The DRIPBaR Franchise Costs: Estimated Initial Investment (Item 7, 2023 FDD)
- Except as otherwise provided, none of the amounts payable to The DRIPBaR or its affiliates in this table are refundable under any circumstances. All amounts payable to third parties will be paid pursuant to the terms of your agreement with those respective third parties.
1. Initial Franchise Fee: $50,000 to $55,000
2. Lease Deposit and Payment: $2,500 to $5,000
- Your landlord may require a lease deposit and will typically require monthly rent in advance. Rent will vary depending upon the location of the premises and other related factors. The prepaid rent is usually nonrefundable, but that will ultimately be determined by the terms of the lease.
- The improved space for a new franchised business is between 1,000 to 1,500 square feet.
- The DRIPBaR anticipates that you will rent the location’s premises. It is possible, however, that you will choose to buy, rather than rent, real estate on which a building suitable for the business already is constructed or could be constructed. Real estate costs depend on location, size, visibility, economic conditions, accessibility, competitive market conditions, and the type of ownership interest you are buying.
3. Utility Deposits: $500 to $1,000
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Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Most utilities, such as local water, sewer, gas, electric, and telephone companies, require deposits prior to initial services.
- The DRIPBaR has estimated the low-end range at $0 because, in some instances, you may be able to sign a lease with utilities included within the monthly rent expenses or negotiate for free utilities for a certain period of time.
4. Grand Opening Marketing: $6,500 to $11,500
5. Initial Inventory: $5,000 to $6,000
- The initial inventory will include vitamins, supplies, and supplements. Due to differences in local laws, prices, suppliers, geography, and commercial practices, you may elect to carry a larger inventory.
- The cost of your opening supplies and inventory will depend on the brands purchased, local costs, and other factors.
6. Furniture, Fixtures, and Equipment: $10,000 to $50,000
- This estimate includes the cost of purchasing required equipment. The estimated costs include purchase price, delivery, and installation. The low end estimates financing for the equipment as opposed to purchasing it outright.
7. Computers and Office: $1,500 to $3,000
- This estimate includes the cost of the computer system with one POS system in addition to other office costs.
8. Leasehold Improvements/Buildout: $25,000 to $200,000
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
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- Leasehold improvement costs, including floor covering, wall treatment, counters, ceilings, painting, window coverings, electrical, carpentry and similar work, architect’s and contractor’s fees, depend on various factors, including: (i) the site’s condition, location, and size; (ii) the demand for the site among prospective lessees; (iii) the site’s previous use; the build-out required to conform the site for your location; and (iv) any construction or other allowances the landlord grants.
- The lower figures provided here under “Leasehold Improvements” assume that you remodel an existing building that has previously been utilized as a restaurant. Construction of a new building on a pad site or otherwise likely would require a greater initial investment than what DRIPBaR has accounted for and would therefore depend on market conditions.
9. Architectural and Engineering Services: $8,400 to $11,000
10. Retail and Promotional Inventory: $2,000 to $5,000
- Your location may be converted from an existing medical office or similar space. The DRIPBaR will provide you with plans or blueprints for the layout of a typical outlet; however, you will be required to work with a licensed architect to build out your location.
- The DRIPBaR has estimated the low-end range at $0 because, depending on your location, the services of a licensed architect or engineer may not be necessary.
11. Signage: $12,000 to $18,000
- The business is generally outfitted with a sign which must be approved by The DRIPBaR. The estimated costs represent manufacture and installation.
12. Business Insurance: $1,125 to $2,500
- You must obtain and maintain on a primary and non-contributory basis at least a commercial general liability policy, commercial automobile liability policy, commercial property liability policy, workers’ compensation/employer’s liability policy, umbrella liability policy, employment practices liability policy, and cyber and privacy policy.
- The DRIPBaR estimates that you will incur these charges on a monthly basis.
13. Permits and Licenses: $100 to $800
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- This amount reflects the estimated fees you will pay to apply for various permits and licenses, such as building permits, sales tax permits, incorporation fees, fire inspection fees, and health department inspection fees. The application and fees required will depend upon the regulations of the governing agencies in your area.
14. Professional Fees: $2,500 to $5,000
15. Travel and Living Expenses While Training: $0 to $1,000
- These expenses include the cost of transportation, meals, accommodations, and similar expenses associated with the attendance of 2 people at the required initial training.
16. Additional Funds for 3 Months: $15,000 to $30,000
- This is an estimate of anticipated working capital that will be required during the first 3 months of operating your franchised business. This is only an estimate and The DRIPBaR cannot assure you that you will not incur additional expenses during the period.
- The DRIPBaR’s estimates do not include salary or compensation to you as the owner and operator of your franchised business and, accordingly, you must account for personal funds that you will require.
- The DRIPBaR has relied on the experience of its affiliate-owned locations in making this estimate.
17. Total: $142,125 to $404,800
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