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.
|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|
* 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.
If you’re ready to bring Pretzelmaker to your community click here to skip to the front of the line by filling out a franchise application.
Global Franchise Group is Amazing because the best thing about them is that's all they do is Quick Service Restaurants. They've got a specialty area of focus and they know everything about that.
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.
There's nothing I can't call them on. Anything from a simple plumbing problem to negotiating an exclusive on my lease. There's always somebody there who's been through it and can help you with it