When is the Lease Deposits and Rent 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 |
| 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's 2024 Franchise Disclosure Document, lease deposits and rent for a satellite location are due 'as incurred.' This means that the franchisee will need to pay these costs as they come up during the process of securing and setting up their Bang Cookies shop.
The estimated initial investment for lease deposits and rent for three months ranges from $10,000 to $30,000. This payment is made to the landlord. Note 3 clarifies that this estimate assumes the lease deposit will equal three months of rent payments. The franchisee will negotiate the lease terms directly with the landlord. The typical square footage for a Satellite Location ranges from 275 to 850 square feet.
It's important to note that 'as incurred' means these payments will likely be spread out over time, rather than being due all at once. However, franchisees should be prepared to have these funds available when the expenses arise. Prospective franchisees should carefully review these estimates with their business, accounting, and legal advisors before making any decision to sign a Franchise Agreement.