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Great American Cookies Franchise Cost & Fees

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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