What is the range of estimated construction and build-out costs for an Auntie Annes franchise?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
ed by us and/or the Co-Branded Franchisor. All other fees will be charged by (x) us or the Co-Branded Franchisor, but not both or (y) jointly by both us and the Co-Branded Franchisor (and split between the two of us).
ITEM 7. ESTIMATED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT: FULL SHOP
| Type of Expenditure | Amount of Expenditure | | Method of Payment | When Payments Are | To Whom Payment Will | |---------------------------------------------------------------|-----------------------|-----------|-------------------|-----------------------------------------|-------------------------| | | Low | High | Fayineiit | Due | Be Made | | Initial Franchise Fee 1 | $35,500 | $35,500 | Lump sum | At signing of Franchise Agreement | Us | | Construction and Build Out Costs 2 | $27,000 | $265,000 | As incurred | As arranged | Contractors | | Permitting 3 | $2,000 | $4,000 | As incurred | Before opening | Government agencies | | Equipment Package 4 | $21,000 | $64,500 | Lump sum | Before opening | Vendors | | Millwork 5 | $5,000 | $28,000 | As incurred | Before opening | Contractors | | Furniture 6 | $0 | $2,500 | As incurred | Before opening | Vendors | | Menu Board, | $250 | $23,000 | As incurred | Before opening | Vendors | | Graphics, and Interior | | | | | | | Signage 7 | | | | | | | Exterior Signage 8 | $3,000 | $8,300 | Lump sum | Before opening | Vendors | | Computer System 9 | $7,400 | $27,400 | As incurred | Before opening | Vendors | | Smallwares 10 | $1,000 | $7,000 | As incurred | Before opening | Vendors | | Architect/Engineer 11 | $2,000 | $13,000 | As incurred | Before opening | Architect | | Rent 12 | $2,000 | $10,000 | Monthly | As arranged | Lessors |
| Type of Expenditure | Amount of I | Expenditure | Method of | When Payments Are | To Whom Payment Will |
|---|---|---|---|---|---|
| Low | High | Payment | Due | Be Made | |
| Grand Opening | $2,500 | $7,500 | As incurred | Before opening | Vendors or |
| Marketing 13 | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 44–54)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the estimated cost for construction and build-out ranges from $27,000 to $265,000 for a Concession Shop and from $195,000 to $400,000 for a Full Shop. These costs are paid to contractors as the work is completed.
The FDD notes that these costs encompass fees paid to a general contractor to build the shop according to Auntie Annes's standards, including HVAC, electrical work, carpentry, flooring, and painting. The document emphasizes that the cost of a general contractor can fluctuate significantly based on factors such as the size and condition of the premises, existing leasehold improvements, the extent and quality of desired improvements, landlord contributions, and local material and labor costs. The document also notes that costs could be significantly higher in major metropolitan markets such as Boston, Chicago, New York, Los Angeles, San Francisco, Seattle, and Washington, D.C.
Prospective franchisees should carefully consider these factors and obtain detailed quotes from contractors in their target location to develop a realistic budget. The possibility of negotiating tenant improvement allowances from the landlord is also mentioned, with the low estimate assuming an allowance of $2,500 based on franchisee reports. The high estimate assumes no tenant improvement allowance is available. Understanding these variables is crucial for accurately estimating the initial investment required to open an Auntie Annes franchise.