $215,000 ($1.5M = $322,500 and $2M = $430K).
Capital & Fee Requirement