Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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Franchise Costs: Detailed Estimates of Cousins Subs Franchise Costs (2017 FDD)

by Franchise Chatter on September 26, 2015

in Franchise Costs, Sandwich Franchise

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Cousins Subs Exterior Photo by RiPKey

This post was updated on June 8, 2017 to reflect information from Cousins Subs’ 2017 FDD (Item 7).

Detailed Estimates of Cousins Subs Franchise Costs Based on Item 7 (Estimated Initial Investment) of Cousins Subs’ 2017 Franchise Disclosure Document

Benchmark:  2,000 Square Feet

1.  Initial Franchise Fee:  $25,000

  • If you are purchasing additional franchises, the initial franchise fee is $17,500 for each additional Cousins Subs Shop.

2.  Leasehold Improvements:  $40,000 to $195,000

  • The figures shown are only averages based on Cousins’ experience and are based on a benchmark space of 2,000 square feet. The range of figures is the cost of reasonable renovations or leasehold improvements from a “white box” condition and may be less if the lessor provides a construction allowance to lessee.

3.  Equipment and Small Wares:  $35,000 to $125,000

  • The equipment needed is listed in the Confidential Operations Manual and includes baking and microwave ovens, food warmers, slicers, freezer, refrigeration equipment, shelving, work tables, computer and printer, and other items.
  • You may purchase or lease approved brands and models from approved suppliers.

4.  Seating Package/Millwork:  $22,500 to $75,000

  • This estimate includes the tables, chairs, booths, counter, and beverage area for a space of 2,000 square feet.

5.  Initial Inventory and Supplies:  $2,500 to $6,500

  • Your initial inventory must be purchased from designated sources or approved suppliers. Initial inventory consists of various food products, beverages, paper products, cleaning supplies, condiments, and other supplies utilized in the operation of the Shop.

6.  Point-of-Sale System/Technology:  $10,000 to $22,000

  • The estimate includes a personal computer, the point-of-sale system, a printer, and the software required by Cousins.

7.  Architectural Fees:  $4,500 to $37,000

  • Architectural Fees shown are based on design/build drawings. The remodeling plans or construction plans of each location vary due to the amount of remodeling or type of construction to be performed and the market area for which the plans are produced.

8.  Rent:  $3,000 to $15,000

  • A Shop may be located in a freestanding building, a strip center, a convenience store, or various non-traditional facilities such as a school, airport, sports arena, shopping mall food court, non-traditional store, etc.
  • The estimate is based on a Shop that is approximately 2,000 square feet.
  • Non-traditional facility and convenience store operations will be approximately 600 to 1,000 square feet, and the costs for these outlets could be substantially less.

9.  Lease and Utility Security Deposits:  $0 to $15,000

  • Lessor and utility companies may require that you place a deposit prior to occupation of the premises and prior to installing telephone, gas, electricity, and related utility services.
  • These deposits may be refundable based upon the agreements made with the lessor and utility companies.

10.  Insurance:  $700 to $1,500

11.  Training:  $2,500 to $10,000

  • You are responsible for arranging transportation and paying the expenses for meals and lodging for persons attending the initial training program.
  • The estimate also includes a third-party fee for participation in a supplemental online training course on financial tools.
  • No additional payments are made to Cousins for the initial training programs.

12.  Store Marketing Fee:  $10,000

13.  Signage:  $6,500 to $35,000

  • Signage includes interior and exterior signs that bear the service marks licensed to you.
  • The cost of signage may vary depending on the type, size, and location of the signs, and may also be affected by applicable city code and landlord restrictions. Freestanding signs can add substantial amounts to the total cost.

14.  Additional Funds – 3 Months:  $20,000 to $50,000

  • The amounts for additional funds are projected as sufficient to cover operating expenses, including employee wages (which may vary significantly based on the operations of the Shop and the prevailing minimum wage rate in your jurisdiction), until a sustained level of positive cash flow is attained. However, Cousins cannot guarantee that these amounts will be sufficient.

15.  Total:  $182,200 to $622,000

  • These estimates are based upon over 44 years of experience by Cousins and its affiliates in operating Cousins Subs Shops or similar restaurant operations.
  • Cousins does not offer direct or indirect financing to franchisees for any items.

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