What is the estimated range for construction and leasehold improvements for a Bang Cookies franchise?
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 construction and leasehold improvements ranges from $30,000 to $70,000 for a Bakery Location and $75,000 to $150,000 for a Multi-Unit Development Agreement. These costs cover the construction, construction management, and build-out of the Bang Cookies shop, but do not include furniture, fixtures, and equipment. The estimates assume that the location has existing, functional heating/cooling systems, essential lighting, electrical outlets, lavatories, a finished ceiling, walls prepared for painting, and a concrete slab floor.
For a Bakery Location, the typical square footage ranges from 1,800 to 3,000 square feet, with 600 to 700 square feet dedicated to back-of-house operations, including a kitchen, storage, and service lines. The Bakery Location must have complete dough production capabilities, including specialized mixers and cooking equipment. The FDD notes that third-party financing may be available for qualified candidates for some of the leasehold improvement costs; however, such financing comes with associated costs and fees.
It's important to note that these are only estimates, and the actual costs may vary based on factors such as the size of the shop, local market conditions, and the existing build-out of the location. The estimates also do not include architectural fees or other fees charged by licensed professionals other than general contractors and licensed tradesmen, nor do they include any special heating, cooling, or ductwork required by the shop. Prospective franchisees should carefully review these estimates with their business, accounting, and legal advisors before making any decisions.