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Originally Posted by Mr Tonka
So, $100k for start up, but what are operating costs and what is the projected time frame to start breaking even with operating costs? I'm assuming that with a franchise, they know what the operating costs are up front.
So you'll not only need your $100k start up cash, but depending on the franchise you could also need an additional $100k to $200k for operations until your cash-flow gets positive.
You may want to look at something like SmootieKing, Yogurtology, Yogurt Mountain, etc... Those can typically be located in some lower rent locations and require less payroll expense than some of the larger franchises.
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A portion of the operating costs are included in that initial investment needed. The franchise fee is $30k with $5k for software. The rest goes towards salary for a trained chef, kitchen staff, marketing staff, lease and a kitchen. I need to get more details and request informatin on what kind on NI there may be.
This would be a lower rent (2-4 employee operation) but the low rate of competition and client base are what initally got my attention.
Smoothies would be another good route to go (i.e. Robeks). They are a lot better than most of the chains in my area.