Does the cost of Furniture, Fixtures, and Equipment for a Desi District franchise vary based on the model?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
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- The Furniture, Fixtures and Equipment includes the front of house furniture and fixtures, design elements and the back of house kitchen equipment to operate the restaurant business. These expenses will vary greatly depending on whether you invest in the Eatery or the Eatery and Market model.
| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made | |
|---|---|---|---|---|---|
| Furniture, Fixtures, and Equipment (see Note 6) | $120,000 - | $240,000 | Check, debit, and/or credit | As incurred | Vendors and suppliers |
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- The Franchise Fee is due and payable at the time of executing the Franchise Agreement. Your lease security deposit and utility deposits will usually be refundable unless you owe money to the landlord or utility provider. None of the other expenditures in this table will be refundable. Neither we nor any affiliate finances any part of your initial investment. Each of these investment ranges varies depending on the type of franchise model you invest in. The Eatery model is a smaller footprint and operates as only a restaurant business. The Eatery and Market Model is a combination of restaurant and grocery business and requires a larger footprint and as a result more of an investment to open. In this Item 7, the lower end of the investment range generally accounts for the Eatery model and the higher end of the range of investment accounts for the Eatery and Market model.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–26)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, the cost of Furniture, Fixtures, and Equipment (FFE) varies depending on the franchise model chosen. The FDD specifies two models: the Eatery model and the Eatery and Market model. The Eatery model is a smaller restaurant-only business, while the Eatery and Market model combines a restaurant with a grocery business, requiring a larger space and greater investment.
The estimated initial investment for Furniture, Fixtures, and Equipment ranges from $120,000 to $240,000. The lower end of this range typically applies to the Eatery model, while the higher end corresponds to the Eatery and Market model. This difference reflects the additional furniture, fixtures, and kitchen equipment needed to operate the larger Eatery and Market concept.
Prospective Desi District franchisees should carefully consider which model best fits their financial capabilities and business goals. The choice between the Eatery and the Eatery and Market model will significantly impact the initial investment required, particularly for Furniture, Fixtures, and Equipment. Understanding these differences is crucial for accurate financial planning and ensuring the franchisee has sufficient capital to launch their Desi District franchise successfully.