What Items Make Up the Total Investment?


Considering investing in a franchise is a big decision. To understand the scope of your investment, you need to know where your money is going. A question we often get is “What is my investment going toward?” We wanted to be able to answer this question easily and effectively, which is why we put together this handy chart.

Take a look at the numbers for a traditional or non-traditional store.*

Type of Expenditure

Amount

Method of Payment

When It Is Due

To Whom the Payment Is Made

Franchise Fee

$25,000

Lump Sum

At signing of franchise agreement

Pretzelmaker

Grand Opening Marketing

$3,000-$5,000

As Incurred

As Incurred

Third party suppliers or Pretzelmaker

Travel and Living Expenses While Training

$2,000-$4,000

As Incurred

As Incurred

Airlines, hotels, and restaurants

Dough Ingredients

$1,000-$5,000

Lump Sum

Before Opening

Pretzelmaker’s affiliate

Other Opening Inventory

$500-$1,000

Lump Sum

Before Opening

Other suppliers

Architectural Fees

$4,000-$7,500

As Incurred

As Incurred

Architects

Furniture, Fixtures, Equipment, and Décor

$60,000-$85,000

As Incurred

As Incurred

Third parties

Signs

$4,500-$7,500

As Incurred

As Incurred

Third parties

Prepaid Rent and Security Deposit

$2,500-$7,500

As Incurred

As Incurred

Landlord

Leasehold Improvements

$95,000-$150,000

As Incurred

As Incurred

Various contractors / suppliers

Utility Deposits

$2,200-$3,000

As Incurred

As Incurred

Utility companies

Professional Fees

$1,000-$6,000

As Incurred

As Incurred

Your attorneys, accountants, and business advisors

Computer System

$2,500-$5,000

As Incurred

As Incurred

Suppliers

Business Licenses, Permits, etc. (first six months)

$1,500-$2,500

As Incurred

As Incurred

Government agencies

Insurance (three months)

$2,500-$3,500

As Incurred

As Incurred

Insurance companies

Additional Funds (three months)

$8,000-$12,000

As Incurred

As Incurred

Employees, suppliers, utilities, etc

TOTALS

$205,200-$327,000

* This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. An offer can be made by prospectus only. The table above includes information regarding a franchisee’s estimated initial investment for traditional locations from Item 7 of Pretzelmaker’s 2016 Franchise Disclosure Document (“FDD”). More information, including explanatory footnotes that supplement the table above, can be found in Item 7 of the FDD.

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SUCCESS STORIES

I love this business. One of the reasons my wife and I chose this business is because of the simplicity of the product. It’s a very simple business model. A very simple business.

Rajat Ghosh

Contact us today to learn more!

877.639.6321


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