Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
  • CruiseOne
  • Firehouse Subs
  • Jimmy John's
  • Massage Envy
  • Menchie's
  • Orange Leaf Frozen Yogurt
  • Planet Fitness
  • The UPS Store
  • Yogurt Land
  • And Hundreds More...

No, thanks. I'm not interested in uncovering the actual earnings of hundreds of franchises at this time.

Franchise Costs: Detailed Estimates of Cookies by Design Franchise Costs (2015 FDD)

by Franchise Chatter on March 13, 2016

in Cookie Franchise, Franchise Costs



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Cookies by Design from merchantcircle

Detailed Estimates of Cookies by Design Franchise Costs Based on Item 7 (Estimated Initial Investment) of Cookies by Design’s 2015 Franchise Disclosure Document

1.  Initial Franchise Fee:  $30,000

  • The standard initial franchise fee for your first Shoppe is $30,000.

2.  Pre-Opening Travel, Lodging, and Meals for Initial Training:  $3,000 to $5,000 (per person)

  • You, or if franchisee is a business entity, one of your equity owners, must attend the franchisor’s initial training program and complete it to the franchisor’s satisfaction. The franchisor may also admit, at its discretion, your spouse if franchisee is an individual; any additional equity owners of franchisee if franchisee is a business entity; and/or your General Manager.
  • You will be responsible for all expenses related to training attendance including travel, lodging, meals, and wages.
  • The franchisor reserves the right to charge a reasonable per person tuition fee for the third and additional attendees if more than two individuals are permitted to attend the initial training program.

3.  Real Estate:  $6,000 to $20,000

  • You may purchase or lease or do a combined lease-purchase of the land and building for the Shoppe. Also the building may be either newly-constructed or renovated, and either free-standing or located in a mall or shopping center.
  • In certain instances, you may be able to get the landlord to contribute toward renovation or improvement of the real estate and also may be able to arrange to pay a lesser amount for rent in exchange for paying the landlord a percentage of sales from the Shoppe.
  • Real estate expenses (including, but not limited to, construction costs, impact fees, and broker commissions) will vary widely, depending on the geographic region, the site location, the size of the building, and other factors.

4.  Furniture, Fixtures, and Leasehold Improvements:  $25,000 to $50,000

  • This range includes the cost of kitchen and other equipment required for the Shoppe as well as required computer systems. The kitchen equipment consists of items such as ovens, mixers, refrigerators, freezers, trays, and utensils.
  • The estimated cost for the required computer systems includes hardware and software and, with respect to software, includes the $2,500 CBD POS Program Fee and the CBD POS Maintenance Fee (currently set at $300 per year).

5.  Kitchen Equipment, Computer Hardware, and Software:  $20,000 to $40,000

6.  Initial Inventory and Supplies (Food, Paper, and Merchandise) (3 months):  $7,000 to $12,000

7.  Business Licenses, Permits, etc. (first year):  $1,000 to $2,000

8.  Signage:  $2,500 to $6,000

  • The signage required for the Shoppe includes, in most cases, one building sign and interior signage.

9.  Insurance Premiums (for the first year) and Utility Deposits:  $3,000 to $7,000

10.  Architect, Engineer, and Other Professional Fees:  $2,000 to $5,000

  • You must hire an architect approved by the franchisor to adapt its standard plans and specifications to the site and to local and state laws, regulations, and ordinances.
  • An engineer ordinarily will be required only for new construction, surveying, soil tests, and electrical and mechanical engineering.
  • An architect or engineer also may be required to supervise the construction and improvements of the Shoppe premises.
  • You probably will also require accounting and legal services in connection with the signing of the agreements with the franchisor, and related matters in establishing the new business.

11.  Advertising and Promotion (3 months):  $3,000 to $10,000

12.  Additional Funds (3 months which include working capital):  $15,000 to $20,000

  • These estimates do not include managerial salaries or any payment to you. These estimates also do not take into account finance payments, charges, interest, and related costs you may incur if any portion of the initial investment is financed.
  • These amounts are the minimum recommended levels to cover operating expenses, including your employees’ salaries for three months. However, the franchisor cannot guarantee that those amounts will be sufficient.

13.  Totals:  $117,500 to $207,000

  • Additional working capital may be required if sales are low or fixed costs are high. The franchisor relied on its franchisees’ operating experiences in compiling these working capital estimates.



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