BEN & JERRY’S Franchise Start Up Costs

bandjEver daydream about owning a Ben & Jerry’s franchise Scoop Shop?

Or wonder what it would cost?

Well, here are the estimated start-up costs for a typical Ben & Jerry’s franchise (supplied by the company).  Contrary to what many believe, the bulk of your investment as a new franchise owner is paid to vendors, suppliers, contractors, landlords, etc. and not to the franchisor company.

The chart below breaks out not only the items and costs, but also who is paid for each:

ESTIMATED EXPENDITURES FOR SCOOP SHOPS
TYPE A AND B (APPROXIMATELY 750-1500 SQ.FT)

ITEM: Estimated Cost Paid to:
Preliminary Agreement Deposit $16,000 Ben & Jerry’s
Initial Franchise Fee $32,000 ($16,000 will be credited from the Deposit) or $8,000 for a Satellite Shop Ben & Jerry’s
Plans, Development & Permits $3,500 to $12,000 Architect, City & State Licensing Authority
Leasehold Improvements & Construction $80,000 to $200,000 Contractor
Furniture, Fixtures, Equipment, Casework, & Smallwares $50,000 to $80,000 Vendors
Signage $5,000 to $15,000 Vendors
Professional Fees $3,000 to $6,000 Attorney, Accountant, etc.
POS and Telephone $8,100 to $8,400 Vendors, Suppliers
Deposits $3,000 to $8,000 Landlord, Vendors, & Utility Providers
Initial Training $1,000 to $3,000 Vendors
Inventory $8,000 to $14,000 Vendors, Distributors; Suppliers
Insurance $500 to $2,500 Insurers
Grand Opening Advertising $3,000 Suppliers
Subtotal: $197,100 to $383,900

ESTIMATED EXPENDITURES FOR:

INLINE SCOOP SHOPS (APPROXIMATELY 450-650 SQ.FT): $160,100 to $264,900

A SHOP-IN-SHOP SCOOP SHOP (APPROXIMATELY 450-650 SQ.FT): $143,600 to $217,900

KIOSK SCOOP SHOP (APPROXIMATELY 100-200 SQ.FT): $118,300 to $210,900

ADDITIONAL ESTIMATED EXPENDITURES:

3 months’ operating expenses: $55,000 (estimate)
According to Ben & Jerry’s, “You will need additional funds to support on-going expenses, such as payroll, rent and utilities, to the extent that these costs are not covered by sales revenue. New businesses often generate a negative cash flow. We estimate that the amount given will be sufficient to cover on-going expenses for the start-up phase of the business, which we calculate to be 3 months. This is only an estimate, however, and there is no assurance that additional working capital will not be necessary during the start-up phase or after. A more detailed description of the total investment required is available in our Franchise Disclosure Document.”

Source:  Ben & Jerry’s Image: Ben & Jerry’s

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