Great American Cookies®
Date Incorporation: 2007
Franchising Since: 2008
Headquarters: Georgia
Description: The franchise operates retail stores selling cookies, brownies and related food items and beverages under the Great American Cookies mark.
Franchise Offer: 3 types of franchise:
i.) Traditional store - franchisee develops and operates a Great American Cookie store selling cookies, brownies, cupcakes, and related food items and beverages.
ii.) Baking Kiosks - kiosks, carts, wagons, or tables that include baking facilities.
iii.) Non-Baking Kiosks - Kiosks that do not include baking facilities. Non-Baking Kiosks may either be operated in conjunction with a Traditional Store or a Baking Kiosk that is located in close proximity to the Non-Baking Kiosk, or an off-site baking facility in which the products will be prepared and stored prior to their delivery to the Non-Baking Kiosk.
Financial Assistance: If the franchisee enters the franchise agreement for a Co-Branded Franchise to be operated within the premises of the franchise with one of the Co-Brand Partners, the franchisor may offer financing to provide capital to cover the amount of the granting fee and the initial franchise fee. This financing program is only available to eligible franchisees of one of the Co-Brand Partners who are purchasing a Co-Branded Franchise. Under the Co-Branded Franchise program, the franchisor will provide financing for the $10,000 initial franchise fee for an adjacent store or a counter store. The franchisor does not offer any other financing program.
Training and Assistance: The franchisor will provide initial training for the franchisee and up to two additional employees, at their offices in Norcross, Georgia. The first stage of initial training may include up to two days of orientation at the offices or via webinar on the topics of merchandising, construction, business planning, purchasing, and the new Store checklist. The franchisee is then required to attend 5 days of on-the-job training at a designated training location for purposes of practical application of skills taught during classroom training. They must also attend five additional days of training at corporate offices. At the option of the franchisee, the franchisor will conduct between two and five days of additional initial training at the franchise store prior to its opening.
Territory: The franchisee will not receive an exclusive territory and must locate an acceptable site within the non-exclusive site selection area that was specified by the franchisor.
Term of Agreement and Renewal: The length of the franchise term is 10 years, with an option for renew for one successor ten-year term.
Obligations and Restrictions: At all times that the franchise store is open for business; it must be under the personal, on-premises supervision of the franchisee or a manager. The manager must successfully complete the initial training program and any other training programs required.
Total Number of Units: 286 outlets at the end of 2007
Total Number of franchises Units: 286 franchised outlets at the end of 2007
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Franchise Fee | Franchise Fee | $25,000 |
| Real Estate and Improvements |
Traditional Store $110,000. Baking Kiosk: $110,000. Non-Baking Kiosk with Off-Site Baking Facility: $114,000 |
Traditional Store: $197,500. Baking Kiosk: $170,000. Non-Baking Kiosk with Off-Site Baking Facility: $242,500 |
| Cookie Ingredients | $5,000 | $10,000 |
| Other Opening Inventory | $2,500 | $9,500 |
| Computer System | $6,000 | $10,000 |
| Travel and Living Expenses While Training | $1,000 | $5,000 |
| Grand Opening Advertising | $5,000 | $5,000 |
| Other Prepaid Deposits and Expenses | $3,000 | $5,000 |
|
Professional Fees Insurance (3 months) Miscellaneous Opening Costs |
$2,000 $2,500 to $3,500 $5,000 to $10,000 |
$6,000 |
| Additional Funds (3 Months) | $5,000 | $10,000 |
| TOTAL |
Traditional Store: $167,000 Baking Kiosk: $167,000 Non-Baking Kiosk with Off-Site Baking Facility: $171,000 |
Traditional Store: $296,500 Baking Kiosk: $269,000 Non-Baking Kiosk with Off-Site Baking Facility: $314,500 |
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| Royalty Fee | 6% of Net Sales for the preceding week |
| Marketing Fee | 2% of Net Sales for the preceding week |
| Local Marketing Expenditures | 2% of Net Sales based on Net Sales for the previous quarter |
| Software Updates | Actual cost of updated software programs and training (if applicable) |
| Interest | 18% per year (or maximum legal rate, if less) |
| Late Fee | $25 per week |
| Additional Training | Currently, $300 per employee or agent for each full or partial day |
| Additional Consulting Services | Currently, $300 per employee or agent for each full or partial day, plus their travel and living expenses |
| Assigned Trainers | The franchisors actual costs and expenses, including travel and living expenses for the trainers |
| Product, Service, Supplier, and Service Provider Review | The franchisors reasonable cost of inspecting the supplier, testing the proposed product, or evaluating the service provider or proposed service, including personnel and travel costs |
| Relocation Charge | The franchisors reasonable costs incurred in evaluating a proposed new Site |
| Transfer Fee | With several exceptions, $10,000 for a transfer of the store or Franchise Agreement |
| Transfer Referral Fee | $15,000 |
| Successor Fee | 30% of the then-current Franchise Fee |
| Continuing Inventory | $2,500 - $7,500 |
| Insurance | Cost of the premium plus a reasonable fee for services in procuring the insurance |
| Accounting Fees | Actual cost of services (if applicable) |
| Audit | Cost of audit, including travel and living expenses, plus interest on the amount of the under-payment at an annual rate of the lesser of 18% or the maximum interest rate permitted by law |
| Inspection | The franchisors reasonable expenses incurred in inspecting the business, including travel and living expenses, wages, and other expenses for employees |
| Remedial Expenses | The franchisors reasonable expenses incurred in correcting the operational deficiencies |
| Enforcement Expenses | The franchisors reasonable cost of de-identifying the store |
| Indemnification | The franchisors liabilities, fines, losses, damages, costs, and expenses (including reasonable attorneys’ fees) |
Date of FDD: 06/06/2008
The above information has been taken from the UFOC/FDD of Great American Cookies
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