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This post was updated on August 22, 2016 to reflect information from Dominos Pizzas
2016 FDD (Item 7).
Detailed Estimates of Dominos Pizza Franchise Costs Based on Item 7 (Estimated Initial
Investment) of Dominos Pizzas 2016 Franchise Disclosure Document
For a Traditional Store
1. Initial Fee: $0 to $25,000
The Initial Fee for single Stores ranges from $0 to $25,000. The Initial Fee due under a
Development Agreement is calculated based on a number of considerations, including your
prior management or supervisory experience in the Dominos Pizza System, the number of
Stores included in a Development Agreement, and the duration of the Development
Agreement.
You must lease an appropriate site, subject to the franchisors approval of the lease prior
to your execution of the lease. Generally, the leases are for 5 years with an option to renew
for 5 years. The term and renewal of leases for Dominos Pizza Non-Traditional Stores will
be subject to negotiation but may be three (3) years or less, subject to renewals or
extensions by the parties.
The amounts specified for leasehold improvements, security deposits on a lease, and
rent are based on the franchisors business experience. These costs depend on the size,
condition, and location of the leased premises, and the costs the landlord assumes.
You may hire any party for site selection assistance or may conduct site selection
yourself.
Other than as described in Items 7 and 8, you may purchase or lease original equipment
and supplies, signs, and opening inventory meeting the franchisors standards from any
approved source, including Dominos Pizza Distribution LLC (DPD). The purchase or lease
payments are made to either DPD or other suppliers.
The franchisor does not require you to purchase or lease delivery cars and therefore
these costs are not included in this Item.
This amount is for opening advertising and promotion and does not include Advertising
Fund or cooperative contributions.
Training expenses include fees for training materials for each session required for all
new employees, manager candidates, managers, and prospective franchisees.
Dominos PULSE Training may be required for prospective franchisees who do not have
sufficient experience in the use of Dominos PULSE.
The franchisor estimates that annual insurance premiums for a Dominos Pizza
Traditional Store will range from $9,000 to $17,000; from $6,000 to $17,000 for a Dominos
Pizza Non-Traditional Store; and from $6,000 to $17,000 for a Dominos Pizza Transitional
Store.
However, this cost may be significantly higher depending on the state coverage
requirements, store location, and your loss history.
The Miscellaneous Opening Costs are the franchisors best estimate of the costs and
deposits for and installation of telephones, connectivity, internet, deposits for gas, electricity,
and related items. These are paid as incurred to various utilities and suppliers.
This item estimates your initial startup expenses for 3 months and assumes you pay the
maximum estimated figure for monthly rent. This item does not include ongoing inventory
purchases, royalty or advertising payments, or the cost of any financing interest or amount
of debt service obligation.
These figures are estimates and the franchisor cannot guarantee that you will not have
additional expenses starting the business.
The franchisor relied on over 50 years of its affiliates and predecessors business
experience to compile these estimates.
From time to time, the franchisor sells company-owned stores to franchisees. The
purchase price of the store will vary and may be more or less than the amounts set forth in
the tables. The purchase price of these stores did not exceed the upper range of the Total
Estimated Initial Investment in the Item 7 table in fiscal year 2015.
The total estimated initial investment necessary to begin operating a Dominos Pizza
Non-Traditional Store ranges from $99,150 to $535,900.
The total estimated initial investment necessary to begin operating a Dominos Pizza
Transitional Store ranges from $115,100 to $378,400.
How much does it cost for Pizza Hut or Dominos to make a large pepperoni pizza?
Domhnall O'Huigin, 15+ years in business with responsibilities for regulation and compliance.
Labour: The national minimum wage in the UK (the first citation references UK
data so I'll stick with that for this answer, although for the record, I am in the Republic of
Ireland) is 6.08/hr [2]. I'll go for the full hour here, although I'll split it between front of
house who receive and log the order, the pizza maker and boxer and the delivery person
who delivers it. So, since the Service Level Agreement in the UK is 40 mins I'll average it
out at 40 (for order taking and pizza making)+40 minutes for delivery = 80 minutes = 1hr
20mins = 8.10 = $12.50.
Overheads: Business insurance, rates and what not. These are very difficult to
estimate, varying wildly. I think a rate of 50p per pizza is reasonable but I have no citation
specific to the question to offer. 50p = 64c.
So we get [GBP] 1.44+8.10+0.5 = 10.04 = $15.59.
The delivery price listed in [1] is 17.99 = $27.94, a sizeable markup by any standards....
Two points to bear in mind:
1. The above is [deliberately] an over-estimate and assumes no economies of scale or
efficiencies.
2. If you calculate the profit on the cost of the ingredients only, you will undoubtedly get a much
higher gross profit however this is not per the question (or indeed reality).
Low
High
Development Fee
$12,500
$12,500
$35,000
$35,000
Variable
Soft Costs
$33,392
$101,721
Site Work
$153,075
$419,412
Building
$417,376
$593,844
$239,172
$384,586
Initial Training
$15,200
$22,200
Opening Supplies
$10,000
$20,000
Insurance
$9,000
$18,000
Low
High
Utility Deposits
$3,000
$50,000
Business licenses
$300
$600
$20,000
$30,000
$948,015
$1,687,863
Low
High
Development Fee
$12,500
$12,500
$35,000
$35,000
Variable
Soft Costs
$7,840
$37,500
Building
$250,000
$413,388
$242,000
$320,019
Initial Training
$15,200
$22,200
Opening Supplies
$10,000
$20,000
Insurance
$9,000
$18,000
Utility Deposits
$2,500
$5,000
Business licenses
$300
$600
$20,000
$30,000
$604,340
$914,207
Low
High
Development Fee
$12,500
$12,500
Low
High
$35,000
$35,000
Variable
Soft Costs
$25,449
$116,345
Site Work
$0
$174,712
Building
$312,613
$378,524
$255,195
$329,835
Initial Training
$15,200
$22,200
Opening Supplies
$10,000
$20,000
Insurance
$9,000
$18,000
Utility Deposits
$2,500
$5,000
Business licenses
$300
$600
$20,000
$30,000
$697,757
$1,142,716
Other Fees
Type of Fee
Amount
Royalty
5% of gross sales.
Advertising
Contribution
Fund
4% of gross sales.
Advertising Co-op
Audit
Cost of audit.
Costs
and
Franchisors costs and expenses.
Attorneys Fees
Other Fees
Type of Fee
Amount
Development
Schedule Extension Up to $5,000 for each Development Schedule Extension.
Fee
Indemnity
Insurance
Interest on Overdue 1.5% per month or the maximum rate permitted by law,
Payments
whichever is less.
Interest
on 1.5% per month or the maximum rate permitted by law,
Understated Sales whichever is less.
Returned
Fee
Payment
Product Testing
Renewal
Supplemental Term
50% of our then current, standard, initial franchise fee.
Option
Trade
Products
Transfer
$7,500
Impact Study
Non-Solicitation
Employees
of
The above information has been taken from the FDD of Popeyes Louisiana Kitchen. Year of
FDD: 2016
This post was updated on May 9, 2016 to reflect information from Popeyes Louisiana
Kitchens 2016 FDD (Item 7).
Detailed Estimates of Popeyes Louisiana Kitchen Franchise Costs Based on Item 7
(Estimated Initial Investment) of Popeyes 2016 Franchise Disclosure Document
For Free-Standing Restaurants
1. Development Fee: $12,500
You must pay the $35,000 Franchise Fee prior to commencement of construction of the
Restaurant.
The franchisor cannot estimate your initial investment for acquiring or leasing real estate
for the Restaurant; however, the following factors will bear on these costs.
This estimate covers site improvement costs such as sewer, electrical, water, paving,
striping, concrete, landscaping, grading and excavation, and site accessories.
This estimate includes the costs of constructing improvements, or building out the
premises at which you will operate your Restaurant. Among other things, you will need to
arrange for proper wiring and plumbing, floor covering, wall covering, partitions, heat, air
conditioning, lighting, installation, storefront modifications, painting, cabinetry, bathroom
facilities, etc., as outlined in architectural Mechanical, Electrical, and Plumbing (MEP)
drawings.
You will need to hire a qualified licensed general contractor. Free Standing Restaurants
are ordinarily of masonry or frame construction.
You must purchase certain items of furniture, fixtures, equipment, signage, smallwares,
and a technology package (point-of-sale and back-of-house computer systems and
firewall) for your Restaurant. The Manual contains a complete list of the needed items.
The cost of equipment and signage varies depending on the size and location of the
Restaurant.
In connection with the initial training, you will need to arrange and pay for transportation,
lodging, food, and incidental expenses for you and your designated management
employees. You must also pay the salaries and benefits of your designated management
employees.
The franchisor may require that you send a certain minimum number of employees that
the franchisor determines to training.
In addition, if PTP (as more particularly described in Item 11) is completed at a Popeyes
Restaurant that is owned by another Popeyes franchisee, you will have to reimburse that
franchisee for certain training costs as described in Item 11.
The franchisor estimates that this amount will be sufficient to cover a supply of food and
paper products for the first one to two weeks of Restaurant operations.
This item includes amounts that must be paid before the opening of your Restaurant and
may not include amounts payable after the Restaurant opens.
Required
insurance
includes:
general
liability,
employers
liability,
workers
compensation, auto liability, and property insurance. Your costs will vary according to the
risks associated with your business and your location. The cost of workers
compensation insurance will vary according to the number of employees of the
Restaurant and the requirements of state law.
11. Utility Deposits: $3,000 to $50,000
You may need to provide deposits for utilities. The amount of these deposits and utility
costs will vary depending upon the location of the Restaurant and the practices of the
lessor and the utility companies.
Local, municipal, county, and state regulations vary on what licenses and permits are
required to operate a Restaurant. For example, you may need city and county
occupational licenses and a city food handlers license. These fees are paid to
government authorities before commencing business.
You will need capital to support ongoing expenses, such as payroll, uniforms, supplies,
and miscellaneous expenses. The franchisor estimates that this amount will be sufficient
to cover ongoing expenses for 3 months. This is only an estimate, however, and there is
no assurance that additional working capital will not be necessary whether during this
initial phase or later.
This is the franchisors best estimate of your total investment, excluding the cost of real
estate, assuming that you will establish only one Restaurant.
The franchisor relied upon the many years of experience of its executives, its experience
in developing company-operated Restaurants, and reports from its franchisees in
preparing these figures.
The total estimated initial investment necessary to begin operation of an in-line Popeyes
Restaurant, excluding the cost of real estate, ranges from $604,340 to $914,207.
Conversions refer to existing buildings usually between 1,800 and 3,500 square feet in
size that can be remodeled and re-imaged to Popeyes standards. Conversion
buildings are typically free-standing and built for restaurant use, but can also include
in-line buildings and other previous uses such as bank buildings and coffee shops.
m nh hng, cng nh cc la chn cho thit b nh bp, bng hiu, phong cch bi tr
v cnh quan xung quanh.
Bn nhn nhng quyn s phi thanh ton 40% chi ph startup ny bng tin mt v cc
ngun vn khng vay mn, 60% phn cn li th c th xin ti tr t cc ngun ti
chnh khc.
Ngoi cc chi ph ni trn, McDonald's cng thu thm mc ph nhng quyn (franchise
fee - gia nhp h thng) 45.000 USD v ph duy tr hng thng (royalty/service fee - duy
tr) bng 4% tng doanh thu. Bn nhn nhng quyn cng phi tr tin thu ca hng
cho cng ty.
Thc t, chi ph thu ca hng m bn nhn nhng quyn thng s phi tr chim
khong 8,5% doanh thu, mt s ca hng c th ln n 12%, theo bo co ca
Bloomberg nm 2013.
Mc chi ph nhng quyn m mt nh hng McDonald's cng tng ng vi cc
chui khc nh KFC, Wendy's v Taco Bell.
Chui Subway t tn km hn mt cht, vi chi ph tng cng dao ng t 116.000 USD
- 262.850 USD. Subway yu cu bn nhng quyn s hu t nht 30.000 - 90.000 USD
tin mt v ti sn lu ng.