Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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Franchise Costs: Detailed Estimates of Ben’s Soft Pretzels Franchise Costs (2016 FDD)

by Franchise Chatter on April 8, 2016

in Franchise Costs, Pretzel Franchise

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This post was updated on December 27, 2016 to reflect information from Ben’s Soft Pretzels’ 2016 FDD (Item 7).

Detailed Estimates of Ben’s Soft Pretzels Franchise Costs Based on Item 7 (Estimated Initial Investment) of Ben’s Soft Pretzels’ 2016 Franchise Disclosure Document

1.  Initial Franchise Fee:  $25,000 to $30,000

  • The initial franchise fee is $30,000. For an additional franchise, the initial franchise fee is $25,000.
  • For an honorably discharged veteran, the initial franchise fee is $15,000 for a first franchise and $10,000 for an additional franchise.

2.  Travel and Living Expenses During Training:  $1,000 to $10,000

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

4.  Business Insurance:  $1,000 to $4,000

5.  Professional Fees:  $5,000 to $10,000

  • Accountant, attorney, and architect fees are included. The franchisor requires that you have CAD drawings and 2D development of your space.

6.  Initial Inventory:  $5,000 to $12,000

7.  Security Deposit:  $2,500 to $12,000

8.  First Month’s Rent:  $1,500 to $6,000

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

10.  Equipment:  $27,500 to $65,000

11.  Signage:  $1,000 to $5,000

12.  Furniture and Fixtures:  $2,000 to $5,000

13.  Business Licenses and Permits:  $500 to $2,000

14.  Grand Opening Advertising:  $1,000 to $5,000

15.  Additional Funds for First 3 Months:  $20,000 to $40,000

  • This item estimates your initial start-up expenses. These expenses do not include any draw or salary for you nor any repayment of debt obligations. These figures are estimates and the franchisor cannot guarantee that you will not have additional expenses starting the business.
  • Your costs will depend on factors such as:
  • how thoroughly you follow the franchisor’s methods and procedures;
  • your personal discipline, dedication, and commitment;
  • your sales ability;
  • your management skill, experience, and business acumen;
  • local economic competition;
  • the local market for your products and services;
  • the prevailing wage rate;
  • advertising expenditures;
  • competition; and
  • the sales level reached during the initial period.
  • These estimates are provided solely to indicate possible working capital requirements and the franchisor makes no representation that any franchise will experience these costs.
  • The franchisor relied on its officers’ pretzel store experience since 2008 to compile these estimates.

16.  Total:  $118,500 to $332,000

  • The franchisor does not generally offer financing directly or indirectly for any part of the initial investment. It does recommend lenders and attempt to introduce you to them.
  • The availability and terms of financing will depend on factors such as the availability of financing generally, your creditworthiness, collateral you may have, and lending policies of financing institutions.
  • Amounts paid to the franchisor or the Advertising Fund are not refundable. Amounts paid to others may not be refundable.

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