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Franchise Costs: Detailed Estimates of Marble Slab Creamery Franchise Costs (2017 FDD)

by Franchise Chatter on September 6, 2013

in Franchise Costs, Frozen Dessert Franchise

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Marble Slab Creamery Photo by Global Franchise Group Development

This post was updated on September 19, 2017 to reflect information from Marble Slab Creamery’s 2017 FDD (Item 7).

Detailed Estimates of Marble Slab Creamery Franchise Costs Based on Item 7 (Estimated Initial Investment) of Marble Slab Creamery’s 2017 Franchise Disclosure Document

1.  Franchise Fee:  $15,000 to $25,000

2.  Grand Opening Marketing:  $5,000

  • You must spend the required grand opening marketing and promotion amounts 2 weeks before opening your Store and the 6 weeks after opening the Store. Your cost may be higher based on the length of time you wish to run opening promotions.

3.  Travel and Living Expenses While Training:  $1,000 to $5,000

  • This estimate is for the cost of attending initial training in Atlanta, Georgia or any other venue the franchisor designates. The franchisor provides instructors, facilities, and materials for the initial training program at no charge (for the owner and up to one additional person). You must pay the travel and living expenses, wages, and other expenses your trainees incur during initial training.

4.  Opening Inventory:  $15,635 to $19,135

  • You must have a supply of flavorings, garnishments, food and beverage products, small kitchen wares, cleaning supplies, paper and packaging supplies, beverage cups and lids, report forms, gift cards, and marketing and point-of-sale materials during your operation of the franchise. You may buy these items from various vendors and suppliers.
  • If you are operating a Co-Brand Store, you will also have to purchase Great American Cookies inventory.
  • The initial cost for the gift card program ranges from $100 to $300.

5.  Architectural Fees:  $6,750 to $8,500

  • You must also employ and pay an architect or engineer to prepare a site plan and other construction documents. Although the franchisor will provide you with prototypical plans and specifications at no additional cost to you, you must pay an architect or engineer to adapt these plans and specifications to city, state, and local building codes, and to the specific site chosen for your Store.

6.  Furniture, Fixtures, Equipment, and Decor:  $100,000 to $135,000

  • These estimates include the estimated costs for necessary trade fixtures, such as display cases, counter and work tables, equipment such as ovens, refrigerators, beverage dispensers, coffee preparation and dispensing equipment, and small wares.
  • If you are operating a Co-Brand Store, you may be required to purchase additional fixtures and equipment.

7.  Signs:  $6,500 to $8,500

8.  Prepaid Rent and Security Deposit:  $2,500 to $5,000

  • If you do not currently own adequate space, you must lease the space for your Store. Typical locations are in enclosed shopping malls, but also may be located in other shopping centers, transportation centers, or entertainment venues.
  • A typical Traditional Store requires between 650 and 1,400 square feet of space. A typical modular, prefabricated Non-Traditional Store will use between 400 and 800 square feet of space. A typical Satellite will use between 50 and 150 square feet in a shopping center or venue, but also will require a Traditional Store or Non-Traditional Store.
  • If you are operating a Co-Brand Store, the square footage will range from 400 to 1,400 square feet of space.
  • You may be required to pay a security deposit under your real estate lease. Your lease also may require you to pay the last month’s rent in advance.
  • This estimate includes one month of rent, and is based on a combination of square footage and location.

9.  Leasehold Improvements:  $125,000 to $135,000

  • These estimates include construction costs (labor and material) for typical tenant improvements and remodeling necessary to prepare a site for operation of a Store. The estimates also include construction management costs, general conditions, builders’ risk/liability insurance, and financing costs.

10.  Utility Deposits:  $2,200 to $3,000

  • Deposits for utility services are typically required at the time the service is applied for, and may or may not be refundable.

11.  Professional Fees:  $2,000 to $6,000

  • The franchisor may require that you engage an attorney to review your lease or purchase agreement for the accepted site and supply the franchisor with reasonable documentation of this review.
  • The franchisor strongly recommends that you seek the assistance of professional advisors when evaluating this opportunity.
  • The estimates in this chart are based on professional fees in the state of Georgia. You may experience different rates for professional fees in your market.
  • The franchisor may also require you to engage a professional accountant during the first 12 months of your Store’s operation.

12.  Computer System:  $2,500 to $5,000

  • This estimate includes the cost of purchasing the required computer hardware, software, inventory control system, and point of purchase system from approved suppliers.

13.  Business Licenses, Permits, Etc. (for first 6 months):  $1,500 to $2,500

  • You must maintain all required licenses and permits necessary to build and operate your Store. You should check with local authorities, an attorney, or a business consultant to determine what licenses and permits are necessary at your location.

14.  Insurance (3 months):  $2,500 to $3,500

  • The franchisor requires you to obtain and keep in force certain insurance coverages on a primary, non-contributory basis, with the franchisor and its affiliates named as an additional insured on each policy. Your real estate lease also may impose requirements for insurance coverage in addition to the requirements that the franchisor imposes.
  • The table contains the estimated cost of required insurance premiums for a 3 month start-up period; however, the cost of insurance varies, depending on the insurance company you select, lease requirements, variances in the cost of insurance from city to city and state to state, and other factors.

15.  Additional Funds (3 months):  $5,000 to $10,000

  • This amount represents the range of your initial start-up expenses over the first 3 months of operation. These figures include estimated payroll costs. However, they do not include the salary for a Store manager, on the assumption that you will manage the Store.
  • These figures are estimates and the franchisor cannot guarantee that you will not have additional expenses starting your business.

16.  Totals:  $293,085 to $376,135

  • This total amount is based on the franchisor’s and its predecessors’ market research and experience opening and operating similar stores.
  • These estimates assume that you are developing a Store that will operate independently of any co-brand concept, such as one offered by one of the franchisor’s affiliates.

For Great American Cookies-Marble Slab Creamery Co-Brand Store

  • The total estimated initial investment necessary to begin operation of a Great American Cookies-Marble Slab Creamery co-brand store ranges from $356,085 to $461,135.

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