Is the total estimated initial investment for Burros Fries a guaranteed amount?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
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
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, the total estimated initial investment is not a guaranteed amount. The FDD states that the total estimated initial investment is only an estimate of the startup expenses a franchisee may incur.
The actual amount of funds needed can vary based on factors such as the size and location of the facility, build-out expenses (especially if installing a gas deep fryer and hood), 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. The estimate is based on an owner-operated business or incorporating operations within an existing business and does not include salaries or benefits for full-time employees.
The FDD explicitly states that these figures are estimates and Burros Fries cannot guarantee that costs will not be higher. Competitive conditions described in Item 1 of the FDD can also affect these costs. The costs also do not include royalties and system advertising fees, which begin immediately once the business is open. Prospective franchisees are advised to review the figures carefully with a business advisor and identify their individual expenses and cash flow projections before deciding to buy a franchise.