• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Menu
  • Home
  • About
    • About Franchise Chatter
    • Contact
    • Privacy Policy
    • Terms of Service
    • Affiliate Disclosures
  • Subscribers Hub
    • Login
    • New to Franchise Chatter? Start Here
    • America’s Most Lucrative Franchises
    • Franchises Ranked by Average Revenues
    • Franchises Ranked by Average Profits
    • Franchise Winners, Survivors and Losers Last Year
    • FDD Talk
    • Search by Name
  • Top Franchises
  • Franchise Earnings
  • Costs
  • Fees
  • Quiz
  • Search

Franchise Costs: Detailed Estimates of Cereality Franchise Costs (2015 FDD)

Published on March 20, 2016 by Franchise Chatter Leave a Comment
in Breakfast Franchise, Franchise Costs, Snack Franchise

Cereality Photo by Soctech



Learn Which Franchises Can Make You Rich

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

For a Traditional Restaurant (Located Within a Shopping Mall, Strip Center, or Similar Venue)

1.  Initial Franchise Fee:  $14,000 to $30,000

  • The initial franchise fee is $30,000 for your first and second traditional Cereality franchise, and is reduced to $17,500 for your third and all subsequent traditional Cereality franchises.
  • If you are currently an active or active reserve member of the U.S. Armed Forces, have been honorably discharged from the U.S. Armed Forces, or are a 501(c)(3) organization, you will receive a 20% discount on the Initial Franchise Fee.
  • The Initial Franchise Fee includes the training fee for two individuals.

2.  Lease Review Fee:  $0 to $1,250

  • A $1,250 Lease Review Fee shall be paid by you to Kahala Franchising (the franchisor) upon your request to Kahala Management’s real estate department to review your entire unexecuted lease and provide any suggested changes (this is an optional service, with the determination of whether to utilize Kahala Management’s real estate department to be made in your sole discretion).

3.  Rent/Security Deposit (for 3 Months):  $6,000 to $30,000

America's Most Lucrative Franchises of the Year

4.  Travel and Living Expenses (for 2 Persons) While Training (Not Including Salaries, If Any, for You and Your Employees):  $2,500 to $5,000

5.  Real Estate:  Amount Not Specified

  • The minimum square footage needed to establish your Cereality restaurant is approximately 1,200 to 1,500 square feet for a traditional restaurant.

6.  Architectural and Project Management Fees:  $5,000 to $9,500

  • You must, at your own cost and expense, use the franchisor’s designated and approved third-party design architect to prepare the initial design drawings for your Franchised Business.

7.  Leasehold Improvements:  $25,000 to $125,000

  • The landlord may provide some leasehold improvements, but if not, they will be at your expense. The total amount of leasehold improvements will vary greatly, depending on the type of premises for your restaurant (pad site with drive-thru on the high end, versus modular kiosk or retrofitted existing restaurant on the low end), condition of the premises, and what improvements you require.

8.  Restaurant Equipment, Furniture, and Small Wares:  $50,000 to $75,000


🎯Find Good Franchises That Are Still AVAILABLE in Your Target Area (Free Tool)



🚀How to Find, Vet & FUND a Good Franchise. Watch Our Webinar Live or the Recording Later (Register Now – It's Free)



💰How Much Franchise Can You AFFORD? Use Our Free Financial Calculator


  • This amount includes estimated costs of furniture, furnishings, installations, equipment, trade fixtures, and certain other items on the restaurant premises, the amount and specific items of which will vary depending upon the location, size, and condition of a particular restaurant.

9.  Interior and Exterior Signage and Menu Panels:  $3,000 to $20,000

10.  Computer Hardware, Software (POS System):  $10,000 to $20,000

11.  PCI Compliance Costs:  $150 to $1,300

12.  Opening Inventory (Food and Paper):  $2,500 to $5,000

  • As with any retail business, you will purchase inventory continuously as long as you operate your Cereality restaurant.

13.  Business Insurance:  $1,000 to $5,000

Franchises Ranked by Average Profits
  • You must provide commercial general liability insurance in minimum liability limits of $1,000,000 (or greater, if applicable state laws or regulations require) for each occurrence and with an aggregate of not less than $2,000,000, and maintain other insurance in accordance with state law requirements.

14.  Miscellaneous Opening Costs:  $4,750 to $15,500

15.  Grand Opening:  $0 to $5,000

  • You may be required, depending on the location of your Cereality restaurant, to conduct a grand opening advertising campaign with the opening of your restaurant. You must pay all costs of the grand opening, including publicity costs and promotional costs, plus the full cost of any price reductions or other customer inducements.

16.  Depository Account:  $3,000

  • At the time you sign the Franchise Agreement, you will set up a depository account of $3,000 with your local banking institution. You are required to maintain a balance of $3,000 in this account at all times. This will mean that you must replenish the depository account of $3,000 after Kahala Franchising makes any withdrawals.
  • Kahala Franchising will withdraw funds electronically on each Wednesday from the depository account. The withdrawals are based upon the figures you report and constitute Royalty Fees and Advertising Fees.

17.  Additional Funds – 3 Month Initial Period:  $5,000 to $15,000

  • The range shown estimates your expenses during the first three months of operation. These expenses include payroll costs (excluding any wage or salary paid to you), other miscellaneous expenses, and working capital.

18.  Total:  $131,900 to $365,550

  • These estimated ranges are based on the franchisor’s experience and information provided by franchisees.

🎯Find Good Franchises That Are Still AVAILABLE in Your Target Area (Free Tool)



🚀How to Find, Vet & FUND a Good Franchise. Watch Our Webinar Live or the Recording Later (Register Now – It's Free)



💰How Much Franchise Can You AFFORD? Use Our Free Financial Calculator



Franchises Ranked by Average Revenues and Profits



Franchise Winners and Losers Last Year

Tagged as: Cereality

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous post: The Art of Selling for Smaller Franchised Businesses (Q&A with Diane Emo, VP of Marketing for Coverall North America)

Next post: FDD Talk: The Chem-Dry Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

Primary Sidebar

🚀How to Find, Vet and FUND a Good Franchise (Webinar)

✅ Is Franchising a Path for You? – Apr. 7 (Fri.), 11 a.m. EST

✅ Popular Trends in Franchising – Apr. 11 (Tues.), 4 p.m. EST

✅ Register Now to Get Free Access to Recordings of Both Webinars

Register Now

🤔Buying a Franchise on Your Own Can Be Overwhelming

✅ Get the guidance and support you need every step of the way (including funding 💵) from an experienced franchise broker at no cost to you.

✅ Fill out this form and a specialist from the Franchise Brokers Association will reach out to you.

⭐️Franchise Chatter is reader-supported. We may receive a commission for leads generated from our site.

As seen in:  New York Times, Bloomberg Businessweek, and CNBC

Login

Remember Me
Register | Lost your Password?
Reminder: Your username and password are case-sensitive.

Need help? Email franchisechatterblog@gmail.com

👍”Your website and you have been instrumental in finding this franchise opportunity and I am overwhelmingly grateful.” (David F., subscriber)

🏆 Best Franchises by Industry

Best Franchises by Industry (All Lists)

Best Gym and Fitness Franchises

Best Pizza Franchises

Best Sandwich Franchises

Best Childcare Franchises

Best Ice Cream Franchises

Best Coffee Franchises

Best Hamburger Franchises

Best Salon and Beauty Franchises

Best Chicken Franchises

Best Smoothie and Juice Franchises

Best Maid Service Franchises

Best Mexican Restaurant Franchises

Best Massage Service Franchises

Best Tutoring Franchises

Best Auto Repair Franchises

Best Auto Oil Change Franchises

Best Asian Restaurant Franchises

Best Pet Franchises

Best Commercial Cleaning Franchises

Best Sports Bar Franchises

Best Baked Goods Franchises

Best Moving/Junk Removal Franchises

Best Mailbox Franchises

Best Apparel Retail Franchises

Best Senior Care Franchises

Best Restoration Franchises

Best Tech Franchises

Best Travel Agency Franchises

Best Trampoline Park Franchises

Best Tools Distribution Franchises

Best Property Management Franchises

Best Real Estate Franchises

Best Automotive Wheels and Tires Franchises

Best Weight Loss Franchises

Best Flooring Franchises

Best Eye Care Franchises

Best Physical Therapy Franchises

Best CBD Franchises

Best Tea Franchises

Best Ghost Kitchen Franchises

Best Acai Bowl Franchises

Best Poké Bowl Franchises

Best Donut Franchises

Best Kitchen and Bath Remodeling Franchises

Best Window Coverings Franchises

Best Plumbing Franchises

Best Home Inspection Franchises

Best Garage Franchises

Best Barbershop Franchises

Best Laundromat Franchises

Best Storage Unit Franchises

Best Car Wash Service Franchises

🚀 Daily FDD Talk Posts

Best Choice Roofing Franchise

LIME Painting Franchise

milliCare Franchise

One Hour Heating & Air Conditioning Franchise

PatchMaster Franchise

Spray Foam Genie Franchise

Bumble Bee Blinds Franchise

Mr. Sandless Franchise

EverLine Coatings Franchise

Blue Kangaroo Packoutz Franchise

Tommy’s Express Car Wash Franchise

Footprints Floors Franchise

Wendy’s Franchise

Clean Juice Franchise

Nurse Next Door Franchise

Made in the Shade Blinds & More Franchise

Five Star Bath Solutions Franchise

Beef ‘O’ Brady’s Franchise

Costa Vida Fresh Mexican Grill Franchise

Uptown Cheapskate Franchise

Pancheros Mexican Grill Franchise

Squeeze Franchise

Mosquito Squad Franchise

The Exercise Coach Franchise

ProLift Garage Doors Franchise

Heroes Lawn Care Franchise

Burn Boot Camp Franchise

Wing Zone Franchise

DreamMaker Bath & Kitchen Franchise

The Camp Transformation Center Franchise

Brightway Insurance Franchise

Owl Be There Franchise

The Dog Wizard Franchise

Scenthound Franchise

Bin There Dump That Franchise

Gotcha Covered Franchise

Phenix Salon Suites Franchise

AKT Franchise

Kitchen Solvers Franchise

FASTSIGNS Franchise

Zoom Drain Franchise

Pool Scouts Franchise

Ace Hardware Franchise

Signarama Franchise

Jovie Franchise

i9 Sports Franchise

UFC Gym Franchise

Sola Salons Franchise

N-Hance Wood Refinishing Franchise

Cost Cutters Franchise

Ziggi’s Coffee Franchise

Franchise Chatter © 2023