Detailed Estimates of The Original Pancake House Franchise Costs Based on Item 7 (Estimated Initial Investment) of The Original Pancake House’s 2014 Franchise Disclosure Document
1. Initial Franchise Fee: $60,000
- The Original Pancake House does not offer you financing, directly or indirectly, for any part of the fee or your initial investment. You may not use your franchise or any assets of the Restaurant to secure a loan, without The Original Pancake House’s prior written approval.
2. Travel and Living Expenses While Training: $7,000 to $25,000
- The Original Pancake House offers training for up to four people, including you. Your costs will vary depending upon how many individuals you have trained; the salary you may pay them during training; and their travel, hotel/motel, and food costs.
3. Real Estate and Improvements: Not Specified
- Typically, a Restaurant will be approximately 3,500 to 4,000 square feet, with 110-120 seats.
- Costs will vary significantly depending on whether you are building your own premises or are leasing; whether there is an existing restaurant facility to be converted to a Restaurant or a non-restaurant facility requiring conversion; the property owner/landlord participation in build-out of the premises; the extent of conversion required; and your choices on the extent of the build-out ($110,000 to $700,000).
- The difference between the low and high range is also attributable to various factors, including size, configuration, and condition of the premises; construction, labor, and installation costs; geographic location; price differences between various suppliers and contractors; and shipping distances from suppliers.
- If you lease the premises, monthly rent is estimated to be between $6,250 and $15,000. The difference between the low and high range is also attributable to various factors, including size, configuration, and condition of the premises; and the demand for the site and premises among prospective lessees.
- The Original Pancake House does not estimate the cost of your buying land and/or constructing your own building for the Restaurant. The land would have to be situated on a well traveled thoroughfare, and be of sufficient size to have not less than fifty (50) parking spaces and a structure of approximately 3,500 to 4,000 square feet.
4. Furniture, Fixtures, and Equipment: $190,500 to $500,000
5. Decor: $15,000 to $80,500
- Typically, a Restaurant will be approximately 3,500 to 4,000 square feet. The difference between the high and low range is attributable to various factors including size, configuration, and condition of the premises; installation costs; geographic location; quality of furniture, fixtures, and equipment you select; price differences between various suppliers and shipping distances from suppliers; and style of decor chosen.
6. Signs: $8,000 to $30,250
7. Opening Inventory, Smallwares, and Supplies: $19,500 to $45,500
- The difference between the high and low range is attributable to the size of the Restaurant and price differences between various suppliers and shipping distances from suppliers.
8. Miscellaneous Opening Expenses: $20,000 to $100,000
- These expenses include estimated payroll costs before opening, which will vary greatly depending on the number of employees you train and the length of training before opening.
- These expenses also cover such miscellaneous costs and expenses as installation of telephones and hook up charges for gas, electricity, and related items; legal and accounting expenses; yearly insurance premiums; and other initial opening costs.
9. Additional Funds (6 months): $52,500 to $125,000
- This estimates your need for additional working capital for expenses during the first six months of operation. These figures are estimates and The Original Pancake House cannot guarantee that you will not have additional expenses starting the business, or that you will not need additional working capital for a period greater than six (6) months.
10. Total: $372,500 to $966,250
- The Original Pancake House relied on its experience in the restaurant business, and information provided by its franchisees, to compile these estimates.