What is the total estimated initial investment range to open a Baya Bar franchise?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
| | | |
| (1) Type of Expenditure | (2) Amount | (3) Method of Payment | (4) When Due | (5) To Whom Payment is to be Made |
|---|---|---|---|---|
| Utility Security Deposit (3) | $1,500 to $5,000 | As arranged | As arranged | Landlord, Utility Companies |
| Design & Architect | $7,500 to $10,000 | As arranged | As arranged | Designer or |
| Fees (4) | Architect | |||
| Leasehold | $34,750 to $118,760 | As arranged | As arranged | Contractor |
| Improvements (5) | ||||
| Signage (6) | $8,500 to $21,000 | As arranged | As arranged | Suppliers |
| Equipment, | $28,200 to $34,300 | As arranged | As arranged | Suppliers |
| Furniture and | ||||
| Fixtures (7) | ||||
| Point of Sale & | $1,500 to $3,500 | As arranged | As arranged | Suppliers |
| Computer | ||||
| Equipment (8) | ||||
| Business Licenses (9) & Permits | $2,000 to $5,000 | As arranged | As arranged | Government Agencies |
| Professional Fees | $5,000 to $7,500 | As arranged | As arranged | Attorney, |
| (10) | Accountant | |||
| Insurance – 3 | $665 to $2,000 | As arranged | As arranged | Insurance |
| Months (11) | Companies | |||
| Initial Inventory, | $5,700 to $9,250 | As arranged | As arranged | Suppliers |
| Uniforms and | ||||
| (12) | ||||
| Office Supplies | ||||
| Training Expenses | $500 to $4,500 | As arranged | As arranged | Airline, Hotel, |
| (13) | Restaurant, etc. | |||
| Grand Opening | $2,500 to $7,500 | As arranged | As arranged | Suppliers |
| Marketing(14) | ||||
| Web & Social Media Marketing – 3 Months | $750 | As arranged | As arranged | Designated Supplier |
| Additional Funds – | $20,425 to $45,166 | As arranged | As arranged | You Determine |
| 3 Months (15) | ||||
| Total (16) | $160,990 to $340,476 |
In general, none of the expenses listed in the above chart are refundable, except any security deposits you must make may be refundable. We do not finance any portion of your initial investment. All
of our estimates assume that you will purchase the required items. Your costs may be lower if you choose to lease some items.
Notes:
-
- Initial Franchise Fee. The initial franchise fee is discussed in Item 5.
-
- Rent. Our estimates assume that you will lease space for your Franchised Business. Your Shop must be in a shopping mall, strip shopping center, or in a downtown setting, and you will need approximately 750-1,200 square feet. Landlords may vary the base rental rate and charge rent based on a percentage of gross sales.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–20)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the estimated initial investment to open a Baya Bar franchise ranges from $160,990 to $340,476. This total includes various expenditures, such as the initial franchise fee, rent, utility security deposits, design and architect fees, leasehold improvements, signage, equipment, furniture and fixtures, point of sale and computer equipment, business licenses and permits, professional fees, insurance, initial inventory, uniforms and office supplies, training expenses, grand opening marketing, web and social media marketing, and additional funds for the first three months of operation.
The initial franchise fee is $35,000. Rent for 3 months is estimated to be between $6,500 and $31,250. Utility security deposits range from $1,500 to $5,000, while design and architect fees are estimated between $7,500 and $10,000. Leasehold improvements can cost between $34,750 and $118,760, and signage ranges from $8,500 to $21,000. Equipment, furniture, and fixtures are estimated to cost between $28,200 and $34,300. Point of sale and computer equipment costs range from $1,500 to $3,500. Business licenses and permits are estimated between $2,000 and $5,000, and professional fees range from $5,000 to $7,500. Insurance for 3 months is estimated to be between $665 and $2,000. Initial inventory, uniforms, and office supplies range from $5,700 to $9,250. Training expenses are estimated between $500 and $4,500, and grand opening marketing costs range from $2,500 to $7,500. Web and social media marketing for 3 months is $750. Additional funds for 3 months range from $20,425 to $45,166.
It is important to note that these are only estimates, and the actual costs may vary depending on factors such as the location, size, and condition of the premises, as well as the franchisee's management skills and local economic conditions. The FDD advises that none of the expenses listed are refundable, and Baya Bar does not offer financing for any portion of the initial investment. A prospective franchisee should carefully consider these factors and seek professional advice before making a decision.