Does Endless Summer Sweets expect franchisees to rent or purchase their location?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
We expect that you will rent your location. If you choose to purchase real estate instead of renting, your costs will be significantly different.
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- Lease situations will vary in rental amounts, lease terms, amount of space required, tenant improvements required, security deposit and advance rental required. Location is a major factor in the amount of rent required. Base rent can vary significantly depending on the location and area. You should consult with a commercial real estate agent in your area These estimates may not cover advance rental deposits, insurance and similar expenses. Our estimates in this table assume you pay one month's rent plus a security deposit before you open for business. You may need to negotiate a "free rent" period for the time it takes to build out your business. This low estimate assumes a rent payment of one month at a base rent payment of approximately $2,917 and the high end assumes two months at a base rent payment of approximately $5,625 with the typical size of the space in the range of 1,000 to 1,500 square feet.
Source: Item 7 — Estimated Initial Investment (FDD pages 10–14)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, the company expects franchisees to rent their location. The FDD indicates that if a franchisee chooses to purchase real estate instead of renting, their costs will be significantly different.
The document estimates that rent payments will vary based on location and area. It assumes franchisees will pay one month's rent plus a security deposit before opening for business. The low estimate assumes a rent payment of one month at approximately $2,917, while the high end assumes two months at approximately $5,625. The typical size of the space is expected to be in the range of 1,000 to 1,500 square feet.
Prospective franchisees should consult with a commercial real estate agent in their area to get a better understanding of local rental costs. They may also want to negotiate a "free rent" period to cover the time it takes to build out their business. The FDD estimates may not cover advance rental deposits, insurance, and similar expenses, so franchisees should factor those costs into their budget as well.