What is the estimated low and high range for deposits for a Burneys Sweets More franchise?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF EXPENDITURE | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS MADE | |
|---|---|---|---|---|---|
| LOW | HIGH | ||||
| PRE-OPENING COSTS1 | |||||
| Initial Franchise Fee | $20,000 | $20,000 | Lump sum | Due on signing Franchise Agreement | Us |
| Inventory2 | $8,800 | $27,500 | Vendor terms | Within 0 - 30 days of order | Approved vendors |
| Lease3 | $22,000 | $82,500 | Landlord terms | Monthly, depending on lease agreement | Landlord |
| Leasehold Improvements and Fixtures4 | $22,000 | $300,000 | Lump sum or (possibly) amortized by landlord | Varies depending on your contract with supplier | Supplier or Landlord |
| Furnishings | $1,100 | $20,000 | As incurred | Varies depending on your contract with supplier | Approved suppliers |
| Signage | $880 | $8,800 | As incurred | Varies depending on your contract with supplier | Approved suppliers |
| TYPE OF EXPENDITURE | AMOUNT LOW | HIGH | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS MADE |
| Equipment and Smallwares5 | $55,000 | $154,000 | As incurred | Varies depending on contract with supplier | Approved supplier |
| Point of Sale | $1,500 | $1,899 | As incurred | Monthly | Approved |
| System6 | supplier | ||||
| Deposits7 | $440 | $2,200 | Lump sum | Usually before opening | Landlord, utili- ties, phone co. |
| Insurance8 | $3,300 | $5,500 | As incurred | Varies depending on contract with supplier. | Approved supplier |
| Business Licenses | $28 | $330 | As incurred | Varies depending on jurisdiction | Local, state, federal government; approved vendors |
| Training living expenses | $1,650 | $4,400 | As incurred | Before opening | Air travel, hotels, meals, incidentals |
| Grand Opening Marketing9 | $550 | $2,750 | These expenditures commence on an as incurred basis as early as 60 days’ prior to the opening of your Shop and will continue through the first 30-60 days of operation | As incurred | Suppliers |
| Brand Fund Fee— 3 months | 0.5% of monthly Gross Sales | 1.5% of monthly Gross Sales | Paid monthly in lump sum | EFT | Us |
| Royalty | 3% of monthly Gross Sales | 5% of monthly Gross Sales | Paid monthly in lump sum | EFT | Us |
| TYPE OF EXPENDITURE | AMOUNT LOW | HIGH | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS MADE |
| Local Advertising | 1% of monthly Gross Sales | 1% of monthly Gross Sales | As incurred; At least 1% of your Gross Sales must be spent on local advertising monthly; the value of products given away counts towards this requirement. | As incurred | Vendors |
| Additional Funds – 3 months (Working Capital) 10 | $22,000 | $55,000 | As incurred | As incurred | Vendors, suppliers, utilities |
| TOTAL | $159,248 | $684,879 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–20)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, the estimated initial investment for deposits ranges from $440 to $2,200. These deposits are paid as a lump sum, typically before opening the Burneys Sweets More shop, and are made payable to the landlord, utilities, and phone company. Note 7 in Item 7 clarifies that this estimate specifically includes utility deposits and fees.
These deposits cover expenses like utility hookups and security deposits for the leased space. The lower end of the estimate likely applies to smaller spaces in rural areas, while the higher end is for larger spaces in more urban locations, as these factors can influence the deposit amounts required by landlords and utility companies. It is important to note that the FDD advises prospective franchisees to ask their leasing agent or landlord about their refund policy before signing a lease agreement, as these deposits may or may not be refundable.
Prospective franchisees should budget accordingly and confirm deposit amounts with local landlords and utility providers during their due diligence. Understanding the specific deposit requirements for their chosen location is crucial for accurate financial planning. These deposits are part of the overall initial investment and contribute to the total capital needed to start a Burneys Sweets More franchise.