Beach Hut Deli
Date Incorporation: 2002
Franchising Since: 2003
Headquarters: California
Description: The franchisees offer, produce, merchandise, distribute and promote the sale of deli sandwiches and related products under the name "BEACH HUT DELI". The sandwiches are prepared fresh each day entirely within the shop with preparation of the contents of the sandwich within minutes before the sandwich's creation to ensure the utmost freshness and quality.
Franchise Offer: The franchisor offers to purchase one or more franchise(s) of a Beach Hut deli shop.
Financial Assistance: The franchisor does not provide any direct or indirect financing, nor do they guarantee any note, lease or obligation.
Training and Assistance: The franchisor helps in site selection and lease negotiation; provides the pre-opening guide and the operations manual as well as various selling aids.
The training program consists of 131 hours (approximately 16 days) of classroom and on-the-job training and will mostly take place at the Granite Bay Beach Hut Deli.
Territory: The franchisee will receive a specific location within which they will operate their franchise. The franchisee is not granted an exclusive territory.
Term of Agreement and Renewal: The term of the franchise agreement is 10 years and can be renewed for periods of 5 years if the franchisee is in good standing.
Obligations and Restrictions: The franchisee (or his/her majority owners if they are a corporation, limited liability company or partnership) should participate fully in the actual day to day operation of the franchise business. Each of the owners must assume and agree to discharge all of the franchisee's obligations under the Franchise Agreement.
The franchisor requires that the franchisee use, offer and sell only those Beach Hut Deli food products, goods and services approved in writing.
Total Number of Units: 15 units by year end 2007.
Total Number of franchises Units: 15 franchised units by year end 2007.
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Franchise Fee | $29,000 | $29,000 |
| Telephone and Utilities Deposits and Payments | $3,000 | $3,000 |
| Leasehold Improvements, including Architect Fees | $40,000 | $58,000 |
| Cabinets and Decor | $35,000 | $45,000 |
| Store-Front Signs | $4,500 | $8,500 |
| Franchise Premises Rent | $5,000 | $6,000 |
| Equipment and Supplies | $24,000 | $29,000 |
| Inventory | $4,000 | $6,000 |
| Initial Advertising Fees and expenses | $5,000 | $8,000 |
| Materials and Supplies | $100 | $1,000 |
| Insurance | $2,000 | $2,500 |
| Additional Funds - Working Capital, Training and Living Expenses (3 months) | $30,000 | $40,000 |
| Total | $172,600 | $236,000 |
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| Continuing Services And Royalty Fee | 5.5 % of weekly Gross Revenue |
| Advertising Fee | 1.5% of Weekly Gross Revenue |
| Additional Training | Currently up to $200 per day plus expenses |
| Additional Assistance | Currently up to $200 per day plus expenses |
| Franchise Fee for Additional Franchise | $15,000 |
Date of FDD: March 19 2008
The above information has been taken from the UFOC/FDD of Baker Bros Deli
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