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Franchise Costs: Detailed Estimates of Tilted Kilt Franchise Costs (2017 FDD)

by Franchise Chatter on April 24, 2014

in Franchise Costs, Restaurant Franchise, Sports Bar Franchise

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Tilted Kilt at The Shoppes at Hamilton

This post was updated on May 25, 2017 to reflect information from Tilted Kilt’s 2017 FDD (Item 7).

Detailed Estimates of Tilted Kilt Franchise Costs Based on Item 7 (Estimated Initial Investment) of Tilted Kilt’s 2017 Franchise Disclosure Document

For Ground-Up Construction

  • In ground-up construction, you will purchase a parcel of land and develop the land and construct a building sufficient to operate your Tilted Kilt Restaurant.

1.  Initial Franchise Fee:  $75,000

2.  Construction Buildout and Leasehold Improvements:  $1,300,000 to $1,600,000

  • Typically, a Tilted Kilt restaurant will have approximately 4,500 to 6,500 square feet of retail space and seat approximately 150 to 250 customers inside. Ideally, patio seating is also available.
  • Your costs for tenant finish for the Restaurant will depend in large part on the square footage of your Restaurant, the location, and overall costs in the market in which you are developing the Restaurant.
  • The leasehold improvements that you will typically make to a built but unimproved location include:  installation of a grease trap, interior remodeling, floor covering, painting, HVAC, electrical, design, and other improvements.
  • These estimated costs include payments for architects, and, if your restaurant is located in leased space, an as-built survey completed before the creation of architectural plans. You will be directly responsible for these fees and costs.

3.  Kitchen Equipment, Smallwares, and Beer System:  $140,000 to $320,000

  • This item includes the estimated costs to obtain and install the grill and the ventilation system for your grill, as well as refrigerators, freezers, sinks, dishwashers, oven, beer taps, food preparation stations, and smallwares.

4.  Furniture, Fixtures, and Signs:  $280,000 to $300,000

  • This item includes the estimated costs to obtain required furniture, fixtures, and signs for a Restaurant, including bar, tables, chairs, furniture, counters, millwork, and other restaurant items, as well as gaming furniture (such as pool tables and shuffle board).
  • The gaming furniture is typically leased; the chart includes the initial lease costs for these items. If purchased, the gaming furniture would cost approximately $25,000.

5.  Electronics:  $110,000 to $130,000

  • This item includes required electronics and audio/visual equipment, such as projectors, televisions, wall mounts, speakers, a motorized screen/video wall, a Digital Video Recorder player, audio and video matrix switches, power supplies, a music sound system, amplifiers, a control system, video surveillance equipment, and warranty plans for certain products, each that meet the specifications prescribed in the Operating Manual.

6.  Point-of-Sale System, Software, and Office Equipment:  $36,000 to $60,000

  • This item includes the estimated costs to purchase and license a computerized point-of-sale system and software, telephone system, photocopier, computers and software, and fax machine.
  • The estimates include charges for 6 to 8 point-of-sale terminals; your costs may be higher if you decide to add more terminals.

7.  Opening Inventory, Costumes/Employee Attire, and Supplies:  $50,000 to $75,000

  • You must open with and maintain an adequate inventory of menu items, food and ingredients, beer, liquor and beverages, costumes or other employee attire, paper goods and branded products, and merchandise for retail sale to serve your customers.

8.  Security Deposits, Utility Deposits, Licenses; Related Professional Fees:  $12,000 to $150,000

  • Security deposits, if applicable to your Restaurant, range from one to two months’ rent; utility deposits range from a nominal amount to approximately $4,000; and business licenses range from approximately $100 to $1,000 depending on your location.
  • The professional and other fees and costs relating to the acquisition of a liquor license may be as much as $120,000 or more. Since a liquor license may be controlled by local authorities in your area, the costs may vary greatly.

9.  Initial Franchisee Training (Travel and Living Expenses):  $10,000 to $20,000

  • The high range estimate covers expenses for up to four people attending up to a 19-day training session in Tempe, Arizona or another location that Tilted Kilt may designate.
  • The estimates do not include travel and living expenses incurred in attending and participating in a Restaurant opening; this is recommended if timing permits, but is not mandatory.

10.  Casting Call Event:  $8,000 to $18,000

  • You must hold a casting call event before your Restaurant opens for business.
  • If you do not have a certificate of occupancy to use your Restaurant for the Casting Call Event, expenses will include renting a casting location that Tilted Kilt has approved before the Casting Call Event (such as a conference room, lounge, or empty retail space or Tilted Kilt’s Casting and Recruiting RV, if available).
  • Additionally, you will be required to have obtained from Tilted Kilt the approved Cassie Initiate décor package, as well as obtained the necessary office supplies and all required casting and recruiting print materials for General Manager and prospective applicants.
  • It is estimated that the cost of renting the casting location, obtaining the Cassie Initiate décor package, office supplies, and casting and recruiting print material will be approximately $6,000. This does not include Kilt Girl costumes or staff attire.

11.  Grand Opening Program:  $16,000 to $20,000

  • You must spend a minimum amount, which Tilted Kilt will designate when you execute the Franchise Agreement (which will not be in excess of the high range estimate noted), on the Grand Opening Program.
  • Tilted Kilt will mutually determine with you at what time around the commencement of your operation that your Grand Opening Program should be conducted, but it will start at least 4 weeks before opening and run through at least 60 days after opening.

12.  Additional Funds – 3 Months:  $20,000 to $100,000

  • This item includes a variety of expenses and working capital items during your start-up phase such as:  site demographic and psychographic report; rent; debt service; legal costs; accounting fees; insurance premiums; advertising and promotional expenses and materials; employee salaries; and other miscellaneous costs. However, this item excludes your salary.
  • Although not required, if you choose to develop a catering business, you may incur additional expenses (to purchase or lease a vehicle, serving dishes, a warming system, and linens, among others).

13.  Total Estimated Initial Investment:  $2,057,000 to $2,868,000

  • Tilted Kilt relied on its leadership team’s combined 120 years of experience in the restaurant business and in the opening of other non-restaurant franchised businesses when preparing these figures.

For Built-to-Suit Construction

  • In a build-to-suit construction, typically, you will negotiate with a landowner to construct a building suitable for the operation of your Tilted Kilt Restaurant.
  • Total Estimated Initial Investment:  $887,000 to $1,233,000

For Conversion of an Existing Restaurant

  • In a conversion, you will convert an existing restaurant to a Tilted Kilt Restaurant.
  • Total Estimated Initial Investment:  $1,094,000 to $2,133,000

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