Detailed Estimates of Cold Stone Creamery Franchise Costs Based on Item 7 (Estimated Initial Investment) of Cold Stone Creamery’s 2019 Franchise Disclosure Document
For Traditional Restaurant
1. Initial Franchise Fee: $12,000 to $27,000
- The Initial Franchise Fee includes the training fee for two individuals.
2. Rent/Security Deposit for 3 Months: $2,500 to $26,000
- If you do not own a suitable premises approved by Cold Stone Creamery, you must lease or purchase the premises for your Cold Stone Creamery restaurant.
- If you decide to lease the premises, the landlord will generally require a security deposit, the amount of which generally ranges from one month of monthly rent to six months of monthly rent. The amount of your security deposit will vary according to your area, the type of location (enclosed mall, strip center, or free-standing building), and various other factors. A lease security deposit may be non-refundable and is paid directly to the landlord of the premises.
- If you decide to purchase land and construct your own building or buy an existing building, you can expect to add the cost of the real estate and costs of building to the total investment. Real estate costs vary considerably depending on fair market values in your area; size, condition, and location of the premises; and municipal requirements.
3. Travel and Living Expenses (2 Persons) While Training, Not Including Salaries, if Any, for You and Your Employees: $3,000 to $7,500
4. Lease Review Fee: $0 to $2,500
5. Architectural Fees:
6. Leasehold Improvements: $88,000 to $200,000
- The landlord may provide some leasehold improvements, but if not, they will be at your expense. The total amount of leasehold improvements for your Cold Stone Creamery restaurant will vary greatly, depending on the type of premises for your restaurant (pad site with drive-thru on the high end versus modular kiosk or retrofitted existing restaurant on the low end), condition of the premises, and what improvements you require.
- These estimates are based on constructing a 1,400 square foot vanilla shell for a traditional location or a 600 square foot vanilla shell for a nontraditional location, electrical requirements of 400 amps 3-phase, and HVAC of one ton per 150 square feet.
- This amount is based upon a national average for labor costs and does not include extensive renovations. Construction costs also vary considerably depending on fair market values in your area; size, condition, and location of the premises; labor costs (union versus non-union); and equipment requirements.
- The typical traditional Cold Stone Creamery restaurant is 1,400 square feet. The minimum square footage needed to establish your Cold Stone Creamery restaurant is approximately 100-1,200 square feet for a non-traditional restaurant.
- There is a wide range of probable locations that a Cold Stone Creamery restaurant could be in, and therefore, a wide range for the approximate size of the property and building.
- Typical locations for a traditional restaurant are strip shopping centers, lifestyle centers, business centers, regional centers, malls, or downtown areas that could range in size from 1,000 square feet for a stand-alone location to over one million square feet for a large regional shopping mall.
- Typical locations for a non-traditional restaurant are airports, shopping malls, kiosks, convenience stores, malls, stadiums, entertainment pavilions, amusement parks, sports or entertainment venues, train stations, travel plazas, toll roads, cafeterias, retail stores, military bases, hospitals, hotels, casinos, and high school and college campuses.
7. Exterior Signage: $9,700 to $12,000
8. Equipment: $99,000 to $130,000
- This amount includes estimated costs of furniture, furnishings, installations, equipment, trade fixtures, and certain other items on the restaurant premises, the amount and specific items of which will vary depending upon the location, size, and condition of a particular restaurant.
- You must purchase restaurant equipment for your Co-Branded Restaurant from approved vendors according to Cold Stone Creamery’s specifications.
9. PCI Compliance Costs: $150 to $1,300
10. Opening Inventory: $8,000
- As with any retail business, you will purchase inventory continuously as long as you operate your Cold Stone Creamery restaurant.
11. Employee Uniforms: $500 to $800
12. Grand Opening Marketing Advertising: $10,000
- You are required to pay a Grand Opening Marketing fee of $10,000 for a Traditional store or $5,000 for a Non-Traditional store payable to Cold Stone Creamery on the earlier of (i) prior to you executing a lease for the premises where the Franchised Business will be located; or (ii) prior to construction commencing at the premises where the Franchised Business will be located.
- Cold Stone Creamery or its designated affiliate will use the Grand Opening Marketing to pay for the grand opening and initial advertising, but may, in its sole discretion, reimburse you for some local store marketing expenses that you pay if you received Cold Stone Creamery’s prior approval.
- The Grand Opening Marketing should be used within 6 months of the opening of your Franchised Business to the public. However, if a portion of the Grand Opening Marketing is not used within those 6 months, Cold Stone Creamery may, in its discretion, spend the remaining portion of the Grand Opening Marketing after 6 months from the opening of your Franchised Business to the public.
13. Insurance Premiums: $500 to $2,500
- Initial premiums for commercial general liability insurance are subject to change due to market forces beyond either of your or Cold Stone Creamery’s control. The cost of other coverages, including workers’ compensation and employer liability coverage and your discretionary purchases, varies widely.
14. Permits and Licenses: $2,000 to $3,000
15. Telephone and Utility Deposits and Hookups: $250 to $1,000
- The telephone and utility deposits will generally be refundable in accordance with the terms fixed by the telephone company and the utility companies, respectively.
16. Computer Training and Food Safety Certification Course: $100 to $250
17. Miscellaneous: $3,925
- Miscellaneous expenses include pre-opening employee training payroll, petty cash (including cash register “opening banks”), security system, interior/exterior landscaping, sound system, banking pre-opening costs, accountants, lawyers, office supplies, fees, and expenses of incorporation and initial pest control fee.
18. Depository Account: $3,000
- At the time you sign the Franchise Agreement, you will set up a depository account of $3,000 with your local banking institution. You are required to maintain a balance of $3,000 in this account at all times.
19. Additional Funds – 3-Month Initial Period: $20,000
- Cash flow from your operations may not be adequate to cover operating and other costs during the initial phase of business. The range shown estimates your expenses during the first three months of operation. These expenses include payroll costs (excluding any wage or salary paid to you), other miscellaneous expenses, and working capital.
- Cold Stone Creamery cannot guarantee that you will not have additional expenses starting the business.
20. Total: $266,625 to $468,775
For Non-Traditional Location
- Total Estimated Initial Investment: $53,200 to $386,775
- Total Estimated Initial Investment: $113,750 to $219,150