Detailed Estimates of Saladworks Franchise Costs Based on Item 7 (Estimated Initial Investment) of Saladworks’ 2018 Franchise Disclosure Document
For a Single Restaurant
1. Initial Franchise Fee: $30,000 to $35,000
2. Architectural Plan Review: $0 to $1,000
- The franchisor’s preferred architect, to be engaged by you, will prepare the architectural plans for your restaurant based on the PDP, which is provided at no cost.
- You must provide the franchisor with complete architectural plans for its review and approval. The cost of using the franchisor’s preferred architect will be $11,500. If you do not use the franchisor’s preferred architect and choose to use a local architect, you must pay the franchisor an architectural plan review fee of $1,000, payable when you request the PDP.
3. Architect Fees: $11,500
- You will be responsible for the cost of your local architect, which the franchisor estimates will range from $11,500 to $12,500 or more, depending on the architect you choose and the geographic region of the country in which you are located.
4. Permits and License Fee: $2,300 to $5,000
- Depending on your general contractor or subcontractor, some permit costs and license fees also may be included in the construction estimate for the premises of your restaurant.
5. Leasehold Improvements: $158,700 to $280,500
- These estimates are based on the new Saladworks prototypical restaurant design of 1,600 to 2,000 square feet and assume the following factors: that your landlord will contribute between $27,000 and $65,000 toward the cost of the buildout of your restaurant, and that the premises contains a level concrete floor suitable for floor covering, demising walls, air conditioning, electricity, gas, sewers, bathroom facilities, water, and plumbing that meet code in your geographic area and that are suitable for your restaurant.
- The franchisor estimates that leasehold improvement costs for the new Saladworks prototypical restaurant design are about $122 per square foot for a strip center location.
- Your construction, remodeling, and decorating costs in a food court location may be lower due to the reduced size of a food court location.
6. Equipment: $105,000 to $105,700
7. Furniture: $4,520 to $12,150
- The estimate set forth in the table assumes that you purchase your furniture, fixtures, and equipment. If you lease these items, you should expect to pay an initial payment of 20% of the price of the furniture, fixtures, and/or equipment (as a “down payment”) and the first and last months’ rent under the lease.
8. Millwork: $14,180 to $24,500
9. Smallwares: $3,920 to $4,470
10. Exterior Signage: $7,600 to $13,100
- The cost of your exterior sign will vary depending on the size allowed by the landlord and municipality. It will vary based on the number of signs you are allowed/choose to have as well as any work that needs to be done to the outside of the building to prepare for the installation of the sign.
11. Menu Board, Graphics, and Interior Signage: $19,300 to $25,640
12. Technology Systems: $553 to $695
- This estimate covers the set-up fee (for music only) and initial monthly Technology Bundle Fee for a single POS unit and a double POS unit, online ordering, loyalty program, restaurant music service, profit and loss tool, PCI compliance services, intranet access, and Technology Development Fee.
13. Grand Opening Marketing: $5,000
- You must spend at least $5,000 to conduct a Grand Opening Advertising Program beginning 2 weeks before and immediately on opening your restaurant, and you must provide proof of such expenditures before the franchisor approves your restaurant opening. The franchisor must approve the Grand Opening Advertising Program.
14. Security Deposit: $0 to $11,500
15. Uniforms, Menu Materials, Office Supplies: $2,450
16. Travel and Living Expenses While Training: $0 to $2,500
17. Opening Inventory: $5,700 to $7,150
18. Insurance: $1,750 to $3,000
- You must obtain insurance policies protecting yourself and the franchisor, and your and the franchisor’s respective officers, directors, partners, and personnel, against any demand or claim for personal injury, death, or property damage, or any loss, liability, or expense arising from the operation of your restaurant.
19. Additional Funds – 3 Months: $42,800 to $45,600
- The estimate for additional funds includes funds you will need during the first 3 months of operations, and is based on the franchisor’s experience and includes, but is not limited to, wages for hourly employees (does not include a salary or draw for you), supplier payments, utilities, bank fees, and other miscellaneous costs and purchases.
- This estimate does not include your royalty fee or advertising fee payments, which are based on your Net Sales.
20. Total: $415,273 to $596,455
21. Total Project Cost: $388,273 to $531,455
- Based on the franchisor’s experience, you may receive on average between $27,000 and $65,000 in tenant improvement allowance, which will be paid back to you by your landlord within 90 days of opening. While you may need the total amount up front, this estimate is representative of total project cost after allowances. Not getting tenant improvement dollars would increase your overall project cost.