This post was updated on December 30, 2016 to reflect information from Fuzzy’s Taco Shop’s 2016 FDD (Item 7).
Detailed Estimates of Fuzzy’s Taco Shop Franchise Costs Based on Item 7 (Estimated Initial Investment) of Fuzzy’s Taco Shop’s 2016 Franchise Disclosure Document
1. Initial Franchise Fee: $25,000 to $35,000
- When you sign a Franchise Agreement, you will pay to the franchisor a $35,000 initial franchise fee if you are developing your first Restaurant, $30,000 if you are developing your second Restaurant, and $25,000 if you are developing your third or subsequent Restaurant.
- The initial franchise fee is considered fully earned and nonrefundable upon payment.
2. Rent, Utility, Security Deposits, and Business Licenses: $13,000 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 $14,000
4. Leasehold Improvements: $75,000 to $500,000
- 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.
5. Furniture, Fixtures, and Signage: $35,000 to $75,000
6. Equipment and Smallwares: $75,000 to $160,000
7. Point-of-Sale, Computer, and Security Systems: $20,000 to $40,000
8. Office Equipment and Supplies: $2,500 to $5,500
9. Professional Fees: $2,500 to $7,500
10. Initial Inventory: $8,000 to $28,000
- Assumes sufficient inventory to operate for 30 days.
11. Insurance: $12,000 to $20,000
12. Pre-Opening Training Expenses: $12,000 to $40,000
- 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.
13. Grand Opening Advertising: $5,000 to $15,000
14. Additional Funds (3 Months): $40,000 to $75,000
- 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. Additional working capital may be required if sales are low or fixed costs are high.
- The franchisor relied on its affiliates’ operating expenses in compiling these working capital estimates.
15. Total: $335,000 to $1,035,000
- Unless otherwise noted, all amounts are non-refundable.
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