What is the estimated range for lease deposits for three months for a Bang Cookies bakery location?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Note 3: Lease Deposits – Three Months – You must operate your Bang Cookies Shop from a Shop Location that we approve and complies with state and local laws. If you do not already own or lease a suitable location you will be required to lease a location that meets our standards and is approved by us. This estimate is based on the assumption that you will be leasing your Bang Cookies Shop Location and is for the estimated amount of the initial lease deposit that you will be required to pay to the landlord at the time of signing your lease and before opening your Shop. The estimate is based on the assumption that your lease deposit will be equal to three months of rent payments. The estimate is based on the assumption that your lease deposit will be equal to three months of rent payments. The typical square footage for a Bakery Location ranges from 1,800 to 3,000 square feet, for a Satellite Location ranges from 275 to 850 square feet. The amount of your lease deposit is something that you will directly negotiate with the landlord and will vary significantly based on a number of factors that include location and your own negotiations. This estimate does not include the purchase of real property should you elect to purchase the real property of your Shop Location.
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 lease deposit for a Bang Cookies shop is an estimated amount for the initial lease deposit required to be paid to the landlord when signing the lease and before opening the shop. The FDD notes that the estimate assumes the lease deposit will be equal to three months of rent payments.
The typical square footage for a Bang Cookies Bakery Location ranges from 1,800 to 3,000 square feet. The document states that the amount of the lease deposit is something that the franchisee will directly negotiate with the landlord. The lease deposit will vary significantly based on factors that include location and the franchisee's own negotiations.
Because the lease deposit amount is based on the monthly rent, and the monthly rent is not specified in the FDD, there is no specific range for the estimated lease deposit. A prospective Bang Cookies franchisee should speak with the franchisor to understand what typical rents are for various locations to better understand the potential initial investment for a Bang Cookies franchise.