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How Much Does It Cost to Open Ben and Jerry Franchise?

Do you want to open a frozen yogurt business by buying Ben and Jerry franchise? If YES, here is how much it cost to open a Ben and Jerry franchise successfully. If you are looking towards opening a Ben and Jerry Franchise, it will be nice for you to have a of what the company represents before opening their franchise in your location.

Ben and Jerry Franchising LLC started operation in 1978 and they began selling franchise in 1981. They have their corporate headquarters at 30 Community Dr. South Burlington, VT 05403, USA and presently they have an estimated 556 franchise units in operation.

Ben and Jerry’s Franchise is an American company that manufactures ice cream, frozen yogurt, and sorbet. Today it operates globally as a fully owned subsidiary of Unilever. Its present-day headquarters is in South Burlington, Vermont, with its main factory in Waterbury, Vermont.

The company also operates and franchises scoop shops; provides ice cream, catering services and cakes; and provides gift items. It distributes its products through supermarkets, grocery stores, convenience stores, franchise scoop shops, restaurants, and other venues in the United States and internationally.

Financial Investment Required to Open a Ben and Jerry Franchise

Ben and Jerry’s franchise fee is estimated at $37,000, with total initial investment range of $156,385 – $486,000. Here are areas where you are expected to spend money and the cost associated with it;

1. Preliminary Agreement Deposit: $18,500

2. Initial Franchise Fee: $18,500 to $37,000 ($18,500, if applicable, will be credited from the Deposit)

Please note that, if you have paid a Deposit, it will be applied toward the initial franchise fee due for your type of Shop upon signing the Franchise Agreement. You will not sign the Franchise Agreement and pay the initial franchise fee until a site has been authorized.

3. Plans, Development, and Permits: $3,500 to $12,000

Please note that you must pay a design firm to prepare layout, dimensions, and preliminary drawings and to prepare final plans for construction based upon the standardized design and specifications that the franchisor provides. As of the date of the Disclosure Document, the franchisor has one designated “system design firm” that you may use for the designs, specifications, and services for your location.

You may use a local design firm so long as the local design firm meets the franchisor’s qualifications. Please note that the costs listed are average based on completing design work for a standard vanilla shell; sites not brought to vanilla shell basic standards will incur additional expenses.

4. Leasehold Improvements and Construction: $80,000 to $200,000

Please note that these costs are based on an estimated range of approximately $100 to $135 per square foot for each Shop. Costs may be significantly higher in certain areas such as New York, Los Angeles, and others, as well as tourist areas and coastal regions.

5. Furniture, Fixtures, Equipment, Casework, and Smallwares: $65,000 to $125,000

Please note that you must purchase certain items of equipment, including smallwares, fixtures, furniture, and trade dress, in order to open and operate the Shop as required by the franchisor’s specifications.

6. Signage: $5,000 to $15,000

Please note that the location of some shops may require additional signs and design work that may increase costs beyond the estimate in this category. Also, some franchisees may request additional signage that may increase the costs beyond the estimate in this category.

7. Professional Fees: $3,000 to $6,000

Please note that you should review the lease, Franchise Agreement, and a business plan with an attorney, accountant, and/or other consultants.

8. POS, Internet Connectivity, and Telephone: $4,600 to $5,300

Please note that you are required to purchase a Ben & Jerry’s approved point-of-sale system (“POS System”) and enter into a purchasing contract for the system hardware, software, staging, integrated credit card, help desk, and hardware warranty.

9. Deposits: $3,000 to $8,000

Please note that the estimate is for certain deposits required by landlords, utilities, and other vendors.

10. Initial Training: $1,000 to $3,000

Please note that the training costs estimated are for airfare, rental car, hotel, and meals, but do not include other items such as wages or salaries.

11. Inventory: $8,000 to $14,000

Please note that you will be required to purchase sufficient inventory to open and operate the Scoop Shop under the franchisor’s specifications.

12. Insurance: $500 to $2,500

Please note that you must obtain certain types and amounts of insurance (general liability, workers’ compensation). Insurance deposits may be required by your insurance company, for your liability insurance and workers’ compensation.

13. Grand Opening Advertising: $3,000

Please note that you must conduct a Grand Opening event within 90 days of opening your Scoop Shop. You must spend an amount up to $3,000 on activities as outlined in the Grand Opening program outlined in the Operating Manual.

14. Subtotal: $184,100 to $430,800

Please note that the estimates noted above are based on the franchisor’s estimates for the size of the Shops and the product line offered at the Shops. These estimates do not include estimates for real estate purchases should you wish to purchase the property for your Shop.

15. Additional Funds (3 months): $55,000

Please note that you will need additional funds to support on-going expenses, such as payroll, rent, and utilities, to the extent that these costs are not covered by sales revenue. New businesses often generate a negative cash flow. The franchisor estimates that the amount given will be sufficient to cover on-going expenses for the start-up phase of the business, which it calculates to be 3 months.

16. Total: $239,100 to $485,800

Please note that this estimate is based on the franchisor’s experience, and that of its Parent, with respect to franchised and company-owned Shops.

For In-Line Shops (approximately 450 to 650 square feet)

The total estimated initial investment necessary to begin operating a Ben & Jerry’s in-line shop ranges from $207,100 to $336,800.

For Kiosk Scoop Shops (approximately 100 to 200 square feet)

The total estimated initial investment necessary to begin operating a Ben & Jerry’s kiosk scoop shop ranges from $158,985 to $292,850.

In Summary;

The Financial Requirements for owning a Ben and Jerry’s franchise attracts Initial investments: $156,385 – $486,000, a Net-worth Requirement: $350,000 and Liquid Cash Requirement: $100,000. With an Ongoing fee of (Initial Franchise Fee) of $16,000 – $37,000, Ongoing Royalty Fee of 3 percent and Ad Royalty Fee 4 percent.