What does the Burros Fries working capital estimate include?

According to the 2024 Burros Fries Franchise Disclosure Document, the working capital estimate includes the minimum funds required to start the business. It also covers miscellaneous startup costs. These include rent for an additional two months (beyond the first month's rent already accounted for), shipping and delivery expenses, and the purchase of additional products and supplies.

The working capital also accounts for hiring additional staff and workman's compensation insurance payments, if applicable. Furthermore, it includes costs for additional permits and other miscellaneous expenses that may arise during the initial phase of the Burros Fries business.

It is important to note that these figures are estimates, and Burros Fries cannot guarantee that franchisees will not incur higher costs. Factors such as competitive conditions, as described in Item 1 of the FDD, can influence these costs. The estimate 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.

Prospective franchisees should carefully review these estimates with a business advisor and identify their individual expenses along with cash flow projections before deciding to purchase a Burros Fries franchise. Franchisees should also consider that royalties and system advertising fees are not included in these costs and begin immediately once the business is open.