What does Burros Fries advise regarding leasehold improvements for a new location?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
nditions of your lease.
Note 4: We advise you to find a space needing minimal leasehold improvements or fixtures. In most cases you will need to alter the interior of your Business before you open for operation. The costs will vary widely and may be significantly higher than what is projected in the table above depending on factors such as the condition of the property and the extent of alterations required for the property. The high estimate reflects the potential need to construct a drive-through facility. We highly recommend you make use of a drive-through as part of your facilities, as it is an important aspect of your sales. In addition, we assume that your landlord will provide connections to adequate
electrical, gas, water and sewage service and your landlord may provide tenant improvement allowances. We base our estimates on the costs that our affiliates incurred when building out their locations. You should investigate all these costs in the area in which you wish to establish a Burros & Fries Business. We will provide you with standard layouts and design options for your Business; however, it is your responsibility to hire an architect to create a complete set of drawings based on the size of your facility and local permitting requirements. Architect and permitting costs are not included in this estimate. Whether or not any leasehold improvements or build-out expenses are refundable depends on the terms and conditions of your contracts you're your contractors, as well as your lease agreement (Franchise Agreement Sections 12.S and 12.T).
Note 5: You must purchase products and supplies for the general operation of your Business as specified in the Operations Manual. You must purchase only approved products and supplies, and you must purchase products and supplies that meet our specifications, which may change from time to time. All products and supplies must be purchased through us, our affiliates or approved vendors and/or suppliers, except all advertising and promotional materials and miscellaneous forms must be purchased directly from us. Whether or not any of the purchases for products and supplies are refundable depends on the terms of the invoice or purchase agreement with suppliers (Franchise Agreement Sections 12.I and 20.I).
Note 6: You must purchase and maintain an inventory of approved uniforms for the operation of your Business. All uniforms must meet our specifications, which may change from time to time.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 16–21)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, Burros Fries advises franchisees to find a location that needs minimal leasehold improvements or fixtures. The FDD notes that in most cases, franchisees will need to alter the interior of their business before opening. These costs can vary widely and may be significantly higher than projected, depending on the condition of the property and the extent of alterations required. The high estimate reflects the potential need to construct a drive-through facility, which Burros Fries highly recommends as an important aspect of sales.
The FDD estimates leasehold improvements to range from $300,000 to $450,000, payable before opening to the landlord. Burros Fries also notes that a typical business is in a shopping center, mall, or free-standing building, with costs estimated at approximately $3 to $5 per square foot, not including common area maintenance fees. These real estate costs depend on factors such as location, size, visibility, economic conditions, accessibility, and competitive market conditions.
Prospective franchisees should investigate all costs in the area where they wish to establish a Burros Fries business. Burros Fries will provide standard layouts and design options, but the franchisee is responsible for hiring an architect to create a complete set of drawings based on the facility size and local permitting requirements. Architect and permitting costs are not included in the estimated initial investment. Whether leasehold improvements or build-out expenses are refundable depends on the terms and conditions of contracts with contractors and the lease agreement.