BOM Development
Date Incorporation: 2007
Franchising Since: 2007
Headquarters: California
Description: The franchisee operates a full service restaurant offering a menu of authentic Mediterranean and Middle Eastern prepared dishes that include but are not limited to: a variety of salads, soups, appetizers, falafel, kabobs, gyros, vegetarian items, grilled meats, poultry and combination plates. This restaurant is a service business that provides in-house seating, counter service, take-out and delivery services, catering and limited flexibility in menu offerings in order to blend into each demographic area.
Franchise Offer: The franchisor is offering a franchise agreement for the development and operation of a single Best of Mediterranean at a specified location, which is within an exclusive territory. They are also offering an area development agreement for the development of multiple Best of Mediterranean in an exclusive region. Best of Mediterranean is a full service restaurant offering authentic Mediterranean cuisine featuring popular Middle Eastern dishes that Americans have grown to appreciate.
Financial Assistance: The franchisor does not offer, directly or indirectly, any financing arrangements to the franchisee. The franchisor does offer financing of up to 50% of the initial development fee to qualified area developers. The financed amount will be payable in equal monthly installments over a 12-month period. This financing will bear simple interest at the rate of 8% APR on the unpaid amount.
Training and Assistance: The training program includes a pre-opening manual, operations manual, hands-on training, classroom training, on-site training and demos, at the corporate office. The program will last for approximately 14 days.
Territory: The franchisee is granted an exclusive territory. The franchisee must operate their restaurant within the specific location identified in the franchise agreement. The protected territory is defined by a 2-mile radius centered from where the business is located and typically, the protected territory will include a population of up to 100,000 persons.
Term of Agreement and Renewal: The length of the franchise term is 10 years, with an option for renew for an additional 10 year period
Obligations and Restrictions: The franchise must at all times be under the direct, day-to-day, full time supervision of the franchisee or the restaurant manager. Both persons must have successfully completed the training program.
Total Number of Units: 2 outlets at the end of 2007
Total Number of franchises Units: No franchised outlets at the end of 2007
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Computers and Software | $2,500 | $4,500 |
| Furniture, Fixtures General Office Supplies | $30,000 | $60,000 |
| Real Estate | $3,750 | $5,500 |
| Architectural | $10,000 | $15,000 |
| Leasehold Improvements | $50,000 | $150,000 |
| Permits | $7,000 | $15,000 |
| Lease and Utility Deposit | $8,500 | $15,000 |
| Signage | $10,000 | $18,000 |
| Equipment | $3,000 | $150,000 |
| Freight Charges | $0 | $5,000 |
| Inventory | $10,000 | $20,000 |
| Vehicle | $400 | $3,000 |
| Uniforms | $200 | $500 |
| Marketing | $5,000 | $18,000 |
| Insurance | $2,250 | $3,700 |
| Security System | $0 | $2,500 |
| Training | $1,000 | $2,500 |
| Franchise Training Evolution Program | $2,000 | $2,500 |
| Business Licenses and Other Professional Fees |
$2,500 | $5,000 |
| Staffing | $9,000 | $24,000 |
| Operating Expenses and Additional Funds | $15,000 | $30,000 |
| TOTAL | $197,100 | $574,700 |
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| Royalties | 4% of monthly gross revenue |
| National Advertising Fee | 1% of monthly gross revenue |
| Advertising Local | Minimum is 2% of gross revenue of previous month |
| Regional/Local Advertising Cooperatives | Up to 2% of gross revenue |
| Interest and Late Charges | 1% per month, plus $25 |
| Additional Training | $300/day or costs of third party charges |
| Audit Expenses | Cost of audit fees plus interest @ 1.5% per month |
| Transfer Fee | 25% of the then current franchise fee for a single franchise and $10,000 for area developers. |
| Costs and Attorney’s Fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
| Software Licensing Fee | $50 - $150 per month |
| Web Site Maintenance and Hosting Fee | Currently $25 per month, may increase to support growth of your business |
| Security Monitoring Fee | $0-$300 per month |
| POS Maintenance Fee | $100 - $500 per month |
| Product and Vendor Assessment Fee | $100 per product or vendor $300 for multiple products $500 for equipment testing |
| Renewal Fee | 25% of the then current franchise fee for a single franchise and 25% of the initial development fee for the area developer. |
The above information has been taken from the UFOC/FDD of BOM Development
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