What is the method of payment for Furniture, Fixtures and Equipment for a Bang Cookies bakery 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) | $75,000 – $150,000 | As arranged | As incurred | Contractors, suppliers, and/or Landlord |
| Lease Deposits – Three Months | $15,000 – $40,000 | As arranged | As incurred | Landlord |
| (Note 3) | ||||
| Furniture, Fixtures and Equipment | $176,370 – $224,020 | As arranged | As incurred | Suppliers |
| (Note 4) | ||||
| Signage (Note 5) | $15,000 – $25,000 | As arranged | As incurred | Us, Suppliers |
| Computer, Software and Point of | $3,000 – $3,000 | As arranged | As incurred | Suppliers |
| Sales System (Note 6) | ||||
| Grand Opening Marketing (Note 7) | $10,000 – $20,000 | As arranged | As incurred | Suppliers |
| Initial Inventory (Note 8) | $5,000 – $10,000 | As arranged | As incurred | Us, Suppliers |
| Utility Deposits (Note 9) | $1,500 – $2,000 | As arranged | As incurred | Suppliers |
| Insurance Deposits – Three | $500 – $1,000 | As arranged | As incurred | Insurers |
| Months (Note 10) | ||||
| Travel for Initial Training | $3,500 – $7,500 | As arranged | As incurred | Airlines, hotels, |
| (Note 11) | restaurants | |||
| Professional Fees (Note 12) | $2,000 – $7,500 | As arranged | As incurred | Attorneys, accountants, architects, advisors |
| Technology Implementation Fee | $1,500 - $3,000 | As arranged | As incurred | Us |
| Licenses and Permits (Note 13) | $2,000 – $4,000 | As arranged | As incurred | Government |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–24)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the method of payment for Furniture, Fixtures, and Equipment is "as arranged" and is due "as incurred" with suppliers. The estimated cost for Furniture, Fixtures, and Equipment for a Bang Cookies Bakery location ranges from $176,370 to $224,020.
This "as arranged" payment method means that the specific payment terms will be determined through negotiations between the franchisee and the suppliers of the furniture, fixtures, and equipment. This could involve various arrangements, such as installment plans, financing options, or other negotiated terms. The "as incurred" timing indicates that payments will be due as the expenses are incurred, likely during the setup and build-out phase of the Bang Cookies shop.
For a prospective Bang Cookies franchisee, this means they should be prepared to negotiate payment terms with suppliers and have a plan for managing these expenses as they arise. Given the significant cost range, franchisees should carefully consider their financing options and negotiate favorable payment schedules to manage their initial investment effectively. It is also important to note that the costs for furniture and fixtures may differ depending on the material quality and on other factors, such as the size of the shop.