Explanation of Expenses:
Initial Fees
The Franchise Licensing Agreement grants the right to open one shoppe in a
specific location. Each shoppe services a "Primary Marketing Area," which is
generally identified by U.S. Postal Zip Codes. The initial licensing fee will
vary according to the size and demographic characteristics of the population
within the Primary Marketing Area.
Opening Inventory
Various supplies are included in this category such as ingredients, baskets and
containers, and other materials needed in production for the first month of
business.
Major Equipment
This category includes major bakery equipment, cookie cutters and computer
software and hardware, as well as any installation costs.
Leasehold Improvements
These consist of shoppe construction costs, which include such things as
plumbing, painting, electrical work, cabinetry work, contractor's fee, etc.
Furniture, Fixtures & Cabinetry
This line item includes the cost of tables, chairs, shelving, cabinetry and
other miscellaneous furniture items, as well as any associated installation
costs.
Signs
Storefront and illuminated signs are included in this category, along with
installation costs.
First Month's Rent
This category represents the monthly rent charges for the first month of
operation.
Security Deposit/Insurance Deposits
Utility deposits and rent security deposits are included in this category.
Insurance down payments are also included.
Training
Training costs include amounts for transportation and room and board for each
person while attending Cookie College.
Working Capital
This figure approximates salary, occupancy costs, and other expenses that will
be incurred during the first three months of operation.
Licenses & Permits
This item includes the cost for the various business licenses and permits that
may be required depending on your location.
Advertising Fee
This fee consists of the estimated cost of listing your business in the yellow
& white pages of telephone directories in your area.
|