Fuzzy’s Taco Shop Franchise Costs: Estimated Initial Investment (Item 7, 2022 FDD)

For Traditional Restaurant

1.  Initial Franchise Fee:  $40,000

• The initial franchise fee for a Traditional Restaurant will be $40,000. Lower initial franchise fees may be applicable to franchisees who have signed a previous Franchise Development Agreement.

2.  Rent, Security Deposits (1-2 months), Utility Deposits, and Business Licenses:  $10,000 to $20,000

• A typical Fuzzy’s Taco Shop occupies 3,000 to 4,000 square feet of commercial space.

• Security deposits generally are required by utilities, the landlord, and equipment leasing companies. Amounts will vary depending on various lease terms, utilities’ policies, and your credit rating.

• The requirements and costs of licensing to serve alcoholic beverages can also vary significantly.

• The figures in the chart assume a lease security deposit equal to one to two months’ rent.

3.  Architect and Design Fees:  $10,000 to $18,000

4.  Leasehold Improvements:  $252,000 to $530,000

• Construction and remodeling costs vary widely, depending upon the location, design, configuration, and condition of the Approved Location, the condition and configuration of existing services, any existing facilities such as air conditioning, electrical, and plumbing, and the terms of your lease.

• The estimates provided above assume that you will be finishing out an existing building, and will not be constructing a new building from the ground up. If you construct a new building, your costs may be considerably higher (the franchisor estimates no less than an additional $30,000 to $40,000).

• The cost of your leasehold improvements will also vary based on whether a commercial restaurant business previously operated at your premises (to be clear: this estimate does not include the estimated cost of purchasing an existing Fuzzy’s Taco Shop branded Restaurant from the franchisor or a franchisee, but rather the reduced cost that you may experience if a third-party commercial restaurant previously operated at that premises, as a result of which the premises may already be outfitted with certain restaurant-specific improvements).

• The low-end estimate above assumes you are converting an existing restaurant space to your Restaurant, the layout does not require material changes, and the premises already has HVAC, bathrooms, plumbing, electrical, and kitchen floor.

• The high-end estimate assumes that you are developing your Restaurant in a “cold dark shell” (including only walls and a floor), which did not previously operate as a commercial restaurant business, and which will require a full build-out, including HVAC, electrical, plumbing, and bathrooms and kitchen.

5.  Furniture, Fixtures, and Signage:  $44,000 to $95,000

6.  Equipment and Smallwares:  $112,500 to $267,000

• In addition to variances for freight, installation, prevailing rates for equipment in your area, and state and local taxes, the range for equipment will also vary based on whether a commercial restaurant business previously operated at your premises.

• The low-end estimate above assumes you are converting an existing restaurant space to your Restaurant, including that the premises already has a grease trap, hood, walk-in cooler, and certain useable kitchen equipment, such as hot/cold wells.

• The high-end estimate assumes that you are developing your Restaurant in a “cold dark shell” and that all furniture, fixtures, and equipment will be purchased new.

7.  Point-of-Sale, Computer, and Security Systems:  $32,000 to $46,100

8.  Office Equipment and Supplies:  $1,000 to $2,500

9.  Professional Fees:  $2,500 to $15,000

10.  Initial Sauce Inventory:  $400 to $600

11.  Other Initial Inventory:  $27,600 to $42,400

• This includes the costs of ordering inventory in the first 30 days of operation. This does not include the cost of initial inventory of proprietary sauce that you acquire from Fuzzy’s Retail, which is accounted for separately above.

12.  Insurance:  $12,000 to $25,000

13.  Pre-Opening Training Expenses:  $11,000 to $38,000

• The franchisor does not charge a fee for initial training for you or your Designated Manager and up to three of your employees, but you are responsible for all travel and living expenses for you and your employees in connection with training sessions.

• The estimate in the chart covers the estimated cost for travel, lodging, and meals for 6-8 weeks for you or your Designated Manager and up to three of your employees.

• The figures in the chart do not include wages and salaries for employees who attend the initial training program.

14.  Grand Opening Advertising:  $5,000 to $15,000

15.  Additional Funds (3 Months):  $20,000 to $70,000

• 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.

• The franchisor relied on its affiliates’ operating expenses in compiling these working capital estimates.

16.  Total:  $580,000 to $1,224,600

• Unless otherwise noted, all amounts are non-refundable.

• Neither the franchisor nor its affiliates finance any part of your initial investment.

For Taqueria Restaurant

• Total Estimated Initial Investment:  $370,500 to $734,000