On what experience did Burros Fries rely when preparing the estimated initial investment figures?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
ts and other miscellaneous costs.
Total Estimated Initial Investment. 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. The estimate of initial investment funds is based on an owner-operated business; or incorporating business operations within an existing complimentary business and does not include salaries or benefits for full-time employees.
These figures are just estimates and we cannot guarantee that you will not have higher costs. Competitive conditions described in Item 1 will affect these costs. These costs do not include your Royalties and System Advertising fees which begin immediately once your Business is open for operation. These costs should be included
in your projections of overall operations costs beginning with your first month of operation. We acknowledge that you may choose to invest additional funds into your Business during the first three (3) months of operation, and sometimes longer, but we cannot estimate or promise when, or whether, any franchisee will achieve positive cash flow or profits You should review the figures carefully with a business advisor and identify your individual expenses along with cash flow projections before making any decision to buy a franchise.
We do not offer financing, directly or indirectly, for any part of the initial investment for a Franchise.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 16–21)
What This Means (2024 FDD)
According to Burros Fries' 2024 Franchise Disclosure Document, the estimated initial investment figures are based on the combined experience of the company's principals. The total estimated initial investment is only an estimate of the startup expenses a franchisee may incur. The actual amount needed can vary based on factors such as the size and location of the facility, build-out expenses (especially if a gas deep fryer and hood are installed), 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.
The FDD notes that the estimate is based on an owner-operated business or incorporating the business operations within an existing complimentary business. It does not include salaries or benefits for full-time employees. Burros Fries also states that these figures are estimates, and they cannot guarantee that costs will not be higher. Competitive conditions described in Item 1 of the FDD can also affect these costs.
Prospective franchisees should carefully review these figures with a business advisor and identify their individual expenses along with cash flow projections before deciding to buy a franchise. The FDD acknowledges that franchisees may choose to invest additional funds into the business during the first three months of operation, or even longer, but Burros Fries cannot estimate or promise when, or whether, any franchisee will achieve positive cash flow or profits.