Initial Investment
INITIAL INVESTMENT
| INVESTMENT | ESTIMATED AMOUNT OR ESTIMATED LOW-HIGH RANGE* | WHEN DUE | METHOD OF PAYMENT | WHETHER REFUNDABLE | TO WHOM PAYMENT IS MADE |
| INITIAL FRANCHISE FEE | $25,000 | At signing of Franchise Agreement | Lump Sum Check or Cash | No | Tony Roni's |
| REAL ESTATE/RENT (1 MONTH) | $4,000-$6,000 | As Incurred | As Agreed | No | Landlord |
| REAL ESTATE | $4,000-$6,000 | As Incurred | As Agreed | Yes | Landlord |
| LEASEHOLD IMPROVEMENTS1 | $131,000-$155,000 | As Incurred | As Agreed | No | Contractors Vendors Suppliers |
| FURNITURE, | $31,500-$35,000 | As Incurred | As Agreed | No | Approved Vendors |
| ARCHITECT2 LEGAL/ ACCOUNTING FEES | $8,500-$10,500 | As Incurred | As Agreed | No | Architect Lawyer Accountant |
| EQUIPMENT INSTALLATION SMALLWARES | $99,000 | As Incurred | As Agreed | No | Approved Vendors |
| UTILITY DEPOSITS | $1,000-$1,500 | As Incurred | As Agreed | Yes | Utility Companies |
| OPENING INVENTORY & SUPPLIES | $5,000-$7,000 | As Incurred | As Agreed | No | Approved Vendors |
| GRAND OPENING | $5,000 - $7,500 | As Incurred | As Incurred | No | Marketing Partners & Advertizers |
| TRAVEL & LIVING EXPENSE DURING TRAINING | $2,500-$5,000 | As Incurred | As Incurred | No | Motels, Restaurants Etc. |
| INSURANCE | $1,500-$2,500 | As Incurred | As Incurred | No | Insurance Company |
| PHONES MUSIC-WIRING INSTALLATION | $5,000 | As Incurred | As Incurred | No | Supplier/Contractor |
| MISC & ADDITIONAL FUNDS (3 MONTHS) 3 | $15,000- $25,000 | As Incurred | As Incurred | No | Employees, Vendors, Landlord Utilities |
| TOTAL ESTIMATED INITIAL INVESTMENT (ExCLUDES real estate purchase costs) | $323,000-$390,000 | ||||
| ONGOING | Royalties - 5% Advertising - 2% | Weekly Every Tuesday | Bank Transfer | No | Tony Roni's |
| 1 | These figures represent approximate costs for build out of a 1900 square feet facility. These amounts may be reduced if the landlord contributes any tenant finish allowance. |
| 2 | These amounts do not include plan review fees assessed by the municipality in which the restaurant will be located. |
| 3 | This estimates the funds needed to cover your initial expenses for the first 3 months of operation. However, this is only an estimate, and it is possible that you will need additional working capital during the first 3 months you operate your restaurant and for a longer time period after that. This 3-month period is not intended, and should not interpreted, to identify a point at which you restaurant will break even. We cannot guarantee when or if your restaurant will break even. Your costs will depend on your management skill, experience, and business acumen; local economic conditions: the prevailing wage rate; competition; and your restaurants sales during the initial period. |
