To whom do I pay for construction and leasehold improvements 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's 2024 Franchise Disclosure Document, the cost for construction and leasehold improvements, which ranges from $75,000 to $150,000, is paid to contractors, suppliers, and/or the landlord. These costs are "as arranged" and "as incurred," meaning you'll need to negotiate payment schedules with these parties as the construction progresses. This estimate covers the construction, construction management, and build-out of a Bang Cookies shop, but it excludes furniture, fixtures, and equipment.
The FDD notes that the estimate assumes a Bakery Location will be between 1,800 and 3,000 square feet. It also assumes the site is delivered with pre-existing heating/cooling systems, essential lighting, electrical outlets, lavatories, a finished ceiling, prepared walls, and a concrete slab floor. The estimate does not include architectural fees or other fees charged by licensed professionals other than general contractors and licensed tradesmen, nor does it include any special heating, cooling, or ductwork required by the shop.
Prospective franchisees should be aware that the actual costs for developing a Bang Cookies shop may be higher or lower than the estimates provided in the FDD. Factors such as the size of the shop, local market conditions, and the existing build-out of the location can influence these costs. It is crucial to carefully review these estimates with business, accounting, and legal advisors before making any decisions.