What is the highest amount Ben Jerrys franchisees can expect to spend on Leasehold Improvements & Construction?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 7 ESTIMATED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT
ESTIMATED EXPENDITURES FOR FULL-SIZED SHOPS (APPROXIMATELY 750-1200 SQ.FT)
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Preliminary Agreement Deposit1/ | $5,000 - $10,000, to be credited towards initial franchise fees | Lump Sum | Upon Signing | Us |
| Initial Franchise Fee2/ | $8,000 (for a Satellite Addendum); $19,750 to $39,500) for a Franchise Agreement) | Lump Sum | Upon Signing | Us |
| Plans, Development & Permits3/ | $3,500 to $12,000 | As Arranged | As Incurred | Design Firm, City and State Licensing Authority |
| Leasehold Improvements & Construction4/ | $85,000 to $230,000 | As Arranged | As Arranged | Contractor |
| Furniture, Fixtures, Equipment, Casework, and Smallwares5/ | $65,000 to $135,000 | As Arranged | As Incurred | Vendors |
| Signage6/ | $5,000 to $17,500 | As Arranged | As Incurred | Vendors |
| Professional Fees7/ | $3,000 to | As | As Arranged | Attorney, |
| $6,000 | Arranged | Accountant, etc. | ||
| POS8/ | $1,800 to $2,300 | As Arranged | Prior to Installation | Suppliers or Us (as payment agent) |
| Online Ordering System Hardware | $1,000 to $1,500 | As Arranged | Prior to installation | Suppliers or Us (as payment agent) |
| Internet Connectivity, | $1,000 to | As | Prior to | Suppliers and |
| and Telephone8/ | $1,500 | Arranged | Installation | Vendors |
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
| ----------------------------------- | --------------------------- | ---------------------- | ------------- | --------------------------------------------------------------------- |
| Deposits9/ | $3,000 to $8,000 | As Arranged | As Incurred | Landlord, Vendors, Utility Providers |
| Initial Training10/ | $1,000 to $3,000 | As Arranged | As Incurred | Vendors |
| Inventory11/ | $8,000 to $14,000 | As Arranged | As Incurred | Vendors, Distributors, Suppliers |
| Insurance12/ | $500 to $2,500 | As Arranged | As Arranged | Insurers |
| Grand Opening | $3,000 | As | As Incurred | Suppliers |
| Advertising13/ | Arranged | |||
| Additional |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 28–37)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the estimated initial investment for leasehold improvements and construction ranges from $85,000 to $230,000 for a Franchise Agreement. This figure represents the highest potential expenditure in this category. These costs are paid to a contractor and are arranged as needed during the construction phase.
It's important to note that this range applies to a standard Scoop Shop. The FDD indicates that costs can fluctuate based on factors such as the shop's size, the condition of the leasehold, local financing costs, labor expenses, material costs, and local building ordinances. Areas with high costs, such as major cities, metropolitan areas, tourist destinations, and coastal regions, may experience significantly higher expenses. Union labor requirements or specific design elements can also increase these costs.
Prospective Ben Jerrys franchisees should carefully consider these factors and conduct thorough due diligence to estimate their potential leasehold improvement and construction costs accurately. Consulting with experienced contractors and local experts is advisable to obtain realistic quotes and understand any specific requirements or challenges in their chosen location.