To whom do I pay for construction and leasehold improvements 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) |
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 estimated cost for construction and leasehold improvements for a satellite location ranges from $30,000 to $70,000. These payments are made 'as incurred' to contractors, suppliers, and/or the landlord. This means that as the construction progresses and expenses are incurred, you will need to arrange payments with the relevant parties.
It's important to note that this estimate covers the cost of construction, construction management, and build-out, but it excludes furniture, fixtures, and equipment. The estimate assumes the satellite location will be between 275 and 850 square feet and that the site has existing interior improvements like heating/cooling, lighting, electrical systems, lavatories, a finished ceiling, prepared walls, and a concrete floor. The estimate also excludes architectural fees or other fees charged by licensed professionals other than general contractors and licensed tradesmen, and it does not include any special heating, cooling, or ductwork.
Prospective franchisees should be aware that 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. Bang Cookies recommends carefully reviewing these estimates with business, accounting, and legal advisors before signing a Franchise Agreement. Understanding these costs and payment arrangements is crucial for budgeting and managing the initial investment required to open a Bang Cookies satellite location.