What It Takes
ESTIMATED INITIAL INVESTMENT
|Franchise & Development Fee1||$35,000|
|Real Estate2||Costs Vary by Area|
|Building & Leasehold Improvements3||$525,000||$750,000|
|Miscellaneous Opening Expenses8||$5,000||$9,000|
|Additional Funds — 3 Months10||$40,000||$90,000|
- Franchise Fee and Development Fee. The Franchise Fee equals $35,000. Under our Veterans Program, we also are offering a reduced initial franchise fee of $17,500 for the veteran’s first restaurant. You must pay one-half of the Franchisee Fee as a non-refundable Development Fee when you sign a Development Agreement for each restaurant scheduled for development. You must pay the other half of the Franchise Fee when you sign the Franchise Agreement for each restaurant, after weave accepted the site you select for the restaurant and prior to the start of construction. We have no obligation to refund the Franchise Fee or the Development Fee. During our last fiscal year, depending on the experience of the franchisee, its development commitment, and other factors, we agreed in many cases to reduce the Franchise Fee (and the resulting Development Fee) by 50%.
- Real Estate. The estimated initial investment amount does not include the costs of location selection, land acquisition (by purchase or lease), land preparation, landscaping and other land improvements, or any associated financing costs. You will have responsibility for buying or leasing the real estate on which you intend to locate your Captain D’s restaurant. The cost of the real estate will vary greatly from location to location, and we have made no effort to state cost or average rental information because of the wide variances involved. The Captain D’s restaurant prototypes require a lot containing at least .60 acre for the 44-seat prototype, at least .50 acre for the 22-seat prototype, and at least .35 acre for the express prototype.
- Building and Leasehold Improvements. The 44-seat prototype contains approximately1,970 square feet and 44 customer seats, which can expand to 2,400 square feet and 62 customer seats in appropriate circumstances. The 22-seat prototype contains approximately 1,600 square feet and 22 customer seats. The express prototype contains approximately 780 square feet with no dining room seating. If your location requires the use of union labor, your building costs will exceed the above amounts by a significant amount. If you convert an existing building, your building costs generally should fall below or in the lower range of the costs given.
- Training Expenses. You must pay for the costs incurred during the training of your employees, including room and board and employee salaries and wages during training and preopening. The cost of those items will vary.
- Equipment. Prices for equipment will vary for each restaurant because of the various local building codes and health requirements. Equipment includes kitchen equipment, such as a broiler, fryers, refrigerators, freezers, and sinks; trade fixtures, booths, tables, and chairs; and other equipment used to operate a restaurant.
- Computer Systems. The above amounts include the cost of the hardware and software for your required point-of-sale and computer systems. Those systems include a back-office computer, a training computer, up to three point-of-sale computers, and up to seven order monitors. Your costs will vary depending on the number of terminals and monitors you purchase for your restaurant. The costs for those systems do not become due until after you open your restaurant.
- Miscellaneous Opening Expenses. You also must pay for incorporation fees, legal fees, business license fees, and utility deposits. The cost of those items will vary.
- Insurance. See Item 8 of this Disclosure Document for information regarding our insurance requirements.
- Additional Funds – Three Months. The above amounts represent an estimate of your initial start-up expenses (including staff payroll costs) during the first three months after the opening of your Captain D’s restaurant. The estimate of additional funds does not include an owner’s salary or draw. The figures represent estimates, and you may have additional expenses starting your business. Your costs will depend on factors such as how closely you follow our methods and procedures; your management skill, experience and business acumen; local economic conditions; the local market for our products; the prevailing wage rates; competition; your mortgage or rent payments; and the sales level reached during the initial period.
- Totals. We relied on our experience in developing company-owned Captain D’s restaurants during the past three years to compile the foregoing estimates. Your actual costs may exceed the above amounts. You should review the figures carefully with a business advisor before making any decision to purchase a Captain D’s franchise. The various third parties with whom you do business will determine the method and timing of the payments to them and whether they will refund any of those payments. We do not finance any part of your initial investment.
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