Updated June 5, 2018.
Detailed Estimates of Beef Jerky Outlet Franchise Costs Based on Item 7 (Estimated Initial Investment) of Beef Jerky Outlet’s 2018 Franchise Disclosure Document
1. Initial Franchise Fee: $44,900
- The initial franchise fee does not include any discount for which you may qualify.
2. Rent – 3 Months: $7,500 to $40,000
- If you do not own adequate or appropriate space, you must build or lease the space for your Store. Beef Jerky Outlet’s estimates assume that you will lease the space for your Store.
- The typical space for a Beef Jerky Outlet Store ranges from 800 to 1,500 square feet. Rents will vary depending upon factors including size, condition, and location of the leased premises, the local real estate market conditions, and competition for the leasable space.
- The estimate in the chart includes an estimate for the first three months of rent. In addition, some landlords may require additional security deposits or rental payments when you sign a lease.
3. Leasehold Improvements: materials: $3,500 to $35,000; demo/space rehab: $10,000 to $50,000; architect: $2,500 to $6,000
- Your leased space will need leasehold improvements to meet the then-current image for all Beef Jerky Outlet Stores. The leasehold improvements may include flooring, wall coverings, and the like.
- The actual cost of your leasehold improvements will depend on labor rates for the area in which your Store is located, whether you must use union labor, the condition of the leased premises, how much the premises must be renovated, and the cost of building materials.
- The low end of the estimate assumes that your landlord may provide a partial build-out allowance, but the franchisor does not guarantee that you will be able to negotiate any kind of tenant improvement allowance.
- The estimate also includes the costs for any blueprints or construction plans you must have.
4. Equipment, Furnishings, and Fixtures: $86,000 to $106,000
- You must purchase and/or lease and install furniture, fixtures, and equipment necessary to operate your Store. Installation charges for equipment are included in the estimates.
- The cost of the furniture, fixtures, and equipment will vary according to local market conditions, suppliers, and other related factors. The typical furniture, fixtures, and equipment you will need include a check-out counter, display racks, bulk food barrels, and refrigeration equipment.
5. Signage: $5,000 to $12,500
- You must obtain the interior and exterior signage the franchisor requires for your Beef Jerky Outlet Store. All signage must comply with the terms of your lease and applicable local law.
6. Initial Inventory: $30,000 to $50,000
- This estimate includes the inventory of retail food products, specialty food products, and other merchandise, as well as shopping bags, bulk food bags, and similar items.
7. Security Deposits: $4,000 to $10,000
- This estimate assumes that you will need to pay a security deposit to your landlord for the leased space, and that your local utility companies (such as electric and telephone) require security deposits.
8. Insurance – 3 Months: $750 to $3,000
- You must maintain the insurance that the franchisor requires during the entire term of the Franchise Agreement. Your insurance premiums may be payable monthly, quarterly, semi-annually, or annually, depending on your insurance company’s practices.
9. Grand Opening Advertising: $5,000
- You must conduct an advertising campaign announcing the grand opening of your Store and you must spend a minimum of $5,000 for this campaign. This amount must be remitted to the franchisor upon signing your Franchise Agreement. The franchisor will disperse these funds as
required during the course of planning and executing your grand opening.
- This amount may not cover all your grand opening expenses and it is not reserved for any specific element or activity related to your grand opening.
- Your grand opening advertising campaign must be conducted in the first 90 days after the opening of your Store.
- Together, you, BJO Marketing Staff, and the franchisor’s marketing partner vendor will conduct your grand opening campaign to align to the franchisor’s branding and strategies.
- All grand opening activities must be approved by the franchisor. The total cost of your grand opening will be determined by an analysis of what grand opening expenses will be incurred in your unique location.
- If the franchisor conducts your campaign and spends less than $5,000, it will credit any balance against your royalty payments or return the balance of funds to you. Any additional amounts will be negotiated with and paid directly to the marketing vendor or others.
10. Travel and Living Expenses While Training: $1,000 to $2,000
- The franchisor will provide its initial training program to you or your Designated Manager at no additional charge. Your actual costs will depend on the distance you must travel, the total number of people attending training, and the accommodations you choose.
11. POS/Office Equipment and Supplies: $4,500 to $7,500
- You must purchase your POS System from the franchisor’s designated supplier. You must also purchase general office supplies, including business cards and basic office equipment.
12. Permits/Licenses: $100 to $500
- You must obtain the operational and professional licenses and permits required by applicable local and state law. All required licenses and permits must be in place and in good standing at all times during the term of your Franchise Agreement.
13. Professional Fees: $1,000 to $2,500
- The franchisor strongly advises you to consult with your own financial and legal advisors, and it anticipates that you will incur professional fees related to your evaluation of the Disclosure Document. If you choose to form an entity for your business, you may incur additional legal fees and expenses that the franchisor cannot estimate here.
14. 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) for the initial period of operations of your Store, which the franchisor anticipates will be three months.
- These expenses include payroll costs, Royalty Fees, and Marketing Fees, but the franchisor has not included any revenue that your Store might generate.
- These figures are estimates, and the franchisor cannot guarantee that you will not have additional expenses starting the business.
15. Total: $215,750 to $394,900
- Beef Jerky Outlet relied on its affiliate’s experience since 2006 in developing and operating Beef Jerky Outlet Stores to compile these estimates.
- The franchisor does not offer financing directly or indirectly for any part of the initial investment.