The DRIPBaR Franchise Costs Examined on Top Franchise Blog (2020 FDD)

Detailed Estimates of The DRIPBaR Franchise Costs Based on Item 7 (Estimated Initial Investment) of The DRIPBaR’s 2020 Franchise Disclosure Document

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: $1,000 to $7,500

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 $2,500

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: $5,000 to $10,000

5. Initial Inventory: $5,000 to $10,000

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: $7,200 to $36,000

This estimate includes the cost of purchasing a hood and other 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: $3,000 to $5,500

This estimate includes the cost of the computer system with one POS system in addition to other office costs.

8. Leasehold Improvements/Buildout: $12,000 to $72,000

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, the amount of which would depend on market conditions.

9. Architectural and Engineering Services: $0 to $10,000

10. Real Estate and Project Management Services: $10,000 to $15,000

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. Exterior Signage and Interior Graphics: $4,000 to $10,000

The business is generally outfitted with a sign which must be approved by The DRIPBaR. The estimated costs represent manufacture and installation.

12. Insurance: $500 to $1,000

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.

13. Permits and Licenses: $100 to $1,200

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. Accounting and Legal Fees: $2,000 to $4,000

15. Travel and Living Expenses While Training: $1,000 to $3,000

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: $116,300 to $272,700