FINANCIAL SUPPORT
Two major criteria are used in reviewing and evaluating the financial qualifications of a prospective Franchise Owner. We consider the personal net worth of each party and the capital liquidity (liquid assets) available for a Hot Harry’s Fresh Burritos® investment. The decision for financial approval is based on the individual’s capabilities and the scope of the proposed franchise activities (i.e. single unit, master franchisor, etc.)
The total investment in the business will vary depending upon: the cost of location, leasehold improvements, deposits and other factors. These estimates are based on leasing the property and, therefore, do not include land and building costs. There are no provisions for financing in the estimates; however, a franchise owner may be able to finance a portion of the costs. Availability and terms of financing from a lender are usually dependent upon the general availability of financing, the credit-worthiness of the franchise owner, other security, and the lender’s policy regarding franchising.
INITIAL INVESTMENT |
LOW ESTIMATE |
HIGH ESTIMATE |
Furniture, Fixtures, Equipment & Signage |
$66,000 |
$105,500 |
| Leasehold improvements |
$30,000 |
$50,000 |
Opening Inventory |
$7,000 |
$10,000 |
Permits & Fees: Architectural, Design & Deposit, Liquor License |
$10,000 |
$15,000 |
Working Capital |
$10,000 |
$15,000 |
Opening Advertising |
$5,000 |
$5,000 |
Professional Fees |
$2,000 |
$5,000 |
Training Expenses |
$4,000 |
$7,500 |
Franchise Fee |
$25,000 |
$25,000 |
INVESTMENT RANGE |
$159,000 |
$238,000 |
Typical size ofHot Harry’s Fresh Burritos® restaurant is from 1,400 – 3,000 square feet. Rent for a leased restaurant is estimated to be between $3,000 and $6,000 per month depending upon factors such as size, condition and location of the premises.
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