Fee Structure & Individual Location Investment
- Master Franchise Fee and Exclusive Territory Fee – The amount of this fee is determined by valuating each market independently
- Ten percent (10%) of the fee is paid upon signing of the Memorandum Of Understanding (MOU)
- The balance of the fee is paid upon signing of the Development Agreement
- Franchise Fee - This fee is paid upon the opening of each franchised location
- $27,500 for Full-Sized Bakery locations - 401 to 800 sq ft (37 to 74 sq m)
- $17,500 for Express/Kiosk Bakery locations - 200 to 400 sq ft (18.5 to 36 sq m)
- Royalty Rate - Six percent (6.0%) of monthly revenues
- Advertising & Marketing Fund - One percent (1.0%) of monthly revenues
- Investment on Individual Locations - The investment level required to open each individual location will vary from country to country
Focus Brands International negotiates development agreements ranging from a minimum of five, to over one hundred locations. Because of the potential range of scheduled growth and country-specific costs, financial requirements will vary but are commensurate with the scope of the proposed project.
As an example of the financial capability required...
For Development Agreements that are written for the opening of only five locations, we expect that you will have sufficient liquid assets to finance the first two locations completely, plus have the capital to fund the next three locations at 50% of the overall cost.
When the number of locations increases for larger territory commitments, we will expect that your financial resources will be adequate to propel your operation beyond its first three years.
We expect that, aside from the funding required for the development of retail locations, you will additionally incur expenses that are associated with building an infrastructure to support your store operations.