Detailed Estimates of Buffalo Wings & Rings Franchise Costs Based on Item 7 (Estimated Initial Investment) of Buffalo Wings & Rings’ 2017 Franchise Disclosure Document
Free Standing Building
1. Initial Franchise Fee: $20,000 to $40,000
2. Building/Leasehold Improvements: $600,000 to $700,000
- The costs for leasehold improvements will vary depending upon several factors, including the geographic location of your Franchised Restaurant, the size of the premises (Buffalo Wings & Rings’ estimates are based on a location of approximately 6,000 square feet for in-line space and approximately 6,000 square feet for free standing), the availability and cost of labor and materials, the condition of the premises, and the work that the landlord will perform as the result of lease negotiations.
- Landlords may, instead of performing some of the work, provide you with credit toward your future rent payments and/or a tenant improvement allowance.
- Buffalo Wings & Rings will provide standard plans and specifications for the design and configuration of a prototype Buffalo Wings & Rings restaurant to the approved architect. You will be responsible for adapting the prototype plans to your particular location, complying with all laws applicable to the site (such as the Americans with Disabilities Act), and obtaining all zoning clearances and building permits and certificates.
- The figures are based upon a landlord contribution of $20 per sq. ft. of tenant improvements.
3. Furniture, Fixtures, and Equipment: $350,000 to $450,000
4. Point-of-Sale (POS) System: $30,000 to $40,000
5. Signage: $30,000 to $55,000
- Signage includes exterior signs and awnings that bear the company’s proprietary marks.
- The cost of signage and awnings will vary depending upon the type, size, and location of the signs and awnings, and may also be affected by local restrictions.
- You will be required to erect or affix an exterior sign and awning to the Franchised Restaurant and a free standing sign near the road on which the Franchised Restaurant is located.
6. Television and Related Equipment: $125,000 to $150,000
7. Miscellaneous Opening Costs: varies
- Includes carry out menus, uniforms, safe, computer, office supplies, and security deposits, etc.
8. Training (Travel, Living Expenses, and In-Store Training): $27,500 to $45,000
- Buffalo Wings & Rings does not charge an additional fee for the initial training, but you must pay the expenses of travel, lodging, food, wages, and workers’ compensation for you and your employees during the training program.
- These expenses will vary depending upon the number of persons attending training, the distance and method of travel, the availability and quality of your hotel and restaurant accommodations, and living expenses during the training program.
9. Professional Fees: $20,000 to $30,000
10. Alcoholic Beverage License: varies
11. Insurance: varies
12. Opening Inventory: $30,000 to $40,000
13. Grand Opening Advertising: $10,000 to $12,000
14. Additional Funds – 3 Months: $50,000 to $125,000
- You should have approximately $50,000 to $125,000 of additional funds for such expenses as payroll costs and working capital for the first 3 months of operation.
- These figures are estimates and Buffalo Wings & Rings cannot guarantee that you will not have additional expenses when starting the business.
- This estimate does not provide for an owner’s draw.
- You must have additional monies available, whether in cash or through a line of credit, or have other assets which you may liquidate, or against which you can borrow, to cover your personal living expenses and any operation losses sustained during the start-up and development stage of your business.
- The amount of necessary reserves will vary greatly from franchisee to franchisee depending upon many factors including your personal requirements; the Net Sales and success of your business, which will be affected by how much you follow Buffalo Wings & Rings methods and procedures; your management skill, experience, and business acumen; local economic conditions; the local market for Buffalo Wings & Rings menu items; and competition.
- You may also incur expenses for business license fees, legal fees, accounting fees, and local permits and operating authorizations necessary to start your business, which may vary considerably from one area to another.
15. Land and Site Improvements: varies
- The costs for site improvements will vary depending upon several factors, including the geographic location of your Franchised Restaurant, the size of the premises, the condition of the land, availability of utilities, and planning and zoning regulations. These figures include site work, parking lot, lighting, landscaping, impact fees, and utility hook up.
16. Building Structure: $620,000 to $720,000
17. Total: $1,932,500 to $2,407,000
- The total figures listed in the above chart does not include cost of land, an owner’s draw, compensation for your time or labor, or real estate costs, and may not include the full cost of an alcoholic beverage license.
- Nor do the total figures take into account any finance charges, interest, debt service obligation, or the costs that you may incur to finance all or any portion of your investment.
- In addition to the initial investment itemized in the chart above, you must have additional monies available, whether in cash or through a line of credit, or have other assets that you may liquidate, or against which you can borrow, to cover your personal living expenses and any operating losses sustained during the start-up and development stage of your business.
- Buffalo Wings & Rings does not offer direct or indirect financing to franchisees for any item.
- The availability and terms of financing will depend upon your creditworthiness, collateral that you may have, and the lending policies of financial institutions.
- The total estimated initial investment necessary to begin operation of a Buffalo Wings & Rings restaurant in an in-line space ranges from $1,292,500 to $1,707,000.