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Financial Considerations
Two major criteria are used in reviewing and evaluating the
financial qualifications of a prospective Franchisee Owner. We
consider the personal net worth of each party and the capital
liquidity (liquid assets) available for the Buffalo Wings and
Rings' investment. The decision for financial approval is based
on the individual's capabilities and the scope of the proposed
franchise activities (i.e. single unit, area development, etc...)
The total investment in the business will vary upon the cost of the location, the equipment package,
leasehold improvements, deposits and other factors. These estimates are based on leasing
the property and do not include land and building costs. There are no provisions for
financing in the estimates; however, a franchise owner may be able to finance a portion of the costs.
Availability and terms of financing from a lender are usually dependent upon the general availability of financing,
the credit worthiness of the franchise owner, other security, and the lender's policy regarding franchising.
See below a chart detailing the initial investment for a new location, as it appears in the Franchise Disclosure Document.
|
Estimated Initial Investment |
Low estimate |
High estimate |
|
Initial franchise fee |
$30,000 |
$30,000 |
|
Equipment package |
$85,000 |
$95,000 |
|
Furniture & Millwork |
$45,000 |
$50,000 |
|
Point of Sale Micros System |
$19,000 |
$21,000 |
|
Alcoholic beverage license |
$2,500 |
$15,000 |
|
Professional fees |
$18,000 |
$20,000 |
|
Television & related equipments |
$25,000 |
$40,000 |
|
Training (travel and living expenses) |
$6,000 |
$10,000 |
|
Monthly rental payment & deposit |
$12,000 |
$19,000 |
|
Leasehold improvements
** |
$195,000 |
$320,000 |
|
Signs |
$8,000 |
$18,000 |
|
Opening inventory |
$9,000 |
$12,500 |
|
Miscellaneous opening costs |
$13,000 |
$16,000 |
|
Grand opening advertising |
$3,000 |
$3,000 |
|
Contingency fund |
$15,000 |
$20,000 |
|
Total |
$485,500 |
$689,500 |
- Typical size of a Wings & Rings restaurant ranges from 3,000 to 4,500 square feet.
If you are interested in an area development you would pay $5,000 up-front for each unit agreed to open in an area. The minimum is $15,000 or $5,000 per unit x number of units in the area, which ever is greater.
The franchise fee is the then current franchise fee minus $5,000 prepaid as the development fee.
- These amounts are estimates only and do not take into account any finance charges, interest, debt service obligation, or other costs that you may incur to finance all or any portion of your investment.
** These amounts are estimates only and are expressed in ranges. The actual amounts could be more or less than the amounts noted based on your lease terms and tenant improvement money. The costs for leasehold improvements will vary depending upon several factors, including the geographic location of your Franchised Restaurant, the size of the premises, the availability and cost of labor and materials, the condition of the premises, and the work that the landlord will perform as the result of lease negotiations. Landlords may, instead of performing some of the work, provide you with credits towards your future rent payments and/or a tenant improvement allowance. The amounts are based on leased space and approximate TI money of $25 - $35 per sq. ft.
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