Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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Franchise Costs: Detailed Estimates of Mrs. Fields Franchise Costs (2017 FDD)

by Franchise Chatter on December 8, 2013

in Cookie Franchise, Franchise Costs



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This post was updated on April 26, 2017 to reflect information from Mrs. Fields’ 2017 FDD (Item 7).

Detailed Estimates of Mrs. Fields Franchise Costs Based on Item 7 (Estimated Initial Investment) of Mrs. Fields’ 2017 Franchise Disclosure Document

For a Mrs. Fields Store

1.  Initial Franchise Fee:  $35,000



2.  Travel and Living Expenses While Training:  $2,000 to $3,000

  • You must pay any incidental expenses that you and your manager and any other trainees incur while attending the initial training program, including car rental, gas, airline tickets, meals, hotel room, entertainment, and salaries.

3.  Real Estate Lease:  Amount Not Specified

  • If you do not currently own adequate space, you must lease the space for your Store. Typical locations are shopping malls and strip shopping centers. The average Mrs. Fields Store requires from 600 to 900 square feet, but may vary widely.
  • In addition to rental payments, your lease may require other payments to the landlord such as payments for shopping center or building operating expenses, common area maintenance expenses, food court expenses, merchants’ association assessments, assessment for shopping center promotion and advertising, and the like. Your lease may also require you to spend a certain amount on advertising and promotion for your Store.

4.  Improvements and Equipment:  $179,495 to $312,500

  • These estimates include construction costs (labor and material) for typical tenant improvements and remodeling to prepare a site for operation of a Mrs. Fields Store; as well as estimated costs for necessary trade fixtures, such as display cases, signage, counters, and work tables; and equipment, such as ovens, refrigerators, beverage dispensers, coffee preparation and dispensing equipment, small wares, and cash registers.
  • The estimates also include construction management costs, general conditions, builder’s risk/liability insurance, and financing costs.
  • If you develop a new Store, Mrs. Fields will provide you with prototypical plans and specifications at no additional cost to you, but you must also employ and pay an architect or engineer to prepare a site plan and other construction documents to adapt these plans and specifications to city, state, and local building codes and to the specific site chosen for your Store.
  • A modular, prefabricated Store is a free-standing Mrs. Fields Store that is operated within a mall, shopping center, or other site, but is not a permanent, in-line structure. It is, however, usually operated under a long-term lease.
  • The modular unit is assembled using prefabricated components built off-site, often at a savings over traditional construction methods. It is typically most appropriate for high-traffic center court or corridors within larger metropolitan malls.
  • If you find a site that Mrs. Fields approves for installation of this type of unit, you must purchase components from a vendor or vendors Mrs. Fields designates.

5.  Opening Product and Soft Goods Inventory:  $1,000 to $5,000

  • This estimate includes supplies, opening inventory, accounting forms and systems, soft goods such as napkins, cups, and paper goods, utensils, packaging materials, and other required items. The costs will vary depending upon your inventory levels and storage space.

6.  Grand Opening Promotion (if opening a new Store):  $5,000 to $10,000

  • If you are developing a new Mrs. Field’s Store, you must spend between $5,000 and $10,000 on a grand opening advertising and promotional program, a portion of which may be paid to Mrs. Fields or an affiliate to cover the cost of materials that Mrs. Fields or an affiliate may provide to you for the grand opening. You may also incur expenses from other vendors and suppliers in conducting your grand opening promotion.

7.  Deposits and Other Prepaid Expenses:  $4,000 to $5,000



  • You may be required to pay a security deposit under your real estate lease and other deposits for utilities and insurance premiums.
  • Lease security deposits are typically due upon signing and can potentially be refundable if you do not default on your lease. Your lease may also require you to pay the last month’s rent in advance.
  • Deposits for utility services are typically required at the time the service is applied for, and may or may not be refundable.

8.  Professional Fees:  $9,000 to $10,000

  • You may find it necessary to retain an attorney to review the real estate lease or sublease, the franchise documents, or to assist in forming a corporation, partnership, or limited liability company. You may also retain an accountant for advice in establishing and operating your franchise business and filing necessary tax forms and returns.

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

  • Insurance providers may require an annual payment, semi-annual installments, or monthly installments. This estimate contemplates monthly installments for 3 months.
  • These estimates also include workers’ compensation insurance, which are based on wages, which will vary from state to state.

10.  Coffee Preparation and Serving Equipment:  $2,500 to $10,000

11.  Computer Hardware and Software:  $3,500 to $4,500

  • In addition to this initial cost, you must pay to Mrs. Fields’ designated supplier monthly maintenance and subscriber fees related to your computer system. Mrs. Fields also currently requires that you have Internet access in your Store premises, which will cost approximately $150 for installation and $600 per year or more for a subscription.
  • This estimate also includes costs to acquire and implement the necessary hardware and software to operate a drive-through window, which Mrs. Fields may permit at designated locations.

12.  Additional Funds (3 months):  $8,000 to $12,000

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

13.  Totals:  $251,995 to $410,500



For a Mrs. Fields Kiosk

  • The total estimated initial investment necessary to begin operation of a Mrs. Fields kiosk ranges from $166,806 to $223,640.

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