How do Furniture, Fixtures, and Equipment expenses vary for Desi District franchises?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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 |
-
- 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.
-
- 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 estimated cost for Furniture, Fixtures, and Equipment ranges from $120,000 to $240,000. These costs are paid as incurred to vendors and suppliers via check, debit, and/or credit.
The FDD specifies that this category includes front-of-house furniture and fixtures, design elements, and back-of-house kitchen equipment necessary to operate the restaurant business. The overall expense in this category can fluctuate significantly based on the specific franchise model chosen, whether it's the 'Eatery' model or the 'Eatery and Market' model.
The 'Eatery' model, being a smaller footprint restaurant business, generally represents the lower end of the investment range. Conversely, the 'Eatery and Market' model, which combines a restaurant and grocery business, typically requires a larger footprint and, consequently, a higher investment to open. Therefore, franchisees opting for the 'Eatery and Market' model should anticipate spending more on furniture, fixtures, and equipment compared to those choosing the 'Eatery' model.