Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
  • CruiseOne
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  • Massage Envy
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  • Orange Leaf Frozen Yogurt
  • Planet Fitness
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Franchise Costs: Detailed Estimates of Your Pie Franchise Costs (2016 FDD)

by Franchise Chatter on May 18, 2014

in Franchise Costs, Pizza Franchises



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This post was updated on August 24, 2016 to reflect information from Your Pie’s 2016 FDD (Item 7).

Detailed Estimates of Your Pie Franchise Costs Based on Item 7 (Estimated Initial Investment) of Your Pie’s 2016 Franchise Disclosure Document

  • All amounts listed in the table below are non-refundable, except that a portion of the initial franchise fee is refundable if Your Pie determines that your required trainees cannot complete initial training to its satisfaction and it decides to terminate the Franchise Agreement.

1.  Initial Franchise Fee:  $35,000

2.  Real Estate/Rent:  Varies

  • A Your Pie Restaurant occupies approximately 1,750 to 2,700 square feet of space. Rent depends on geographic location, size, local rental rates, businesses in the area, site profile, and other factors and could be considerably higher in large metropolitan areas.
  • Your Pie Restaurants can be located in strip shopping centers, free-standing units, and other venues in downtown commercial areas and in residential areas.
  • Your Pie anticipates that you will rent the Restaurant’s premises. It is possible, however, that you might choose to buy, rather than rent, real estate on which a building suitable for the Restaurant already is constructed or could be constructed.
  • Because of the numerous variables that affect the value of a particular piece of real estate, this initial investment table does not reflect the potential cost of real estate.

3.  Utility and Security Deposits:  $2,500 to $8,000

4.  Leasehold Improvements:  $113,750 to $175,500

  • Leasehold improvement costs, including floor covering, wall treatment, counters, ceilings, painting, window coverings, electrical, carpentry and similar work, and architect’s and contractor’s fees, depend on the site’s condition, location, and size; the demand for the site among prospective lessees; the site’s previous use; the build-out required to conform the site for your Restaurant; and any construction or other allowances the landlord grants.
  • The lower figure assumes that you remodel an existing restaurant, the higher figure assumes construction of a new space.

5.  Computer System:  $8,000 to $11,000

6.  Furniture, Fixtures, and Equipment:  $102,000 to $170,802

  • These amounts are for new equipment for the Restaurant, including ovens, refrigerators, freezers, small wares, stereo system, security system, televisions, tables, chairs, and millwork.

7.  Signage:  $4,000 to $7,803

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

9.  Architectural Plans and Civil Engineer:  $11,000

  • The architect will provide architectural services relating to the Restaurant building. The civil engineer will provide engineering services in conjunction with the architect and contractor.

10.  Office Equipment and Supplies:  $1,500 to $3,500

  • This includes a small desk and chair, safe, adding machine, printer, fax machine, and telephone system.

11.  Business Licenses and Permits:  $2,500 to $7,000

  • The estimate includes the costs and expenses you will incur to obtain legal counsel to assist you with obtaining your business licenses and permits from state and local authorities. You must sell beer and wine at your Restaurant and you will need any required license to sell alcoholic beverage at your Restaurant (“Alcoholic Beverage Licenses”).
  • The types of Alcoholic Beverage Licenses you need and the amount necessary to obtain the Alcoholic Beverage Licenses, will vary widely among municipalities and will depend on the local governing authority involved. This estimate as it relates to Alcoholic Beverage Licenses is based solely on the franchisor’s experience with Alcoholic Beverage Licenses for Your Pie Restaurants it has developed in Georgia. The costs for Alcoholic Beverage Licenses in your state and municipality may be much higher.

12.  Opening Inventory and Supplies:  $9,000

  • This includes food and beverage products, paper products, cleaning supplies, and printing and other supplies.

13.  Grand Opening Marketing:  $10,000

  • This is the maximum required amount you must spend on grand opening marketing for your Restaurant.
  • Grand opening advertising takes place shortly before the opening of your Restaurant and for 60 days thereafter, or such other period as Your Pie may designate.

14.  Training Expenses (out-of-pocket costs for 2 people):  $7,000 to $9,000

15.  Insurance – 3 months:  $500 to $1,500

  • You must obtain and maintain certain types and amounts of insurance. Insurance costs depend on policy limits, types of policies, nature and value of physical assets, gross revenue, number of employees, square footage, location, business contents, and other factors bearing on risk exposure.
  • The estimate contemplates insurance costs for 3 months.

16.  Additional Funds – 3 months:  $10,000 to $20,000

  • This item estimates your initial start-up expenses (other than the items identified separately in the table). These expenses include payroll costs but not any draw or salary for you. These figures are estimates and Your Pie cannot guarantee that you will not have additional expenses starting the business.

17.  Total Estimated Initial Investment (excluding real estate costs):  $318,750 to $485,105

  • In providing these figures, Your Pie relied on its experience operating Your Pie Restaurants.
  • Your Pie estimates these amounts will be required to cover your initial start-up expenses such as payroll, utilities, additional inventory, and other operating costs for the first three months after opening. However, these figures are merely estimates and there is no assurance that additional working capital will not be necessary during this initial phase or after.



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