factual

What build-out expense example is provided that could affect the initial investment for a Burros Fries franchise?

Burros_Fries Franchise · 2024 FDD

Answer from 2024 FDD Document

The total estimated initial investment is an estimate only of the range of startup expenses you may incur. We relied on our principals' combined experience when preparing these figures. The actual amount of funds you will need depends on a variety of factors, including the size of your facility, the location of your Business, build-out expenses (for example if you choose to install a gas deep fryer and a hood), the time of year when you open your Business, the amount of kitchen equipment, products and supplies you purchase, how many employees you hire, implementation of a marketing plan, your own management skill, economic conditions, competition in your area and other factors.

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, the build-out expenses can vary significantly based on whether a franchisee chooses to install a gas deep fryer and a hood. This is explicitly mentioned as a factor influencing the total initial investment. The document emphasizes that the actual amount of funds needed will depend on several factors, including the size and location of the facility, build-out expenses, the time of year the business opens, the amount of kitchen equipment and supplies purchased, the number of employees hired, the implementation of a marketing plan, the franchisee's management skill, economic conditions, and competition in the area.

Furthermore, the FDD notes that the cost per square foot for a typical Burros Fries location in a shopping center, mall, or free-standing building is estimated to be approximately $3 to $5. These figures do not include common area maintenance fees or sums for purchasing real property. The document advises franchisees to find a space needing minimal leasehold improvements or fixtures, but acknowledges that interior alterations are typically necessary. The costs for these alterations can vary widely depending on the condition of the property and the extent of the required changes.

Additionally, the inclusion of a drive-through facility is presented as an optional addition that can significantly impact build-out expenses. The estimated expenditure for a drive-through facility ranges from $10,000 to $20,000, and this cost is not included in the initial total investment estimate. The document recommends considering a drive-through as an important aspect of sales, but it is not mandatory. These factors highlight the importance of carefully evaluating all potential build-out costs and consulting with a business advisor to develop accurate cash flow projections before investing in a Burros Fries franchise.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.