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There are start-up costs associated with every business. The
following table provides an estimate of the typical investment.*
All franchisees pay an Initial Franchise Fee of $35,000 – other
costs vary by location and cost of living.
| |
Range of Cost |
|
Description of Expense |
Low |
High |
|
Initial Franchise Fee |
$35,000 |
$35,000 |
|
Leasehold Improvements |
$90,000 |
$130,000 |
|
Architectural/Engineering Fees |
$1,500 |
$5,000 |
|
Training Travel Expenses/Wages (2 people)** |
$1,000 |
$3,500 |
|
Furniture, Fixtures, Equipment*** |
$20,000 |
$30,000 |
|
Computer Equipment |
$3,000 |
$6,000 |
|
Signs |
$4,000 |
$6,000 |
|
Initial Inventory and Supplies |
$5,000 |
$9,000 |
|
Lease Payments (3 Months) |
$10,500 |
$22,500 |
|
Employee Salaries (3 Months) |
$20,000 |
$45,000 |
|
Insurance (3 Months) |
$3,000 |
$6,000 |
|
Miscellaneous Fees |
$8,000 |
$15,000 |
|
Grand Opening Advertising |
$2,500 |
$2,500 |
|
Additional Funds (3 months)† |
$11,000 |
$25,000 |
|
Total |
$214,500 |
$340,500 |
* See UFOC for further details
**
Travel, lodging, and wages during training for one
owner and one general manager in Let’s Dish!’s
corporate headquarters in Burnsville, MN
*** This
is the range of estimated initial expenditures for
FF&E during the first three months of operations if
you lease equipment. If you purchase the FF&E
outright, your estimated initial investment will
generally range from $83,000-93,000.
† These figures
have not been offset by operating revenues. |
In addition to day-to-day business operations expenses,
franchisees pay ongoing fees for corporate
infrastructure and franchisee
support. These expenses include royalties (6% of revenue)
and advertising fees (2% of revenue) paid to Let’s Dish!.
Franchisees are also required to spend 1% of revenue on local
advertising to support the brand.
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"We became a part of the
Let’s Dish! Franchise system
confident they would grow the
organization the right way and
they have exceeded our
expectations.”
RJ Dourney
BW Passion, LLC
Boston Area Franchisee |
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