Must the kitchen equipment, furnishings, and fixtures meet specific specifications for a Burros Fries franchise?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Note 2: This is an estimate for the items you will need for kitchen equipment, furnishing and fixtures. You must purchase various used or new pieces of kitchen equipment for the operation of your Business as specified in the Operations Manual. The kitchen equipment you will need to operate your Business includes, but is not limited to commercial grade refrigerators, commercial grade freezers, microwave, toaster ovens, beverage dispensers, and a three-compartment sink. The furnishings and fixtures necessary to operate your Business include but are not limited to tables, chairs, stools, counters, hostess stand, fabricated stainless steel worktables, filing systems, one beverage display refrigerator, shelving, cabinets, storage racks and one small safe for the operation of your Business. The low end of the estimate given is based on opening a 1,350 sq. foot facility and the high end of the estimate is based on opening a 2,800 sq. foot facility. Actual kitchen equipment, furniture and fixture costs may vary due to the square footage of your facility. Sales tax is charged separately by each state and is not included in these estimates. Sales tax may range from three percent (3%) to ten percent (10%) of the purchase price and are not included in these estimates. You are responsible for paying all applicable sales taxes. You must lease or purchase all kitchen equipment, furnishing and fixtures from us, our affiliates or our approved vendors and suppliers. In addition, you must lease or purchase all kitchen equipment, furnishings and fixtures that meet our specifications, which may change from time to time. The cost of all kitchen equipment, furnishing and fixtures will depend on financing terms available, the condition of the kitchen equipment, furnishing and fixtures and other factors. You may be able to take advantage of tax benefits for the lease or purchase of all your kitchen equipment, furnishing and fixtures as you are encouraged to talk with a tax professional. Expenses for the kitchen equipment, furniture and fixtures do not include shipping or delivery costs and may or may not be refundable depending on the terms of your invoice, lease agreement or purchase agreement.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 16–21)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, franchisees must ensure that all kitchen equipment, furnishings, and fixtures meet the franchisor's specifications, which are subject to change. Franchisees are required to either lease or purchase these items from Burros Fries, its affiliates, or approved vendors and suppliers.
The FDD outlines the estimated initial investment for kitchen equipment, furniture, and fixtures ranging from $120,000 to $160,000. This estimate varies based on the facility's size, with the lower end representing a 1,350 sq. ft. facility and the higher end representing a 2,800 sq. ft. facility. The necessary kitchen equipment includes commercial-grade refrigerators and freezers, microwaves, toaster ovens, and beverage dispensers. Furnishings and fixtures encompass tables, chairs, stools, counters, and shelving.
Prospective franchisees should note that the actual costs may fluctuate depending on the size of the facility, financing terms, and the condition of the equipment. Sales tax, which can range from 3% to 10% of the purchase price, is not included in these estimates. Additionally, shipping and delivery costs are separate and may not be refundable, depending on the specific terms of the purchase or lease agreement.
Given these requirements, it is crucial for potential Burros Fries franchisees to carefully review the Operations Manual and consult with the franchisor to understand the current specifications and approved vendors. This will help in accurately budgeting for the initial investment and ensuring compliance with Burros Fries's standards.