For a Carls franchise, what do the site improvement costs include?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
- (6) Site improvement costs include all required work to provide fill and compaction, curb cuts, parking lot curbs and gutters, sidewalks, drive thru lanes, landscaping and irrigation, site electrical and lighting, grease interceptor and utility runs. See Note 7 with respect to off-site costs.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 31–36)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, site improvement costs for a new franchise include a comprehensive range of work necessary to prepare the location. These costs cover providing fill and compaction to ensure a stable base, constructing curb cuts for accessibility, and installing parking lot curbs and gutters for proper drainage. The improvements also encompass the construction of sidewalks and drive-thru lanes to facilitate customer access and traffic flow.
Furthermore, site improvement costs for Carls include landscaping and irrigation to enhance the aesthetic appeal of the location and maintain greenery. The costs also cover site electrical and lighting installations to ensure adequate illumination and functionality. A grease interceptor, which is essential for managing waste from the restaurant, and utility runs for water, gas, and other services are also included in these site improvement costs.
Prospective Carls franchisees should note that these site improvement costs can range from $110,000 to $605,000, as detailed in the Item 7 table. These costs are paid to a contractor in progress payments as arranged. Additionally, the FDD advises franchisees to check with relevant regulatory agencies to identify potential off-site costs, such as intersection improvements or street widening, which can significantly impact the overall expenses.