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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 ExpenditureAmountMethod of PaymentWhen It Is DueTo Whom the Payment Is Made
Franchise Fee$15,000-$30,000Lump SumAt signing of franchise agreementPretzelmaker
Grand Opening Marketing$3,000-$5,000As IncurredAs IncurredThird party suppliers or Pretzelmaker
Travel and Living Expenses While Training$2,000-$4,000As IncurredAs IncurredAirlines, hotels, and restaurants
Dough Ingredients$1,000-$5,000Lump SumBefore OpeningPretzelmaker’s affiliate
Other Opening Inventory$500-$1,000Lump SumBefore OpeningOther suppliers
Architectural Fees$4,000-$7,500As IncurredAs IncurredArchitects
Furniture, Fixtures, Equipment, and Décor$60,000-$85,000As IncurredAs IncurredThird parties
Signs$4,500-$7,500As IncurredAs IncurredThird parties
Prepaid Rent and Security Deposit$2,500-$7,500As IncurredAs IncurredLandlord
Leasehold Improvements$95,000-$150,000As IncurredAs IncurredVarious contractors / suppliers
Utility Deposits$2,200-$3,000As IncurredAs IncurredUtility companies
Professional Fees$1,000-$6,000As IncurredAs IncurredYour attorneys, accountants, and business advisors
Computer System$2,500-$5,000As IncurredAs IncurredSuppliers
Business Licenses, Permits, etc. (first six months)$1,500-$2,500As IncurredAs IncurredGovernment agencies
Insurance (three months)$2,500-$3,500As IncurredAs IncurredInsurance companies
Additional Funds (three months)$8,000-$12,000As IncurredAs IncurredEmployees, suppliers, utilities, etc
TOTALS$205,200-$332,000


 

* 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

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.

Allen Fuss

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

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

Allen Fuss
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