9”

Frequently Asked Questions

The ideal owner candidate is outgoing, results-oriented and committed to success. You

need to be able to motivate and manage employees and have a good basic knowledge

sales experience. Owners must be willing to focus their energies exclusively on

the business.

Average initial investment is estimated to be $96,000* however, the size of your store

and necessary leasehold improvements will determine your actual start-up costs. You

must have $25,000 cash available and the ability to borrow $100,000 in capital.

*This estimate is provided only as guidance. If you choose to build your own facility, the investment necessary to

No. Sears does not collect any fees or royalties and the inventory remains under Sears

ownership, so there are no inventory costs.

number of households in the market, operating expenses, lease/real estate costs, and

your ability to manage and control the business.

Yes, but the store owner must personally devote his or her full-time and best efforts

to the day-to-day operation of the store. The owner is responsible for all employee and

approval. Market requirements and your resources will determine whether you will buy,

build or lease your facility.

continued

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10”

Initial Investment Guide

Based on our experience, the estimated start-up costs for opening a new Sears Hometown Store are described in the chart below.* We have provided average expense estimates as guidance. Actual expenses are dependent on many factors including the actual square footage, merchandise assortment and geographic location of your store.

Permitting and real estate costs, taxes etc. will vary by state and municipality.

InteriorfixturesrequiredbySears $32,000

P.O.S.,Officeequipment&furniturerequiredbySears $25,000

Leasehold improvements** $25,000

Initial insurance fees (per contract) † $ 6,000

Utility deposits $ 1,000

Initial permits and fees † $ 500

Start-up travel and training $ 1,500

Legal and professional fees $ 1,500

Miscellaneous $ 3,500

INITIAL INVESTMENT $96,000

Plus Recommended Operating Capital*** 3 to 6 months reserves

STORE OPPORTUNITIES AVAILABLE

Opening a store of your own

Prospective owners who wish to open a new store must have $25,000 cash available and the ability to borrow $100,000

in capital. The actual amount of available cash needed will be determined after consultation with the Sears Development

Team Representative.

Buying an existing store

Established Sears Hometown Stores are available for purchase through existing owners. Negotiations and agreements

topurchaseanexistingstorearesolelybetweentheownerandprospectivebuyer.However,Searsmustfirstgrantthe

candidateapproval,basedontheirqualificationstoownandoperateaSearsHometownStore.Qualificationswillbe

determined during the recruitment evaluation process.

* Sears provides this chart in order to give you major categories of expenses necessary to estimate your initial expenses. This chart is intended to assist you in performing your own investigation. Your actual financial results are likely to differ from the information outlined in this chart. Actual results vary from unit to unit and Sears cannot estimate the expenses of any particular Hometown Store.

** Determined by location selected.

*** Operating capital is defined as cash reserves to cover occupancy, payroll, insurance and utilities expenses.

† Requirements and Fees vary by state

Average Expense

32,000

23,000

25,000

6,000

900

500

1,500

1,500

3,500

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