What down payment should I expect if I finance furniture, fixtures, and equipment for my Carls franchise?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
r required building permits, impact fees, taxes, bonds, licenses and other fees, which can vary dramatically depending on the location. There may also be off site costs, such as intersection improvements or street widening that where required have a major impact on costs.
- (8) You must purchase certain items of furniture, fixtures, equipment, including point of sale system, and smallwares. You may be able to lease from or finance through a third
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 31–36)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, franchisees may be able to finance the purchase of furniture, fixtures, and equipment through a third party. However, Carls states that franchisees should expect to make a down payment of up to 25% of the financed amount. This includes items such as the point-of-sale system and smallwares.
For a prospective Carls franchisee, this means that if you plan to finance a portion of these essential items, you need to budget for a down payment. The actual amount will depend on the financing terms you negotiate with the third-party lessor or lender. It's important to consider this down payment as part of your initial investment and ensure you have sufficient capital available.
It is also important to note that the cost to install a catalytic converter for the charbroiler, if required, is approximately $1,558. This cost may be included in the overall financing package, so it's essential to clarify with the vendors and financing company what is covered and what is not. Reviewing these figures with a business advisor is recommended by Carls before making any decisions to purchase the franchise.