Three Dog Bakery Franchise Cost & Fees
Date Incorporation: 2003
Franchising Since: 2007
Description: Three Dog Bakery operates stores selling personalized cakes, muffins, pastries, and novelty baked items that are baked in the store, dog food, dog cookies, dog biscuits, dog training treats, and cat treats manufactured by the franchisor or its affiliates, as well as ancillary items such as dog bowls, leashes, and collars.
Franchise Offer: The franchisee will be granted the right to operate a single Three Dog Bakery store at a location approved by Three Dog, offering the products and services approved by Three Dog at retail.
Financial Assistance: The franchisor does not offer direct or indirect financing
Training and Assistance: The franchisee must attend a 6 day training program with Three Dog Bakery. The training program is conducted in various sites in and around Kansas City, Missouri, including the Three Dog Bakery offices, at the central production facility at which Three Dog Bakery produces products for sale in the franchised stores, and at the one "company-owned" Three Dog Bakery store.
Territory: The franchisee will be granted an exclusive territory.
Term of Agreement and Renewal: The length of the franchise term is 7 years, with an option for renew for additional terms equal to the then-current franchise term.
Obligations and Restrictions: The Three Dog Bakery store must at all times be under the direct, day-to-day, full-time supervision of the franchisee or an operating manager who has been approved by Three Dog and who has satisfactorily completed Three Dog's training program.
Total Number of Units: 35 outlets at the end of 2008
Total Number of franchises Units: 16 franchised outlets at the end of 2008
|Development Fee||$5,000 per store (minimum two stores plus Initial Fee for first two stores) or $65,000||$5,000 per store (minimum two stores plus Initial Fee for first two stores) or $65,000|
|Real Estate / Rent Deposit $||4,000||$10,000|
|Utility and Miscellaneous Security Deposits||$2,000||$4,000|
|Furniture, Fixtures, and Equipment||$100,000||$125,000|
|Signage (interior and one exterior)||$13,000||$15,000|
|Travel and Living Expenses While in Training||$3,000||$5,000|
|Additional Funds—Three Months||$25,000||$50,000|
|Marketing for Store opening||$7,000||$9,000|
|Total estimated initial investment||$268,500||$382,500|
|Name of Fee||Amount|
|Royalty||5.5% of Royalty Sales of the Bakery|
|Advertising Fee||Up to 2.5% of total Net Sales|
|Late Payment Fee||10% of the payment due|
|Interest on Late Payments||Greater of 1.5% per month or 300 basis points (3%)|
|Insufficient Funds Fee||10% of the amount of the insufficient funds check, draft/ wire transfer|
|Transfer Fee||Not more than one-half of the current initial franchise fee (currently $8,150/$16,250)|
|Maintenance and Renovation||Actual cost of ongoing maintenance and renovation|
|Legal Fees/ Indemnification||Actual costs of suit, attorneys and accountants fees incurred by Three Dog.|
|Audit Costs||If audit reveals underpayment of 2% or more, you must reimburse Three Dog for its audit costs.|
|Initial Training||Currently no fee charged. Reimburse out of pocket expenses|
Supplemental and Refresher Training
|Currently no fee charged. Reimburse out of pocket expenses|
|Up to 8%|
Date of FDD: 2009
The above information has been taken from the UFOC/FDD of Three Dog Bakery
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