How does the definition of 'furniture, fixtures, equipment' in Item 8 relate to the estimated initial investment for an Auntie Annes shop, as detailed in Item 7?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
| Low | High | Payment | Due | Be Made | | Initial Franchise Fee 1 | $71,000 | $71,000 | Lump sum | At signing of Franchise Agreement | Us | | Construction and | $322,000 | $503,000 | As incurred | As arranged | Contractors | | Build Out Costs 2 | | | | | |
| Type of Expenditure | Amount of | Expenditure | Method of | When Payments Are | To Whom Payment Will | |----------------------------------------------------------------|-----------|-------------|-------------|-------------------|----------------------------------------| | Type of Experience | Low | High | Payment | Due | Be Made | | Permitting 3 | $2,500 | $12,000 | As incurred | Before opening | Government agencies | | Equipment Package 4 | $60,000 | $195,000 | Lump sum | Before opening | Vendors | | Millwork 5 | $20,000 | $34,000 | As incurred | Before opening | Contractors | | Furniture 6 | $0 | $12,000 | As incurred | Before opening | Vendors | | Menu Board, | $20,000 | $22,000 | As incurred | Before opening | Vendors | | Graphics, and Interior | | | | | | | Signage 7 | | | | | | | Exterior Signage 8 | $12,500 | $56,000 | Lump sum | Before opening | Vendors | | Computer System 9 | $7,400 | $27,400 | As incurred | Before opening | Vendors | | Smallwares 10 | $8,500 | $12,000 | As incurred | Before opening | Vendors | | Architect/Engineer 11 | $8,500 | $18,000 | As incurred | Before opening | Architect | | Rent 12 | $4,000 | $10,000 | Monthly | As arranged | Lessors | | Grand Opening | $5,000 | $15,000 | As incurred | Before opening | Vendors or | | Marketing 13 | | | | | Us | | Legal and Accounting | $7,000 | $12,000 | As incurred | Before opening | Lawyers and accountants | | Fees 14 | | | | | | | Insurance 15 | $1,575 | $8,200 | As incurred | Before opening | Insurance companies | | Misc. Opening | $13,000 | $25,000 | As incurred | Before opening | Vendors | | Costs/Office | | | | | | | Supplies 16 | | | | | | | Security Deposits 17 | $0 | $15,000 | As incurred | As incurred | Utility companies; lessors | | Management Training | $0 | $4,000 | As incurred | Before opening | Us | | Program Fee 18 | | | | | | | Travel and Living | $4,600 | $6,900 | As incurred | Before opening | Airlines, | | Expenses during | | | | | hotels and | | Training 18 | | | | | restaurants | | On-Site Training | $0 | $17,000 | As incurred | Before opening | Us | | Fee 19 | | | | | | | Opening Inventory 20 | $11,000 | $14,000 | As incurred | Before opening | Vendors | | Additional Funds - 3 Months 21 | $15,000 | $54,000 | As incurred | As incurred | Us, employees, vendors, etc. | | Total Initial Investment 22, 24 | $593,575 | $1,143,500 | | | |
EXPLANATORY NOTES:
The above are estimates of a franchisee's total initial investment in one Shop. These charts do not include an estimate for the cost of opening or operating an SRU, which is an optional add-on that may be offered after you have operated your Shop. The charts should be read in conjunction with the following notes.
What This Means (2024 FDD)
Based on the 2024 Auntie Annes Franchise Disclosure Document, Item 7 details the estimated initial investment required to open an Auntie Annes shop. Several line items within this estimate relate to what would typically be considered 'furniture, fixtures, and equipment.' Specifically, the 'Equipment Package' accounts for $60,000 to $195,000 for a Full Shop, $21,000 to $64,500 for a smaller shop, and $74,000 to $140,000 for a Co-Branded shop. This package includes essential kitchen equipment and machinery that meet Auntie Annes' standards.
Additionally, 'Furniture' is listed separately with an estimated cost of $0 to $12,000 for a Full Shop, $0 to $2,500 for a smaller shop, and $0 to $2,600 for a Co-Branded shop. This covers items like tables, chairs, and office furniture. 'Millwork,' which includes cabinets and counters, ranges from $20,000 to $34,000 for a Full Shop, $5,000 to $28,000 for a smaller shop, and $20,000 to $70,000 for a Co-Branded shop. The 'Computer System' is estimated to cost between $7,400 and $27,400 across all shop types.
Furthermore, the 'Smallwares' category, encompassing items like utensils and cookware, is estimated at $8,500 to $12,000 for a Full Shop, $1,000 to $7,000 for a smaller shop, and $3,000 to $12,000 for a Co-Branded shop. The 'Menu Board, Graphics, and Interior Signage' costs $20,000 to $22,000 for a Full Shop, $250 to $23,000 for a smaller shop, and $4,000 to $14,700 for a Co-Branded shop. Finally, 'Exterior Signage' is estimated at $12,500 to $56,000 for a Full Shop, $3,000 to $8,300 for a smaller shop, and $4,100 to $20,000 for a Co-Branded shop. These figures represent the anticipated costs for franchisees to equip their Auntie Annes locations according to brand standards.
It is important to note that these are just estimates, and the actual costs may vary based on factors such as location, building codes, and specific vendor choices. Prospective franchisees should carefully review these estimates and factor in potential cost variations when planning their initial investment. Item 8 would provide more specific details on approved suppliers and required equipment, which could further clarify these costs.