Updated September 23, 2019.
Detailed Estimates of Le Macaron French Pastries Franchise Costs Based on Item 7 (Estimated Initial Investment) of Le Macaron French Pastries’ 2019 Franchise Disclosure Document
For Traditional Pastry Shop or Permanent Kiosk
1. Initial Franchise Fee: $33,000 to $45,000
2. Opening Assistance Fee: $5,000
- The initial franchise fee, opening fee, and development fee are considered fully earned and nonrefundable upon payment.
3. Lease Deposit, Utility Deposits, and Rent for 3 Months: $15,000 to $30,000
- For a traditional pastry shop location, you must purchase or lease commercial retail space with 800 to 1,000 commercial square feet of space.
- Commercial real estate costs vary greatly depending on the geographic location of the space and whether it is located downtown, in airports, in enclosed malls, or in dense specialty shopping areas.
- The figures in the chart reflect a security deposit equal to one month’s rent, utility deposits, plus base rent for the first three months, but do not include payment of common area maintenance charges or any other charges that may be imposed.
- For either type of kiosk, you will have to arrange for on-premises storage. Landlords typically include this as part of your rent payment.
4. Design and Architectural Fees: $6,000 to $12,000
- Design and architectural costs vary widely, depending upon the location, design, configuration, and condition of the premises, the condition and configuration of existing interior elevations, and floor plans.
- The figures in the chart represent the estimated cost of designing a shell location that does not yet include an adequate Pastry Shop floor plan, interior elevations, and construction drawings.
5. Leasehold Improvements: $5,000 to $100,000
- You may use a qualified general contractor of your choosing that Le Macaron approves.
- Construction and remodeling costs vary widely, depending upon the location, design, configuration, and condition of the premises; the condition and configuration of existing services and facilities such as mechanical, electrical, and plumbing; and the terms of your lease.
- The figures in the chart represent the estimated cost of building out a vanilla shell location that does not yet include an HVAC system, floor drains, restroom, ceiling, electrical panel, or natural gas service.
- You may receive a tenant finish-out allowance from the landlord which has not been accounted for in this figure.
6. Furniture and Fixtures: $15,000 to $25,000
- The figures in the chart represent the estimated costs of purchasing required furniture, fixtures, decor items, interior graphics, and audio/visual system required for your Le Macaron French Pastries Pastry Shop.
- For the permanent kiosk and mobile kiosk chart, this range represents the cost of designing, manufacturing, and delivering your kiosk.
7. Equipment: $17,000 to $50,000
- The figures in the chart represent the estimated costs of purchasing required freezers, refrigerators, refrigerated display cases, automatic espresso machine, a gelato refrigerated display case, and other related equipment required for your Le Macaron French Pastries Pastry Shop.
- For mobile kiosks, this range includes the costs of freezers.
8. Exterior and Interior Signage and Graphics: $1,000 to $8,000
9. Initial Macaron Inventory (plus other food and beverage products and initial supplies): $6,500 to $42,000
- The figures in the chart represent the estimated cost of purchasing the mandatory macaron products, plus additional food and beverage inventory and other miscellaneous items.
- The high range estimates that, for Pastry Shops located further from Le Macaron’s distribution center, the purchase of inventory will be for larger amounts than for those Pastry Shops located geographically nearer.
10. Liquor License: varies
- Le Macaron may grant some Pastry Shops the right to sell certain approved alcoholic beverages.
- For these locations, Le Macaron is unable to estimate the cost of your liquor license because of wide variations in costs depending on factors like location, the availability of liquor licenses, the ability to move a license, and the market value of liquor licenses.
11. Travel and Related Expenses While Training: $1,000 to $1,500
- The figures in the chart represent the estimated out-of-pocket costs (including travel to Sarasota, Florida and to and from the training site, one double-occupancy hotel room, and dining expenses) for two individuals to attend training.
12. Grand Opening Marketing: $3,000 to $4,000
- Le Macaron will consult with you and outline a marketing/public relations plan for your Pastry Shop’s Grand Opening. Such initial marketing and promotional activities will be conducted within 90 days of opening.
13. POS Software and Hardware: $1,000 to $1,500
- The figures in the chart for traditional pastry shops and permanent kiosks represent the cost of acquiring one POS system and the first annual maintenance and support services fee.
- The figures in the chart for mobile kiosks represent the cost of acquiring a card reader and a more space-efficient POS system.
14. Professional Services: $1,000 to $2,500
- The low figure assumes that you will operate the Franchised Business as a sole proprietor. The high figure represents the cost of hiring an attorney to assist with entity formation and in reviewing the franchise offering.
- The cost of professional services can vary widely.
15. Insurance: $1,500 to $3,500
- The figures in the chart represent an estimated down payment of your annual premiums, equal to one month’s payment, plus the first two monthly premium charges.
16. Government Permits and Licenses: $500 to $1,500
17. Additional Funds for 3 Months: $20,000 to $30,000
- The figures in the chart represent the additional funds, or working capital, you will likely need to operate the Pastry Shop during the initial three-month period.
- You may need these funds to pay fixed costs such as employee salaries, payroll taxes, telephone charges, license and permit fees, to purchase supplies, and to pay other expenses.
- Le Macaron estimates the start-up phase to be three months from the date you open for business.
- The figures in the chart do not include any allowance for debt service or for a salary for you.
- These figures are estimates only, and Le Macaron cannot assure you that you will not have additional expenses.
18. Total: $131,500 to $361,500
- All amounts are non-refundable unless otherwise noted.
- If you develop multiple Pastry Shops under an Area Development Agreement, Le Macaron anticipates that your initial investment for each Pastry Shop developed will be the same as is reflected in the above chart, subject to applicable inflationary increases.
For Mobile Kiosk
- Estimated Initial Investment: $84,350 to $147,000