This post was updated on February 27, 2017 to reflect information from Boston’s Restaurant & Sports Bar’s 2016 FDD (Item 7).
Detailed Estimates of Boston’s Restaurant & Sports Bar Franchise Costs Based on Item 7 (Estimated Initial Investment) of Boston’s 2016 Franchise Disclosure Document
For Single Ground Up Construction
1. Initial Franchise Fee: $50,000
2. Development Fee: $50,000 for the first Restaurant, plus $25,000 multiplied by the number of additional Restaurants to be developed
- The remaining balance ($0 for the first Restaurant and $25,000 for each additional Restaurant) is due upon execution of the Franchise Agreement.
3. Re-scheduling Expenses for Opening: $5,000
- If you open the Restaurant by the Scheduled Opening Date, Boston’s will refund this amount to you.
4. Site Investigation Report: $0 to $4,000
- This report addresses a wide range of site specific variables (e.g. zoning, public works/engineering, sign requirements, etc.) that may impact the performance of the Restaurant.
5. Geotechnical Report: $0 to $4,000
- This report determines soil conditions (e.g. sand, clay, water) at the site on which the Restaurant will rest and identifies what action, if any, should be taken to ensure that the Restaurant is built on a solid physical foundation.
6. Civil Engineer: $0 to $35,000
- This range represents the estimated consultant and professional design fees and building permit costs associated with the development of your Restaurant.
7. Architectural: $36,000 to $60,500
- You will be provided a prototypical set of drawings for a Restaurant and must use Boston’s designated architect for your first Restaurant.
- This range represents the estimated cost you will pay for the architectural services required to “site adapt” the prototype drawings for your location as required to receive a building permit.
8. Land Costs: Not Included
- Land costs will vary depending on the area in which your Restaurant is located.
9. Building Permits and Licensing: $5,000 to $30,000
- This range is representative of building permit costs only and is only an average estimate.
- Aids to construction fees and liquor licenses are not included. These costs vary too widely to provide an accurate estimate.
10. Building Cost: $1,190,000 to $1,389,000
- The range for building costs represents the estimated construction and interior improvement costs for the shell building.
11. Site Work/Improvements: $18,000 to $295,000
- This estimate includes the costs for site preparation and pre-construction work.
12. Building and Monument Signage: $36,000 to $55,000
- This amount includes the costs of building signs and monument signs.
13. Furniture, Fixtures, and Equipment: $360,000 to $553,000
- This entry includes items such as kitchen equipment, smallwares, televisions and sound systems, security, decorative package, furniture, uniforms, fountain dispensers, draft beer dispensers, phone system, and other miscellaneous fixtures and equipment.
14. Millwork: $130,000 to $187,000
- This represents the cost of all woodwork within the Restaurant.
15. POS Equipment and Computer: $40,000 to $45,000
- You must purchase a point-of-sale system in accordance with Boston’s specifications from an approved supplier.
16. Initial Training and Grand Opening Expenses: $35,000 to $72,500
- This amount represents the estimated cost to hire and train a management team and hourly employees who will staff the Restaurant.
- This entry includes expenses associated with the attendance at Boston’s initial training program as well as with the on-site training provided by Boston’s employees during the opening of your Restaurant and expenses associated with the Grand Opening of the Restaurant.
17. Legal and Accounting: $8,000 to $30,000
- This item is the estimated cost of basic legal and accounting services provided to you by legal and accounting firms.
18. Inventory: $27,000 to $47,000
- You must purchase an initial inventory of food products, beverages, and restaurant supplies according to Boston’s specifications.
19. Manager’s Salary: $29,000 to $35,000
- This is an estimate of the Manager’s salary during training and before opening your Restaurant.
20. Additional Funds (3 months): $30,000 to $50,000
- These additional funds will be needed for expenses such as marketing costs, including costs for a Grand Opening of your Restaurant, the ongoing costs, working capital needs, Manager’s salary after opening, debt service, and additional miscellaneous costs not listed in this Item.
21. Total: $1,999,000 to $2,947,000
- The figures above are estimates only and may vary depending on location. These figures do not include shipping, installation, or any applicable federal or state sales tax.