What is the estimated total initial investment range to open a Desi District Eatery Only franchise?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Office Expenses (see | $500 - $1,000 | Check, debit, and/or credit | As incurred | Vendors |
| Note 10) | ||||
| Inventory (see Note 11) | $20,000 - $40,000 | Check, debit, and/or credit | Upon ordering | Our Affiliate, Vendors |
| Licenses and Permits (see Note 12) | $1,000 - $2,000 | Check | Upon application | Government |
| Dues and Subscriptions (see Note 13) | $200 - $500 | Check, debit, and/or credit | As incurred | Vendors, trade organizations |
| Professional Fees | $1,500 - $4,000 | Check, debit, and/or credit | As incurred or when billed | Professional service firms |
| (lawyer, accountant, | ||||
| etc.) (see Note 14) | ||||
| Travel, lodging and | $3,000 - $6,000 | Cash, debit or credit | As incurred | Airlines, hotels, and restaurants |
| meals for initial training | ||||
| (see Note 15) | ||||
| Additional funds (for first 3 months) (see Note 16) | $75,000 - $100,000 | Varies | Varies | Employees, suppliers, utilities |
| Total | $669,200 - $1,020,500 | This is the total estimated initial investment to open and commence operating your initial location for the first three months (as described more fully in Chart A of this Item 7). See Note 3. |
YOUR ESTIMATED INITIAL INVESTMENT - MULTI UNIT DEVELOPMENT AGREEMENT
| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| First franchise (see table above) | $669,200 - $1,020,500 | Varies | Varies | Varies |
| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Additional initial franchise fees (see Note 17) | $22,500 - $90,000 | Check or wire transfer | Upon signing the MUDA | Us |
| Business planning and miscellaneous expenses | $1,000 - $5,000 | Check | As incurred | Vendors and suppliers |
| Total | $692,700 - $1,115,500 | This is the total estimated initial investment to enter into a Multi-Unit Development Agreement for the right to own a total of 2 or 5 locations. |
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 estimated total initial investment to open and operate an Eatery Only franchise for the first three months ranges from $669,200 to $1,020,500. This investment covers various expenses, including the initial franchise fee, rent and lease security deposit, utilities, leasehold improvements, market introduction program, furniture, fixtures, and equipment, computer systems, insurance, and signage.
Prospective franchisees should note that the initial franchise fee ranges from $30,000 to $30,000, with payment due upon signing the franchise agreement. Rent and lease security deposits are estimated to be between $5,000 and $30,000, while utilities range from $1,000 to $5,000. Leasehold improvements, which constitute a significant portion of the investment, are projected to cost between $390,000 and $520,000. The market introduction program is estimated at $5,000 to $10,000, and furniture, fixtures, and equipment costs range from $120,000 to $240,000.
Additional costs include computer systems ($7,000 to $12,000), insurance ($2,000 to $8,000), signage ($8,000 to $12,000), office expenses ($500 to $1,000), inventory ($20,000 to $40,000), licenses and permits ($1,000 to $2,000), dues and subscriptions ($200 to $500), and professional fees ($1,500 to $4,000). Franchisees should also budget for travel, lodging, and meals for initial training, estimated at $3,000 to $6,000, and additional funds for the first three months of operation, ranging from $75,000 to $100,000.
It is important to note that these are estimates, and the actual initial investment may vary depending on factors such as location, market conditions, and the franchisee's ability to negotiate favorable terms with landlords and vendors. Desi District indicates that these figures account for operating the initial location for the first three months.