What is the estimated cost range for furniture, fixtures, and equipment 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 |
| Architect & Engineering | $7,500 - $15,000 | As arranged | As incurred | Architect & Engineer |
| Lease Deposits and Rent – Three | $10,000 - $30,000 | As arranged | As incurred | Landlord |
| Months (Note 3) | ||||
| Furniture, Fixtures and | $89,370 - $115,190 | As arranged | As incurred | Suppliers |
| Equipment (Note 4) | ||||
| Signage (Note 6) | $5,000 – $18,500 | As arranged | As incurred | Suppliers |
| Computer, Software, and Point of | $2,000 – $2,000 | As arranged | As incurred | Suppliers |
| Sale System (Note 7) | ||||
| Grand Opening Marketing (Note 8) | $5,000 – $10,000 | As arranged | As incurred | Suppliers |
| Initial Inventory (Note 9) | $3,000 - $5,000 | As arranged | As incurred | Us, suppliers |
| Utility Deposits (Note 10) | $700 – $1,500 | As arranged | As incurred | Suppliers |
| Insurance Deposits – Three | $500 – $1,000 | As arranged | As incurred | Insurers |
| Months (Note 11) | ||||
| Travel for Initial Training (Note 12) | $3,500 – $7,500 | As arranged | As incurred | Airlines, hotels, restaurants |
| Professional Fees (Note 13) | $1,000 – $4,000 | As arranged | As incurred | Attorneys, accountants, architects, advisors |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–24)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the estimated cost for furniture, fixtures, and equipment for a Satellite Location ranges from $89,370 to $115,190. This investment covers essential items like ovens, mixers, shelve warmers, reach-in freezers, coffee brewers, espresso machines, and computer equipment, which franchisees must purchase from Bang Cookies, its approved manufacturers, or suppliers, adhering to their specifications. These costs are estimates and can vary based on material quality and the size of the shop. The listed costs do not include transportation or setup expenses, and the estimate assumes that some equipment will be leased.
Prospective Bang Cookies franchisees should note that these figures are estimates, and actual costs may fluctuate based on factors such as shop size and material quality. The FDD indicates that leasing equipment is assumed, so purchasing equipment outright could increase costs. Additionally, the estimate does not account for transportation or setup costs, which franchisees will need to budget for separately. It is important to consider that third-party financing may be available for leasehold improvements, but this will also introduce additional costs and fees.
It is crucial for potential Bang Cookies franchisees to carefully review these estimates with business, accounting, and legal advisors. Understanding all potential costs and securing appropriate financing are essential steps before committing to a franchise agreement. By thoroughly evaluating these factors, franchisees can better prepare for the financial demands of establishing a Bang Cookies Satellite Location.