Cousins Subs Franchise Costs: Estimated Initial Investment (Item 7, 2021 FDD)

Benchmark:  2,000 to 2,400 Square Feet

1.  Initial Franchise Fee:  $25,000

• If you paid an application deposit, Cousins will apply the deposit to the initial franchise fee.

• If you are purchasing additional franchises, the initial franchise fee is $17,500 for each additional Cousins Subs Shop.

2.  Leasehold Improvements:  $55,000 to $245,000

• The cost of construction, leasehold improvements, and fixtures depend upon many variables, including size and condition of the premises, local construction costs, landlord requirements, union or non-union labor rates, and geographic location of the Shop.

• The size of the space is a significant determinant of total construction costs.

• The range of figures is the cost of reasonable renovations or leasehold improvements from a “white box” condition and may be less if the lessor provides a construction allowance to lessee.

3.  Equipment and Small Wares:  $50,000 to $141,000

• The equipment needed is listed in the Confidential Operations Manual and includes baking and microwave ovens, food warmers, slicers, freezer, refrigeration equipment, shelving, work tables, computer and printer, digital menu board, and other items.

• You may purchase or lease approved brands and models from approved suppliers.

• The cost of the equipment will depend on financing terms available, the size of the facility, brands purchased, and other factors.

4.  Seating Package/Millwork:  $30,000 to $75,000

• This estimate includes the tables, chairs, booths, counter, and beverage area.

5.  Initial Inventory and Supplies:  $3,000 to $8,000

• Your initial inventory must be purchased from designated sources or approved suppliers. Initial inventory consists of various food products, beverages, paper products, cleaning supplies, condiments, and other supplies utilized in the operation of the Shop.

• The initial inventory expenditure will vary according to anticipated sales volume and current market prices for these items.

6.  Point-of-Sale System/Technology:  $10,000 to $30,000

• The estimate includes a personal computer, the point-of-sale system, a printer, and the software required by Cousins.

7.  Architectural Fees:  $4,500 to $52,000

• Architectural fees shown are based on design/build drawings. The remodeling plans or construction plans of each location vary due to the amount of remodeling or type of construction to be performed and the market area for which the plans are produced.

• The estimate is based upon Cousins’ experience for a variety of remodeling and construction plans.

• Architectural fees may be reduced under a design/build arrangement with a general contractor, or may increase if stamped mechanical drawings are required. Both municipal requirements and space size also affect the total cost.

8.  Rent:  $3,000 to $15,000

• Rent expense for space in which to operate a Shop will vary, based on numerous factors including the market area, age and type of structure, and lease arrangements.

• A Shop may be located in a freestanding building, a strip center, a convenience store, or various non-traditional facilities such as a school, airport, sports arena, shopping mall food court, non-traditional store, etc.

• Non-traditional facility and convenience store operations will be approximately 600 to 1,000 square feet, and the costs for these outlets could be substantially less.

9.  Lease and Utility Security Deposits:  $0 to $15,000

• Lessor and utility companies may require that you place a deposit prior to occupation of the premises and prior to installing telephone, gas, electricity, and related utility services.

• These deposits may be refundable based upon the agreements made with the lessor and utility companies.

10.  Insurance:  $700 to $1,500

11.  Training:  $2,500 to $10,000

• You are responsible for arranging transportation and paying the expenses for meals and lodging for persons attending the initial training program.

• The amount expended will depend on the distance you must travel, the type of accommodation you choose, and the number of persons attending training.

• The estimate also includes a third-party fee for participation in a supplemental online training course on financial tools.

• No additional payments are made to Cousins for the initial training programs.

12.  Store Marketing Fee:  $10,000

13.  Lease Addendum Review Fee:  $0 to $2,000

14.  Signage:  $6,500 to $53,000

• Signage includes interior and exterior signs that bear the service marks licensed to you.

• The cost of signage may vary depending on the type, size, and location of the signs, and may also be affected by applicable city code and landlord restrictions. Freestanding signs can add substantial amounts to the total cost.

15.  Additional Funds – 3 Months:  $20,000 to $50,000

• The additional funds represent working capital that will be used to cover operating expenses, including employee wages (which may vary significantly based on the operations of the Shop and the prevailing minimum wage rate in your jurisdiction), during your Shop’s initial phase.

16.  Total:  $220,200 to $732,500

• These estimates are based upon over 45 years of experience by Cousins and its affiliates in operating Cousins Subs Shops or similar restaurant operations, and are based on a benchmark space of 2,000 to 2,400 square feet.

• Cousins does not offer direct or indirect financing to franchisees for any items.