This post was updated on March 5, 2017 to reflect information from Beef ‘O’ Brady’s 2016 FDD (Item 7).
Detailed Estimates of Beef ‘O’ Brady’s Franchise Costs Based on Item 7 (Estimated Initial Investment) of Beef ‘O’ Brady’s 2016 Franchise Disclosure Document
- The amounts assume a Family Sports Pub ranging from 3,300 to 4,500 square feet. These ranges are based on the operating expenses of franchised Family Sports Pubs and are not maximum or minimum amounts.
- The franchisor prepared these estimates based upon the experience of its management team and Family Sports Pubs.
1. Initial Franchise Fee: $35,000
- Your Initial Franchise Fee of $35,000 is payable 50% upon signing of Franchise Agreement and 50% when you sign your lease or 30 days prior to ground breaking, whichever comes first.
- If you are an Area Developer, the Initial Franchise Fee is $35,000 for your first Family Sports Pub and $17,500 for each additional Family Sports Pub opened under your Area Development Agreement.
2. Kitchen and Pub Equipment/Smallwares: $156,000 to $183,500
3. Furniture and Millwork: $54,000 to $70,000
4. TV/Sound System: $35,000 to $48,000
5. Architect Fees and Permits: $9,700 to $14,000
6. Pub Lease: $8,000 to $15,000 per month
- These estimates do not include the cost of real estate since it is assumed that you will rent the space for your Family Sports Pub.
- Annual rent is based on the commercial lease of approximately 3,000 square feet, including one month’s rent as an initial security deposit, plus 6.0% sales tax (your sales tax may differ).
7. Pub Build-out: $280,000 to $608,000
- The pub build-out varies depending on the landlord and/or vendor contributions.
8. Opening Inventory: $25,000 to $35,000
9. Signs: $7,500 to $18,000
10. Insurance: $4,000 to $20,000
11. Decor: $4,000 to $7,500
12. Business and Alcoholic Beverage Licenses: $500 to $15,000
- The expenses you will incur to obtain a permit or license to sell alcoholic beverages in your Family Sports Pub could be substantially in excess of $5,000.
- Since the availability and expenses of acquiring an alcoholic beverage license or permit varies substantially from jurisdiction to jurisdiction, you should consult the appropriate governmental authority concerning the availability of alcoholic beverage licenses or permits and the associated expenses for your Family Sports Pub before you sign a Franchise Agreement.
- In some jurisdictions, the costs of these licenses may far exceed the amounts estimated.
13. Computer System: $19,000 to $30,000
- This includes the cost of the Computer System, Software, and Annual Help Desk software support fee, and purchase of service agreements from the franchisor’s approved vendors. You may choose to purchase additional computer software, hardware, support, and training services for additional amounts.
- In some instances, you may be able to lease the Computer System instead of purchasing it.
- You are also required to have online access to the Internet. This cost also includes online (like Internet) connection and service fees.
14. Legal and Accounting: $3,000 to $8,000
15. Utility Deposits and Impact Fees: $6,000 to $10,000
16. Promotional and Advertising – 5 Months: $2,000 to $5,000
17. Additional Funds – 3 Months: $20,000 to $35,000
- This figure covers miscellaneous expenses for the first three months of operation of your Family Sports Pub. The franchisor has relied on its management’s experience and on the experience of franchised Family Sports Pubs in formulating this estimate.
18. Total (excluding real property): $668,700 to $1,157,000
- These totals are based on estimated expenses. The franchisor cannot guarantee that you will not incur additional expenses in starting your Family Sports Pub’s operations.
- The franchisor does not offer direct or indirect financing to you for any of the initial investment.
- This amount may be less to the extent you obtain a build-out allowance from the lessor of the premises of your Family Sports Pub.