When is the Construction and Leasehold Improvements expenditure due for a Bang Cookies satellite location?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | |
|---|---|---|---|---|
| Initial Franchise Fee (Note 1) | $55,000 | Lump sum | When Franchise Agreement is signed | Us |
| Construction and Leasehold Improvements (Note 2) | $30,000 - $70,000 | As arranged | As incurred | Contractors, suppliers, and/or landlord |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–24)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the expenditure for Construction and Leasehold Improvements for a satellite location, which ranges from $30,000 to $70,000, is due as incurred. This means that payments to contractors, suppliers, and/or the landlord are made as the construction and improvements progress.
This "as incurred" payment schedule is common in franchise construction projects. It means the franchisee will need to manage cash flow carefully to ensure funds are available at each stage of the build-out. Franchisees should maintain open communication with their contractors and suppliers to understand their payment schedules and avoid potential delays due to lack of payment.
Prospective Bang Cookies franchisees should factor this into their financial planning, ensuring they have sufficient capital to cover these costs as they arise during the construction phase. It is also advisable to obtain detailed quotes and payment schedules from all contractors and suppliers to budget accurately and avoid unexpected expenses.