Franchise Initial Investment

INITIAL INVESTMENT

Nature of Investment Estimate of Costs Method of Payment
When Due To Whom
Made
Refund-ability
Initial Franchise Fee

(Note 1)

$ 25,000 Two Installment Payments 1st Installment upon signing of Franchise Agreement The Company None
Initial Rent & Deposit

(Note 2)

$ 2,666-

$ 10,000

As Arranged As Arranged Lessor None
Initial Inventory

(Note 3)

$ 4,000-

$ 5,000

As Arranged As Arranged Vendors None
Leasehold Improvements

(Note 4)

$ 100,000-

$250,000

As Arranged As Arranged Vendors None
Signage

(Note 5)

$ 4,000-

$ 5,000

As Arranged As Arranged Vendors None
Equipment, Furniture & Fixtures

(Note 6)

$ 40,000-

$ 70,000

As Incurred As Incurred Vendors None
Initial Marketing

(Note 7)

$ 5,000 Over first 60 days As Incurred Vendors None
Pre-Opening Salaries

(Note 8)

$ 5,000-

$ 7,000

Management salaries hourly As Incurred Employees None
Insurance

Deposits

(Note 9)

$ 1,000-

$ 1,500

As Incurred As Incurred Insurance

Companies

None
Permits, Licenses & Fees

(Note 10)

$ 200-

$ 500

As Incurred As Incurred Government

Agencies

None
Architectural Fees

(Note 11)

$ 8,000-

$ 15,000

As Incurred As Incurred Architect None
Computer Hardware, Software & POS System

(Note 12)

$ 8,000-

$ 15,000

 

As Incurred As Incurred Vendors None


 

Nature of Investment Estimate of Costs Method of Payment When Due To Whom Made Refund-ability
Office Equipment & Supplies

(Note 13)

$ 200-

$ 400

As Incurred As Incurred Vendors None
Change Fund

(Note 14)

$ 360 Lump Sum As Incurred Self None
Décor Items

(Note 15)

$ 1,000-

$ 1,800

As Incurred As Incurred Vendors None
Printing

(Note 16)

$ 500-

$ 750

As Incurred As Incurred Vendors None
Travel - Initial Training

(Note 17)

$ 0-

$ 3,000

$ 100.00 a day per person As Incurred Vendors None
Start-Up Supplies

(Note 18)

$ 150-

$ 200

As Incurred As Incurred Vendors None
Uniforms and Marketing Materials

(Note 19)

$ 100-

$ 500

As Incurred As Incurred Vendors None
Utility Deposits

(Note 20)

$ 0-

$ 500

As Incurred As Incurred Utility Companies None
Legal & Accounting Fees

(Note 21)

$ 750-

$ 1,500

As Incurred As Incurred Vendors None
Telephone System

(Note 22)

$ 500-

$ 750

As Incurred As Incurred Vendors None
Security System

(Note 23)

$ 12,000-

$ 13,000

As Incurred As Incurred Vendors None
Service Fee

1st 3 Months

(Note 24)

$400 per week for months 1-3 with periodic increases Weekly Bank Draft Payment Upon opening restaurant The Company None
Local Advertising Fee

(Note 25)

4% of Monthly Gross Revenues As Incurred As Incurred Vendors None

 

Nature of Investment Estimate of Costs Method of Payment When Due To Whom Made Refund-ability
Additional Funds

(Working Capital)

(Note 26)

$ 15,000-

$ 30,000

As Incurred As Incurred Vendors None

Total Initial Investment $225,000 to $435,000 plus Additional Funds (Working Capital) of $15,000 to $30,000. Because the Local Advertising Fees are based on Gross Revenues, the dollar amount will vary from Franchised Location to Franchised Location. Therefore, the Service Fees and Local Advertising Fees are not included in the Total Initial Investment.

 

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