Our startup costs range is based on real estate choices
It's worth noting that our startup costs range is based on real estate choices. The upper end of the ranges shown in the chart below reflect the cost of purchasing land and owning the building. Those who lease — which describes the majority of our franchisees — will be toward the lower end. Remodeling an existing restaurant location can also bring down costs. At the moment, many such opportunities exist.
Costs are variable based on local market conditions.
| TYPE OF EXPENDITURE | AMOUNT 1 | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS TO BE MADE |
|---|---|---|---|---|
| Initial Franchise Fee 2 | $35,000 | Lump Sum | At time you sign franchise agreement | Us |
| Travel and Training Expenses for initial training | $25,000 to $65,000 | As Incurred | During training | Hotels, Restaurants and Certified Trainers |
| Pre-opening Payroll 3 | $25,000 to $40,000 | As Incurred | Prior to opening | Cooks, managers and other employees |
| Rent and Security Deposit (3 months rent + 1 month security)4 | $64,000 to $128,000 | Lump Sum and then Monthly Installments | Monthly (pre-opening and then monthly) | Landlord |
| Leasehold Improvements5 | $425,000 to $1,400,000 | Lump Sum or Financed | Prior to opening | Suppliers, Contractors |
| Furnishings, Fixture and Equipment | $166,500 to $416,500 | Lump Sum or Financed | Prior to opening | Suppliers, Contractors |
| TV/Audio/Video/Security | $95,000 to $137,000 | Lump Sum or Financed | Prior to opening | Suppliers |
| Signage | $15,000 to $35,000 | Lump Sum or Financed | Prior to opening | Sign company, landlord (possibly) |
| Opening Inventory Food and Beverage | $17,000 to $25,000 | Lump Sum | Prior to opening | Suppliers |
| Security and Utility Deposits6 | $2,500 to $10,000 | Lump Sum | Prior to opening | Utility companies, equipment lessors |
| Insurance Premium - 3 months | $15,000 to $30,000 | Terms may be available | Terms may be available | Insurance company |
| Grand Opening7 | $5,000 to $10,000 | As Incurred | As Incurred | Suppliers |
| Architect Fees | $35,000 to $85,000 | Lump Sum and/or Terms | Prior to opening | Architect |
| Professional Fees | $2,000 to $5,000 | Lump Sum and/or Terms | Prior to opening and ongoing | Accountant, lawyer, real estate broker |
| Small Wares | $25,000 to $35,000 | Lump Sum | Prior to opening | Suppliers |
| Liquor Licenses8 | $2,500 to $50,000 | Lump Sum | Prior to opening | State and city departments |
| Miscellaneous Costs9 | $5,000 to $15,000 | As Incurred | As Incurred | Suppliers, utilities, tradesmen |
| Additional Funds (3 months) 10 | $30,000 to $90,000 | As Incurred | As Incurred | Suppliers and employees |
| Total Estimated Initial Investment 11 | $989,500 to $2,612,000 This estimate is for a single unit franchise only; if you sign an ADA, the estimated initial investment will increase by the amount of your development fee, which is calculated $15,000 for each restaurant you commit to develop under the ADA other than your first restaurant. |
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Notes
- We do not offer direct or indirect financing to franchisees for any of these items. None of the fees payable to us are refundable except that a portion of the initial franchise fee may be refunded under the circumstances described in Item 5. We are unaware of any fees payable to third party suppliers that are refundable, although some landlords refund security deposits at the end of the lease if the tenant does not default.
- This amount is for the purchase of a single franchise. If you purchase area development rights, the initial franchise fee for your 1st restaurant is $35,000 and the initial franchise fee for each additional restaurant is $25,000. Your development fee would be calculated to include the full initial franchise fee for your 1st restaurant plus $15,000 per restaurant for each additional restaurant you commit to develop.
- You must hire certain employees before opening your Restaurant so that we can provide them with pre-opening training. This amount is an estimate of the pre-opening payroll costs for your employees who must be trained.
- These figures presume that you will be leasing the premises for your Restaurant. A Native Grill and Wings restaurant typically ranges in size from 4,800 to 6,000 square feet, although in certain higher density urban areas as well as Captive Venues (as defined in Item 12) we may authorize an “express” Native Grill and Wings restaurant concept that ranges in size from 1,800 to 3,200 square feet. The expense of leasing will vary, depending upon the size of the premises, its location, and the requirements of individual landlords. Landlords typically require security deposits equal to 1 or 2 months’ rent and may, in addition, require payment in advance of the first and/or last (or more) month’s rent. We estimate the monthly rent will range from $16,000 to $32,000 per month. The total estimated initial investment shown in the chart above includes a security deposit and rent through your 3rd month of operation. The cost to purchase real estate varies so widely that we cannot reasonably estimate the cost.
- The cost of leasehold improvements and build-out will vary widely depending upon the size and condition of the premises, whether or not there are any existing and comparable leasehold improvements on the premises, the extent and quality of improvements desired by you over and above our minimum requirements, landlord’s cash contribution to the cost of the improvements, and the like. In Arizona, and depending on location, new build-outs can range from a low of approximately $40 per square foot per year to a high of approximately $190 per square foot.
- In addition to the security deposits payable to the landlord of the restaurant premises, utility companies and equipment lessors will require security deposits. The amount of the deposits required by utility companies vary from approximately $2,500 to $10,000, but some utilities will accept the posting of a bond in lieu of the payment of a cash deposit. A typical cost for the premium for such a bond is approximately 10% of the amount of the bond being posted. The security deposits required by equipment lessors vary so widely (depending upon the amount and value of equipment leased) that we cannot reasonably estimate the cost. It has been our experience that relatively little equipment is leased except for certain equipment leased from vendors (for example, beverage dispensing machines furnished by and leased from beverage suppliers). Security deposits are not normally required for this type of leased equipment and no amount is included under the estimated cost for security deposits shown in the table above.
- You must spend at least $5,000 on local advertising during the month before opening and the 2 month period following the opening. Some franchisees may choose to spend more. After the grand opening period, you must spend at least 1% of your monthly gross revenues on local advertising throughout the term of your Franchise Agreement.
- Some states or municipalities limit the number of available liquor licenses. If this occurs in the state or municipality in which you intend to operate your Restaurant, you may not be able to obtain a liquor license or you may be required to pay a grossly inflated amount to acquire a liquor license. The estimate in the table above presumes that there is an adequate supply of liquor licenses available in your state and municipality.
- This includes utility costs and business licenses and non-re-occurring expenses.
- This estimates your expenses during the first three months of operation. These expenses include payroll costs (excluding any wage or salary paid to you), other miscellaneous expenses, and working capital. These figures are estimates based on the past experience of our franchisees.
- The lower range total represents costs if you will be using an already established restaurant facility and you undertake minor alterations to comply with our standards. The higher range total represents costs for those facilities that are built-to-suit/new. The estimates in this table are for a single franchise only. If you sign an ADA, the estimated initial investment will increase by an amount equal to $15,000 for each additional restaurant that you agree to establish under the ADA. These figures are estimates only and you may have additional expenses starting your Restaurant. Your costs will depend on a variety of factors, including how closely you follow our methods and procedures, your management skills, experience and knowledge, the local real estate market, local economic conditions, the prevailing wage rate, the local competition for our goods, and the sales level achieved during the initial period. We strongly recommend that you have independent estimates on your anticipated cost to construct, develop, open and operate your Restaurant.