What does a franchise cost?

Although it is easy to get distracted by gazing at, smelling and tasting all the incredible cookies, we know that this is really about business…so the next thing is to let you know what it costs to open a Cookies By George store.  So let us get to the “Numbers”.

You should know that every potential location is unique, and although the cost of some of the items listed below are precise, other costs can only be estimated. 

As well, sometimes the particular circumstances of a location or a landlord may require additional types of costs, such as leasing or agency charges.

Equipment needs may vary from store to store and lease to lease, but our “numbers” are based on a full compliment of new equipment.

Finally, these numbers are subject to change due to inflationary and location factors.

So what we have done here is provide estimates covering the normal scenarios plus some additional costs that may be encountered:

Franchise fee (for a 5-10 year term):$25,000 to $40,000
Cost of equipment and utensils:$45,000 to $55,000
Cost of building the store:$155,000 to $220,000
Opening inventory:$10,000 to $15,000
Leasing / real estate / development costs:$10,000 to $20,000
Estimated total cost:$245,000 to $350,000

In addition, we require that, to cover cash requirements during the period immediately, prior to, and after store opening, the Franchisees have available pre-opening cash of $10,000.

Once opened and operating, our Franchisees are currently required to pay, throughout the term of the Franchise:

Royalties6.0%
Advertising Fund2.0%

*These fees are calculated as a percentage of “gross sales” and are payable at the end of each month*

We require a successful applicant to demonstrate that they have at least the entire Franchise Fee plus 50% of the total cost of building and equipping a store available in unencumbered cash…the balance may be financed.  And although we do not participate as a lender, we can assist you with your loan application

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