Franchise Fee

$25,000 (Single Store)

The franchise fee makes available to the new franchise holder all information and experience inherent within the Henry’s Gelato enterprise. The cornerstone of Henry’s success is encapsulated in the training program at the Gelato University. During this initial six-day training period, each franchisee will learn the fundamentals of product recipes and manufacture, store management, and retail operations. Because Henry’s Gelato is a growing and evolving company that constantly works to improve service, the product, and the process, ongoing support is available for the life of the franchise term. Henry’s talented training staff is made up of dedicated and passionate individuals focused upon your success.

UFOC/FDD Review Fee

$500 (returnable)

The UFOC/FDD review fee is assessed when a prospective franchisee requests a copy of the Uniform Franchise Offering Circular (UFOC)/Franchise Disclosure Document (FDD). Upon a signed agreement to purchase a Henry’s Gelato franchise, this fee is returned to the franchisee.

Lease Deposit

$1,800 - $8,000

The lease deposit usually equals one month’s rent and a security deposit equal to one month’s rent. The monthly rental fees of leased premises vary widely and depend upon the store location and local real estate rental market conditions. Rental fees may range between $900 and $4,000 monthly for 800 to 1,500 square feet. Additionally, some lessors may require security deposits or rental payments upon execution of the lease. These items could include real estate taxes, percentage rent, utilities, maintenance, and insurance and will cause the franchisee to incur higher costs.

Leasehold Improvements

$10,000 - $220,000

Leasehold improvements include, but are not limited to, construction up-fit costs, signs and awnings, store construction, and fixtures. The initial investment for leasehold improvements will vary depending upon the size of the store and its location. Construction costs in some areas may exceed these estimates. These amounts reflect the historical costs incurred by existing Henry’s Gelato locations.

Permits & Licenses

$100 - $2,500

The cost of permits and licenses will depend upon the city, county, and state in which the store is located. In most cases, the greatest amounts will be spent for Use and Occupancy Permits and Building Permits.

Architect & Attorney Fees

$1,500 - $20,000

Franchisees will usually require the services of an architect to fit the gelato store work flow in the proposed site. The franchisee may also be required to have an architect and/or an attorney present at local zoning hearings for buildings approvals or permits.

Prepaid Insurance Premium

$1,500

The cost of insurance coverage required by the Franchise Agreement will vary with each location. Typically, the insurance carrier or agent will require a full annual premium.

Utility Costs & Deposits

$500 - $1,500

This estimate includes deposits necessary for water, gas, sewer, electric, telephone and other utility services required for the store.

Equipment

$20,000 - $78,000

The equipment estimate depends upon numerous factors, such as the decision to manufacture or purchase product, size of store, etc. The equipment estimate may include all or part of the following:

• batch freezer machine
• two-door upright refrigerator/freezers (2)
• gelato display freezer
• refrigerated pastry display unit
• upright lobby display freezer
• upright refrigerated beverage display unit
• computer PCs for menu display and office use (3)
• flat screen TVs (up to 3)
• safe
• cash register(s)
• miscellaneous equipment and supplies

Initial Inventory:

Gelato manufacture -- $10,000 - $30,000

Gelato base ingredients must be purchased in sufficient quantity of flavors and depth of inventory to support the projected needs of the store. Often, a single flavor purchase is large enough to make numerous batches over a period of weeks or months.

Other items -- $800 - $2,000

The initial inventory of other items consists of paper goods and miscellaneous supplies.

Training

$250 - $2,000

One week of training is provided as a free service to all franchisees. However, franchisees are responsible for their own transportation, lodging, and meals during the six-day training program.

Start-up Funds (three months)

$10,000 - $30,000

Prior to opening the store and for a period of three (3) months after the opening, a new franchise will need approximately $10,000 to $30,000 in working capital for such items as rent, payroll, supplies and utility costs.

TOTAL INVESTMENT

$81,450 - $420,500

The total investment is an estimate. The numbers will vary depending upon the geographic location and market conditions of the store.