Beef Jerky Experience Franchise Costs: Estimated Initial Investment (Item 7, 2022 FDD)

1.  Initial Franchise Fee:  $49,900

• 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 Experience’s estimates assume that you will lease the space for your Store.

• The typical space for a Beef Jerky Experience Store ranges from 800 to 1,200 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 Experience 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 estimate also includes the costs for any blueprints or construction plans you must have.

• It is possible that additional expenses beyond those stated here for labor, permits, build-out, and architectural plans may be incurred in certain areas such as major malls or downtown urban areas.

4.  Equipment, Furnishings, and Fixtures:  $60,000 to $106,000

• You must purchase and/or lease and install furniture, fixtures, and equipment, from Beef Jerky Experience’s approved vendor, necessary to operate your Store. Installation charges for equipment are included in the estimates.

• The cost of the furniture, fixtures, and equipment may 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 that Beef Jerky Experience requires for your Beef Jerky Experience 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.  Kickstart Assets:  $5,000

• Upon execution of your Franchise Agreement, Beef Jerky Experience will require payment of $5,000 for costs incurred during the first 6 months of store operation with respect to provision of bookkeeping accounting services, social media advertising, a POS loyalty program, Sample Set Up, Computer and/or Microsoft Office subscription, and local chamber of commerce fee.

• Beef Jerky Experience will pay the applicable vendor directly or reimburse the franchisee through ACH for these expenses during the initial 6 months of operation of your franchise.

• Beef Jerky Experience will waive this requirement for franchisees desiring to enter into a renewal Franchise Agreement or executing a Franchise Agreement for an additional franchise location, if franchisee is in compliance with Article 10 of their existing Franchise Agreements regarding submission of financial data.

10.  Travel and Living Expenses While Training:  $1,000 to $2,000

• Beef Jerky Experience will provide its initial training program to you and 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/Back Office Computer; Equipment and Supplies:  $4,500 to $7,500

• You must purchase your POS System from Beef Jerky Experience’s designated supplier. You must also purchase general office supplies, including a back-office computer, business cards, and basic office equipment.

12.  Permits/Licenses:  $100 to $2,500

• 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 prior to opening and remain in good standing at all times during the term of your Franchise Agreement.

13.  Professional Fees:  $1,000 to $2,500

• Beef Jerky Experience 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 and review of your lease documents. If you choose to form an entity for your business, you may incur additional legal fees and expenses that Beef Jerky Experience 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 Beef Jerky Experience anticipates will be three months.

• These expenses include payroll costs (but excluding owner draw or salary), Royalty Fees, and Brand and Technology Fees, but Beef Jerky Experience has not included any revenue that your Store might generate.

• These figures are estimates, and Beef Jerky Experience cannot guarantee that you will not have additional expenses starting the business.

15.  Total:  $194,750 to $401,900

• Beef Jerky Experience relied on its affiliate’s experience since 2006, as well as those of its franchisees, in developing and operating Beef Jerky Experience Stores to compile these estimates.

• Beef Jerky Experience does not offer financing directly or indirectly for any part of the initial investment.