Buffalo Wild Wings Franchise Costs: Estimated Initial Investment (Item 7, 2022 FDD)

For New Free-Standing and Non-Traditional Locations Sports Bars

1.  Fees Related to Site Approval:  $1,200 to $53,800

• Before accepting a site you propose, you must submit site and market information in the form and format that the franchisor specifies.

• The franchisor also may require you to retain the services of a company specialized in assisting restaurant operators during the construction process to assist you in submitting, processing, monitoring, and obtaining in a timely manner all necessary construction documents, licenses, and permits and to advise you throughout the construction of your Sports Bar if the franchisor determines, in its good faith judgment, that you do not have sufficient experience in the development process to manage this function.

2.  Initial Franchise Fee:  $25,000

3.  Opening Team Training Fee:  $0 to $15,000

4.  Reimbursement of Expenses for Opening Team:  $0 to $15,000

• The low end of the range of the Opening Team training fees and expenses assumes that you will provide the opening training yourself using existing personnel.

Total Site Approval, Franchise, and Training Fees:  $26,200 to $108,800

5.  Architecture Fees (based upon utilization of national firm):  $100,000 to $160,000

6.  Construction and Leasehold Improvements:  $1,430,000 to $1,900,000

• These figures include the costs of construction, remodeling, leasehold improvements, and decorating. These costs depend upon the size and condition of the premises, the nature and extent of leasehold improvements required, the local cost of contract work, and the location of your Sports Bar.

• For free-standing locations, the range includes an estimate for the cost of building the Sports Bar’s structure, but does not including the cost of purchasing land, site work, and demolition work.

• If you choose to build and own the Sports Bar’s free-standing premises, the cost for your long-term real property investment obligations is significantly higher and will depend on many independent variables like location and size of the site, site improvement costs, union/nonunion labor regions, soil and environmental conditions, entitlement fees, building and health codes and regulations, and other factors.

• This estimate does not include land cost.

• Down payment requirements and initial financing or commitment expenses are negotiated individually and vary too widely to be predicted realistically.

7.  Furniture, Fixtures, Equipment, and Other Fixed Assets:  $775,000 to $925,000

• The Sports Bar must meet the franchisor’s current standards and specifications, including equipment, furniture, signs, décor, trade dress, design, and layout.

• These figures include costs for refrigerators, freezers, ovens, tables, chairs, and other equipment, furniture, and fixtures.

• Estimated costs for the POS system and audio/visual equipment are separately noted below and are not included in this range.

8.  Audio/Visual Equipment:  $275,000 to $425,000

9.  Computer POS System/Kitchen Display Unit:  $66,400 to $75,000

10.  Office Equipment and Supplies:  $6,000 to $13,000

11.  Sports Memorabilia:  $12,500 to $26,500

12.  Signage and Graphics (excluding pylon or monument signage):  $43,000 to $100,000

Total Building/Construction/Equipment:  $2,707,900 to $3,624,500

13.  Training Expenses:  $8,000 to $12,000

• You must pay the expenses for you, your Control Person, the Unit General Manager, and at least 2 assistant managers to attend the franchisor’s training program, including transportation, lodging, meals, and wages.

• These costs will depend, in part, on the distance you must travel and the type of accommodations you choose. The estimate provided contemplates initial training of 4 people for 7 weeks.

14.  Initial Inventory:  $15,000 to $19,000

• These figures cover the costs for the initial inventory of various food products, beverages, paper products, cleaning supplies, and other supplies used in the operation of the Sports Bar, as well as other merchandise or products that the Sports Bar sells.

• Initial inventory expenditures will vary according to anticipated sales volume and current market prices.

15.  Insurance:  $14,400 to $48,000

• You must obtain and maintain the insurance coverage that the franchisor periodically specifies.

• The estimate covers approximately 25% of the annual premium and includes liquor liability coverage.

• The cost of insurance will vary based on policy limits, type of policies, any lease requirements, nature and value of physical assets, number of employees, square footage, contents of the business, geographical location, and other factors bearing on risk exposure.

16.  Additional Funds for 3 Months:  $100,000 to $150,000

• These figures estimate the additional prepaid expenses and other additional costs and expenses that you will incur in developing and operating the Sports Bar, including Sports Bar management salaries, during the initial 3 months of operation (other than the items identified separately).

• These figures are estimates, and the franchisor cannot guarantee you will not have additional expenses starting the business.

• When your Sports Bar opens, you must have a minimum of $100,000 in immediately accessible working capital funds to use solely to defray the costs of operating the Sports Bar for the initial months.

17.  Rent:  $7,500 to $40,000

• If you do not own suitable space or land for your Sports Bar, you must rent premises suitable for the Sports Bar’s operation.

• This estimate is for your rent the first month and does not include an estimate of monthly real estate-related expenses, such as common area maintenance charges, real estate taxes, and landlord insurance.

• The rental expense may vary widely based on geographic location, size of the facility, local rental rates, landlord’s work, tenant improvement allowance, and other factors.

18.  Lease and Utility Security Deposits:  $10,000 to $20,000

• Landlords may require a security deposit and utility companies may require that you place a deposit before installing telephone, gas, electricity, and related utility services.

• A typical lease deposit is an amount equal to one month’s rent. A typical utility security deposit is one month’s expense.

• These deposits may be refundable if you comply with the lease and utility agreements.

• These estimates may be significantly higher in some jurisdictions where the local authorities may require fees in excess of $200,000 for electrical or sewer/water connections.

19.  Grand Opening Advertising:  $12,500

• You must conduct certain advertising and public relations activities when opening your Sports Bar. You must spend $12,500 for these opening activities during the period starting 45 days before your Sports Bar opens and ending 45 days after your Sports Bar opens.

• Upon the franchisor’s request, you must provide to it proof of these expenditures. The franchisor may (at its option) collect and administer these funds on your behalf.

20.  Liquor License:  $5,000 to $500,000

• You must obtain and maintain a liquor license and other required business licenses and permits for your Sports Bar at your expense. The cost of a liquor license can be significantly higher in a few states and municipalities where the number of licenses is severely restricted or available only from an existing holder.

• You should retain legal counsel specialized in obtaining and maintaining liquor licenses.

21.  Professional Fees:  $20,000 to $70,000

Total Pre-Opening/Operating Deposits:  $192,400 to $871,500

22.  Total Estimated Initial Investment:  $2,926,500 to $4,604,800

• The franchisor has used its and its Parent’s almost 40 years’ experience in the business to prepare the estimate for additional funds and other estimates.

• The estimate does not include any finance charge, interest, or debt service obligation.

• Neither the franchisor nor its affiliates offer financing for any part of the initial investment.