To whom do I pay for lease deposits and rent for a Bang Cookies satellite 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, lease deposits for a Bang Cookies shop, whether a Bakery Location or a Satellite Location, are paid directly to the landlord. The FDD states that if you do not already own or lease a suitable location, you will need to lease one that meets Bang Cookies' standards and is approved by them.
The amount of the lease deposit is something that you will directly negotiate with the landlord. The lease deposit amount can vary significantly based on factors such as the location of the shop and your negotiation skills. The FDD estimates the lease deposit to be equal to three months of rent payments.
For a Satellite Location, the typical square footage ranges from 275 to 850 square feet, which is smaller than a Bakery Location. This difference in size can influence the rent and, consequently, the lease deposit. It is important to note that the estimate provided by Bang Cookies does not include the purchase of real property, should you elect to purchase the location for your shop. Therefore, all lease deposits and rent payments are made directly to the landlord, as negotiated in the lease agreement.