This post was updated on June 12, 2017 to reflect information from Bottle and Bottega’s 2017 FDD (Item 7).
Detailed Estimates of Bottle and Bottega Franchise Costs Based on Item 7 (Estimated Initial Investment) of Bottle and Bottega’s 2017 Franchise Disclosure Document
1. Initial Franchise Fee: $24,000 to $29,000
2. Real Estate Lease/2 Months’ Rent: $7,500 to $10,500
- These estimates assume that your location will be a leased, improved, finished retail studio-type unit.
- A Studio typically occupies 1,400 to 1,700 square feet of commercial space.
- Studios are typically located on a major thoroughfare, or in an urban studio front.
- Typical rent costs usually range from $3.00 to $3.50 per square foot per month, depending upon factors such as size, condition, and location. Your rent will generally be a fixed base rent plus triple net charges. Your lease may also provide for percentage rent, which will be a percentage of your sales at the Studio.
3. Architect, Engineer, Drawings: $2,000 to $4,000
4. Construction, Remodeling, Leasehold Improvements, and Decorating Costs: $31,500 to $58,000
- The figures in the chart include a general contractor’s fee (generally equal to 10% to 15% of total construction costs); contractor’s insurance; materials and supplies; tools; labor and subcontractor fees; and other costs to construct leasehold improvements conforming to Bottle and Bottega’s standards.
- Bottle and Bottega currently recommends, but does not require, that you use a contractor that it specifies. However, it has the right to require you to use its designated contractor.
- The cost range does not include equipment and build-out requirements dictated by municipalities for alcohol or food components.
- These estimates do account for rental credits and tenant improvement allowances.
5. Permits and Licenses: $1,000 to $3,000
- This includes the cost to obtain any required licenses before the Business opens for business, including a beer and wine license or a liquor license when applicable. The costs for obtaining a beer and wine license or a liquor license varies depending on the jurisdiction and may be substantially higher.
6. Exterior Signage/Window Graphics: $3,000 to $10,000
7. POS System: $750 to $1,000
8. Equipment, Fixtures, and Other Fixed Assets; Smallwares; Furniture; Interior Graphics: $11,400 to $19,000
- You must purchase an “Initial Package” that will include furniture, fixtures, and equipment (such as tables, chairs, couches, desks, display cases, lighting, speakers, easels, glassware, drapery, ice maker, dishwasher, and all interior design elements and interior signage), exterior signage, window graphics, and the POS System.
- It does not include the costs of air-conditioning equipment or equipment and build-out requirements dictated by municipalities for alcohol or food components.
- The figures in the chart reflect the cost to purchase two mobile kits for off-site events that you will conduct as part of the Mobile Business component of your Bottle & Bottega Business.
- However, because the franchisor assumes that you will already own or lease a car or have other transportation available to you from which you will conduct the Mobile Business, the figures in the chart do not reflect the potential cost to purchase or lease a car or other suitable transportation for your Mobile Business.
9. Inventory, Uniforms: $1,100 to $2,000
10. Pre-Opening Training Expenses: $1,500 to $3,000
- You must make arrangements for, and pay the expenses of, your franchisee partner who attends the Initial Training Program, including transportation, meals, and wages. The figures in the chart represent the estimated cost for one person to attend the Initial Training Program.
11. Security Deposits: $3,000 to $6,000
- Security deposits generally are required by utilities, the landlord, and equipment lessors. The estimate includes amounts you will pay for an internet connection and business phone.
12. Grand Opening Advertising Promotion: $3,000
- You must spend a minimum of $3,000 on this grand opening advertising promotion.
13. Insurance – Liability and Workers Compensation (initial deposit): $450 to $600
14. Legal and Professional Fees: $1,500 to $3,000
15. Security System (1 month): $100 to $150
- Bottle and Bottega estimates that the security system will cost between $100 and $150 per month to lease.
16. Additional Funds (3 months): $6,000 to $10,000
- These estimates do not include pre-opening training expenses, pre-opening canvas and paint waste, managerial salaries, or any payment to you.
- These amounts are the minimum recommended levels to cover operating expenses, including your artist fees, for three months. However, Bottle and Bottega cannot guarantee that these amounts will be sufficient.
17. Total: $97,800 to $162,250
- All amounts are non-refundable unless otherwise noted.
- There is no additional investment for real property, equipment, fixtures, other fixed assets, construction, remodeling, leasehold improvements, decorating costs, inventory, security deposits, utility deposits, or business licenses required to begin operation of the Mobile Business component of your Bottle and Bottega Business.