Rocky Mountain Chocolate Factory Franchise Costs: Estimated Initial Investment (Item 7, 2021 FDD)

1. Initial Franchise Fee: $5,000 to $35,000

2. Real Estate and Improvements: $86,000 to $211,000

Real estate costs vary widely from location to location, and the franchisor may not be including all of your real estate expenditures in these estimates.

First, you must purchase or lease retail space that meets the franchisor’s standards and specifications.

The franchisor may require you to hire a professional to negotiate the lease for your Franchised Location and you must pay the professional’s fees, or you may hire your own professional provided that certain provisions the franchisor requires are included in the lease. The franchisor has included an estimated amount for these fees in the high number.

Space requirements for full-sized Stores average approximately 1,000 total square feet with 650 retail square feet, but the exact size will result in cost variances to you.

Your costs to improve the Franchised Location will depend in part on whether your space is completely constructed, or is the remodel of an existing space. It will also depend on the size of the space, the overall costs in the market, and the type of retail environment in which the Store is located.

The franchisor assists you in determining which of the two different full-sized Store configurations will suit your Franchised Location.

You must hire an architect to design your Store layout according to the company’s specifications and submit a plan to the franchisor for its prior approval. Architect fees depend on the condition of the space, its location, and local permitting requirements.

If your Store opens in a strip center or any building other than a major mall, the landlord will sometimes pay a portion of your tenant improvements. Your Store may open in a retail environment that offers tenant allowances and improvements.

Please consult with your lease professional to clarify if your Store is in a major mall or Triple A location. If this is the case, the landlord will usually not pay for any of your tenant improvements, resulting in higher construction costs to you.

The condition of previously occupied sites varies greatly and the amount of usable space also varies greatly.

3. Furniture and Fixtures: $14,600 to $30,000

4. Equipment: $40,062 to $82,781

5. Signs: $3,080 to $12,455

Items 3, 4, and 5 include the estimated costs to equip your Store with storage cabinets, display cabinets, cooking equipment, storage fixtures, signs, refrigeration equipment, and a computerized point of sale system (“POS System”) that includes PC-based registers, cash drawers, thermal receipt printers, scales, credit card authorization software, credit card readers, and laser bar code scanners.

6. Opening Inventory and Cooking Supplies Purchased from the Franchisor: $7,500 to $22,285

7. Opening Inventory and Cooking Supplies Purchased from Other Suppliers: $500 to $5,778

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Because Stores vary in size, the franchisor does not have an opening inventory requirement. You must maintain a minimum inventory of no less than 1,000 pounds of Factory Candy at all times. In addition, you need cooking supplies including chocolate, sugar, glucose, nuts, butter, evaporated milk, fresh and preserved fruit, flavorings, and other items.

8. In-Store Promotional Graphics: $3,675 to $10,291

The franchisor’s designated supplier will provide you with promotional graphics for the walls of your Store, which are tailored to different seasons of the year. You will alternate these graphics depending on the season or time of year.

9. Security Deposits, Utility Deposits, Business Licenses, and Lease Review Fees: $5,000 to $11,000

Security deposits range from $0 to two months’ rent; utility deposits range from $0 to approximately $1,500; and business licenses range from approximately $50 to $550, depending on your location.

10. Pre-Opening Training, Travel, and Living Expenses: $1,500 to $3,000

Your travel and living expenses when you attend the initial training program vary depending on the length of your instruction, the distance you must travel, and the standard of living you desire while you attend the program.

11. Additional Funds – 3 Months: $19,400 to $63,003

This estimates your pre-operational expenses, which are not listed above, as well as additional funds necessary for the first three months of your business operations. These figures are estimates and the franchisor cannot guarantee that you will not have additional expenses when you start the business.

12. Total Estimated Initial Investment for a Full-Sized Store: $186,517 to $486,793

The franchisor relied on its 39 years of experience in the industry and on information voluntarily reported by franchisees when it prepared these figures, but it has not made any independent verification of the information reported by franchisees.