Franchise Fees & Requirements
The fees incurred while opening a Cottage Inn Pizza location will vary based on including but not limited to:
- Size of Store
- Equipment needs pertaining to anticipated sales volume
- Lease holder improvments
Figures provided can only be an estimate. Prospective franchisees should seek and obtain independent verification where possible. Cottage Inn requires a minimum net worth of $100,000, with a minumum of $60,000 in liquid assets or financing or a combination thereof. For multi-unit Master Franchisee info please contact the Cottage Inn Management office.
|Initial Franchise Fee
|Training Expenses (1)
||$1,500 to $3,000
|Opening Supply of Food, Paper, and Uniforms (2)
||$4,000 to $8,000
||$35,000 to $65,000
|Leasehold Improvments & Decorating (4)
||$20,100 to $40,000
||$3,500 to $8,500
|Opening Advertising & Promotion (6)
||$5,000 to $6,000
|Prepaid Expenses (7)
||$2,500 to $5,000
|Three Months Rent (8)
||$5,000 to $7,000
|First Quarter Operating Costs (9)
||$7,500 to $7,500
TOTAL ESTIMATED INITIAL INVESTMENT (9) $99,000 to $160,000
We relied on our over 17 years of experience in franchising this business to compile these estimates. You should review these figures carefully with a business advisor before making any decision to purchase the franchise. We do not offer financing directly or indirectly for any part of the initial investment. The availability and terms of financing depend on many factors, including the availability of financing generally, your creditworthiness and collateral and lending policies of financial institutions from which you request a loan.
- This amount is the estimated approximate total cost for travel, lodging and other expenses when you and your employees attend the initial training program.
- The initial supplies you need include items you must purchase from us, as well as items you may purchase from third party vendors. We will assist you in determining the appropriate level of initial supplies.
- This expense covers ovens, cooler, small wares, makeline, counters, prep tables, sheeter, freezer, pans, racks, cut table, sinks and the like.
The leasehold improvements expense covers installing fixtures, painting, installing partition walls and basic utility work. The lease typically gives you a “vanilla box” with sheet rock walls between neighboring tenants, a standardized storefront and electrical outlets conforming to code. The landlord might give you a “build-out allowance” to cover all or part of the leasehold improvement cost, which will reduce your initial investment but increase your monthly rent. You will know whether the landlord will provide a build-out allowance before you sign the lease.
The leasehold improvements expense range noted in the tables varies due to 3 factors: ( i) size of the space; (ii) elective decisions you make on decor options; and (iii) needs that are unique to the space (for example, demolition costs and special building and/or permitting requirements). We have accounted only for the first two factors in the table.
- This includes both neon exterior signs and delivery vehicle signs.
- This amount includes flyers and other print media selected by you.
- The largest part of this expense is your security deposit, usually equal to one month’s rent. Other deposits are for utility and phone service and insurance.
- Most franchise owners lease their space. The Store’s premises typically are in a commercial area and a shopping mall, strip center or in-line location or freestanding unit. The monthly cost typically is $1,666 to $2,333 for an approximately 1,500 square foot location. (Some landlords require payment by the tenant, in addition to the monthly rent, of an allocable share of property tax, insurance and common area maintenance (“CAM”) expenses incurred by the landlord. Other landlords cover such expenses out of the monthly rent.) The actual lease costs depend on the condition, location and size of the premises and the demand for the premises among other possible lessees.
- This item estimates your initial start up expenses (other than the items identified separately in the table). These expenses include payroll costs but not any draw or salary for you. These figures are estimates, and we cannot guarantee that you will not have additional expenses starting the business. Your costs will depend on how much you follow our methods and procedures; your management skill, experience and business acumen; local economic conditions; the local market for your products and services; the prevailing wage rate; competition; and the sales level reached during the initial period.
- The numbers in the tables are based on developing a new Store and not buying an existing Store. While the purchase price paid to the seller of an existing Store will include many of the expenses noted in the tables, it also will reflect going concern value, which could cause the total figure to vary. The Store’s seller and buyer will negotiate the actual purchase price and payment terms.