The franchisee will operate a fast service restaurant specializing in fried chicken and related beverage products. The initial franchise fee is $25,000.00 and the estimated initial investment required for each restaurant ranges from $285,300 to $573,000. The initial franchise fee for a restaurant located inside a service station or convenience store ("C-Store") is $12,500.00 and the estimated initial investment required for each C-Store ranges from $30,000.00 to $150,000.00. These sums assume that the restaurant location will be leased and no purchased.
| | Amount | When Due | Method of
Payment | To Whom Payment
is to be made |
Franchise Fee
(Restaurant)
(C-Store) | (a) $25,000
(b) $12,500 | Lump Sum | Execution of
Franchise Agrmt. | Williams Chicken
(partially refundable
under certain circumstances) |
| Leasehold | (a) $100,000 -
(b) $200,000 | Negotiable | Negotiable | Landlord/Independent |
| Improvements | (a) $10,000 -
(b) $40,000 | | | Contractors |
| Lease Deposits | (a) $5,000 - $10,000
(b) $1,500 - $5,000 | Lump Sum/
Negotiable | Negotiable /
As Incurred | Landlord/Utilities |
Furniture &
Fixtures, Equip. | (a) $75,000 - $150,000
(b) $5,000 - $8,000 | Lump Sum/
Negotiable | As Invoiced | Independent Vendor |
| Signs | (a) $25,000 - $80,000
(b) $5,000 - $8,000 | Lump Sum/
Negotiable | | Independent Vendor |
Permits
Insurance | (a) $300 - $3,000 | Lump Sum | As Incurred | State/Municipal Agencies |
| Insurance | (a) $10,000
(b) $2,000 - $3,000 | Annual | Annual | Independent Carrier |
Opening Inventory &
Services | (a) $7,500 - $15,000
(b) $1,500 - $7,000 | Lump Sum/Negotiable | Vendor's Term/
As Incurred | Vendors/Williams Chicken |
| Additional Funds | (a) $25,000 | Cash | As Needed | Various Payee |
Promotional & Pre-Opening
Expenses | (a) $5,000 - $25,000 | Cash | As Incurred | Independent Vendors/Williams Chicken |
Travel & Living Cost
while Training | (a) $2,500 - $5,000 | Cash | As Needed | Independent Vendors/
Employees |
| Professional Fees | (a) $5,000 - $35,000 | As Arranged | As Arranged | Independent Vendor |
| Total | (a) $285,300 - $573,500
(b) $30,000 - $150,000 | | | |
1) As described in Item 5 and Item 10, Williams Chicken reserves the right to finance 80% of the Franchise Fee for persons who are then and have been for at least 5 years, Employees of Williams Chicken or WFCI, but otherwise does not finance this fee.
2)These amounts assume that you will lease the premises for the Restaurant and do not include costs related to the purchase of land for or contruction of the restaurant facility. Many Williams Chicken Restaurant are located in pre-existing locations built for another restaurant operation and subsequently converted to a Williams Chicken Restaurant. If you build your own facility, construction costs are estimated to be between approximately $400,000.00 to $800,000.00, exclusive of land costs and soft costs such as financing fees and interest. The amounts provided are based on a Restaurant of approximately 1,000 - 1,500 square feet, and assume conversion of finish-out costs of approximately $100.00 to $135.00 per square foot. Your costs may be lower if the landlord assumes the costs of converting and finishing out the space to Williams Chicken prototypical stands and specifications. Any such contribution by the landlord will likely, however, be factored into a higher lease rental rate. These amounts are Williams Chicken best estimate based upon commercian leasing and remodeling/finish-out rates and conditions in the Dallas, Texas metropolitan area and may vary substantially based upon local commercial leasing and labor rates and conditions and the availablility and prices of materials. The amounts provided also include Williams Chicken best estimate of architectural and design plans for the remodeling or finish-out of the Restaurant.