The following table sets forth your estimated investment for a new THREE DOG BAKERY store of approximately 1,200 to 1,500 square feet (our recommended size). Larger stores will require larger investments.
If you are currently a licensee of Three Dog that is considering converting your licensed store to a franchised location (by signing a Franchise Agreement and Conversion Addendum), and you are currently in compliance with our Trademark License Agreement, we anticipate the costs to convert include the Initial Free (see Item 5), a reduced signage package, and the approved point-of-sale system.
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TYPE OF EXPENDITURE
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AMOUNT
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METHOD OF PAYMENT
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WHEN DUE
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TO WHOM PAYMENT IS TO BE MADE
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Development Fee
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TBD |
Lump sum
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Upon execution of multi-until development agreement
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Three Dog
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Initial Fee
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$25,000
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Lump sum
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Upon execution of Franchise Agreement
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Three Dog
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Real estate/Rent Deposit
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$4,000 to $10,000
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Lump sum
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Typically, on signing lease
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Landlord
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Leasehold Improvements
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$40,000 to $70,000
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As agreed
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Before opening
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Various contractors and suppliers
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Utility and Miscellaneous Security Deposits
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$2,000 to $4,000
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Lump sum
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Before utilities activated
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Utility companies, suppliers, and vendors
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Furniture, Fixtures, and Equipment
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$85,000 to $110,000
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As agreed
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Before opening
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Approved suppliers and vendors
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Opening Inventory
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$25,000 to $40,000
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As agreed
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Typically no later than 30 days after delivery
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Approved suppliers and vendors, including Three Dog and its affiliates.
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Insurance
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$3,000 to $5,000
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Lump sum
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Before opening
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Insurance company(ies)
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Signage (interior and exterior)
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$13,000 to $15,000
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As agreed
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As incurred
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Approved suppliers and vendors
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Travel and Living Expenses While in Training
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$3,000 to $5,000
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As incurred
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Before and during training
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Airlines, hotels, restaurants, car rental companies.
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Additional Funds – Three Months
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$25,000 to $50,000
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As incurred
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As incurred
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Employees and suppliers
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Marketing for Store Opening
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$7,000 to $9,000
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As incurred
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As incurred
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Approved supplies and vendors
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Miscellaneous
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$4,000 to $7,000
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As incurred
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As incurred
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Approved suppliers, governmental agencies, and professional advisors
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Total Estimated Initial Investment
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$236,000 to $350,000
Add Initial Franchise Fee for second store plus $5,000 per store if you also sign a multi-unit development agreement
For Existing THREE DOG BAKERY licensees converting an existing bakery to a franchise, total estimated initial investment estimated to be $36,000 (the Initial Fee plus signage upgrade of $5,000 and conversion to approved point-of-sale software system of $6,000).
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Disclaimer: Three Dog Bakery does not make an earnings claim in its disclosure document.
Currently Three Dog Bakery is not marketing to residents of or offering franchises for sale in the following states:
Hawaii, North Dakota, South Dakota, Rhode Island or Maryland.