Do you want to open a restaurant business by buying Street Corner franchise? If YES, here is how much it cost to open Street Corner franchise successfully. If you are looking towards opening a Street Corner Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location.
Street Corner was founded in 1988 and they began franchising in 1995, about 25 years ago. The current CEO is Peter La Colla and they have their corporate head office at 2945 S.W. Wanamaker Dr. Topeka, KS 66614, USA. As of the 2021 Franchise Disclosure Document, there are 45 franchised Street Corner locations in the United States of America. The largest region is the Northeast with 18 franchise locations
After Peter LaColla and Daniel McCabe opened a restaurant called Street Corner Cuisine in a mall in Topeka, Kansas, they noticed there was no place to buy cigarettes, newspapers or aspirin in the shopping center. To meet the need, the partners opened Street Corner, a convenience store with the look of an old-fashioned newsstand, in 1988.
Street Corner has worked for over 30 years to create a friendly, welcoming, well-trusted identity for their family of franchises. Their concept is simple–they offer a friendly, well-designed, attractive place to stop, take a break from their shopping or job and buy that well-needed pick-me-up that customers can’t find anywhere else.
In addition to favorite convenience store food products, Street Corner is also stocked and ready with over-the-counter remedies, office items, souvenirs, gifts and lottery tickets. As an added bonus, unlike many other franchise businesses, at Street Corner you may even customize some of your products, vendors and services to suit your own favorites or regional trends and preferences.
Street Corner convenience stores are located in more than 40 of the largest, most popular shopping malls and other high traffic areas–hospitals, office buildings and college campuses around the country, providing an easy and affordable opportunity to be a part of the fast-moving, faster growing convenience store industry.
Unlike many franchise offers, joining Street Corner’s family requires no previous experience. They provide full training and support for starting and operating your Street Corner business. They make it easy for you to be successful. Here are areas where you are expected to spend money and the cost associated with it;
Financial Investment Required to Open a Street Corner Franchise
1. Initial Investment Range: $99,400 – $1,719,800
2. Franchise Fee: $24,900
3. Royalty Fee: 4.95 percent of Gross Sales
And the Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.
Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.
4. Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution
At least 1 percent per calendar year and the Due Date: for this is Monthly. Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two-thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.
Centers owned by Street Corner and its affiliates are also members of their respective local Cooperative and each company-owned Center has the same voting rights as the franchised locations within the Cooperative. If the company-owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.
- Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
- Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
- Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.
Please note that you must reimburse Street Corner if it is held liable for claims arising out of your franchise operations.
- Insurance: Reimbursement of costs the franchisor’s out-of-pocket costs.
- Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date: Due on receipt of invoice.)
Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.
- POS Hardware and Software: Depends upon vendor and products purchased. (Due Date: Depends upon vendor and products purchased.)
- Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date: As incurred.)
Payable to Street Corner if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Street Corner is required to defend your unsuccessful claim against it.
- Veteran Incentives: $1,500 for training fee
- Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If requirements are met, franchisees can renew for one additional term of 10 years.
- Financial Assistance: Street Corner has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll et al.
- Initial Investment: $99,400 – $1,719,800
- Net-worth Requirement: $100,000
- Liquid Cash Requirement: $30,000
- Ongoing Initial Franchise Fee: $24,900 – $24,900
- Ongoing Royalty Fee: 4.95%
- Ad Royalty Fee: $899 /yr.
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