How Much Does It Cost To Own a TOSSED?

The estimated initial costs are our best estimate of the costs you may incur in establishing and operating your franchise.

Our estimates are based on our experience and our current requirements for opening a Tossed Restaurant location. Estimates range depending on a number of variables and the actual investment in developing and opening your unit may be greater or less than the estimates provided below depending on the location and current relevant market conditions.

Expenditure

Low Investment

High Investment

Franchise Fee

$25,000

$30,000

Rent (Per Month) (Note 1)

$5,625

$15,000

Lease Security (Note 2)

$8,500

$30,000

Leasehold (Note 3)

$40,000

$200,000

Blueprints (Note 4)

$12,000

$22,500

Equipment, Fixtures and Furniture (Note 5)

$95,000

$155,000

Small-wares (Note 6)

$5,000

$8,000

POS System (Note 7)

$12,500

$18,500

Signage (Note 8)

$6,000

$15,000

Initial Inventory (Note 9)

$10,000

$15,000

Miscellaneous (Note 10-13)

$7,500

$19,000

Catering Delivery Vehicle (Note 14)

$500

$35,000

Grand Opening Ad Fee (Note 15)

$5,000

$25,000

Additional Funds & Payroll (Note 16 & 17)

$10,000

$15,000

Total Investment

$242,625

$603,000

NOTE 1
The “LOW” estimate assumes 500 square feet (nontraditional, e.g. mall food court, airport, stadium, medical or educational facility, etc.) at a cost of $174 per square foot on an annual basis. The “HIGH” estimate assumes all of the following: approximately 3,000 square feet traditional dine in restaurant with approximately 70 seats, multi-story building, unit built using 100% union trades with significant expenditures for Tossed franchisee owned co-brand with a national yogurt franchise (portioned 2/3 Tossed & 1/3 yogurt) in an institutionally owned and managed building located in Manhattan (New York City) a design district in a top MSA at a cost of nearly $250 per square foot in gross rent per year.

NOTE 2
See rent note above. “LOW” estimates assume one-month security deposit; however, Landlord’s vary and could request a letter of credit, typically reduced over the primary lease term on an annual basis or additional security in any amount perhaps even exceeding the “HIGH” estimate dependent on Franchisee credit, quality of guarantor, landlord contribution, if any, among other factors.

NOTE 3
The cost of leasehold improvements depend upon the type of unit, (mall, kiosk, traditional, multistory, etc.) configuration, contiguous structure both laterally and vertically and size and existing condition or use of the leasehold, whether it was previously a restaurant (typically with upgraded electrical and mechanical capacity), the local cost of contract work (100% union, partial union versus non-union trades can make a 30% to 40% difference or more) and the location of the Franchise. The estimated figures include remodeling walls, ceilings, floors, and other construction including mechanical, electrical, plumbing and carpentry work.

This amount will vary based on the existing condition of the leasehold. Many locations are built in existing structures, while many others are new build-outs. You will incur expenditures in this category if you take over space which was occupied by a prior tenant. It is difficult, if not impossible, to estimate what it might cost to improve existing property without actually having an architect draw and a general contractor bid. Tenant improvement allowances, if any, paid to you may defray a portion of build-out costs.

NOTE 4
We will provide you with mandatory and suggested specifications and layouts for a TOSSED® Restaurant, including requirements for dimensions, design, image, interior layout, décor, fixtures, equipment, signs, furnishings, and color scheme. You must hire your own architect to adapt our plans to the specific shape and dimensions of the approved location for your Restaurant. You may not use your architect’s plans until they have been approved by us. Our approval only relates to how well the build-out plans implement our prototype plans and implementation and presentation of the Proprietary Marks. You and your architect must make sure that the plans comply with all applicable laws, rules, regulations, ordinances and building codes, including any relating to accommodations for disabled persons.

NOTE 5
The equipment, furniture, and fixtures, necessary for the operation of a TOSSED® Restaurant includes all equipment and furniture, sinks, refrigerators, ovens, display cases, service counters, and miscellaneous other items, many of which may be leased. Does not include freight or installs, based on where the location is geographically, the amount will vary.

NOTE 6
Opening inventory of kitchen utensils, such as mixing bowls, spoons, knives, measuring cups, utility tongs, ladles and cutting boards, necessary to operate the business. Opening inventory of small-wares will vary based on expected volume of business and size of storage areas in the leasehold.

NOTE 7
We require that you use a computer system in the operation of your TOSSED® Restaurant so that we can communicate with you via e-mail and computer-generated fax. You must purchase the Aloha Point of Sale (POS) and computer equipment we require for your TOSSED® Restaurant. If there are changes in the Confidential Operations Manual, Franchisee may be required from time to time to purchase and utilize the then current POS computer system and any related systems. See Item 8 and 11 for more information about the computer systems we require for your franchise. The cost of computer system ranges from $17,500 (for a three terminal system) to $23,500 (for a four-terminal system) depending on the size of your franchise.

NOTE 8
All interior signs including the menu boards with frames and exterior signs that may or may not bear some or all of the proprietary Marks licensed to you by us. The cost of the signs may vary depending on the type, size and location of the signs (e.g. a corner location or “endcap” will typically offer the opportunity of dual signage), and will undoubtedly be affected by municipal restrictions. This cost does not include freight or installation. Based on where your Restaurant is located, the cost of freight and installation will vary. The cost of the signage ranges from $6,000 to $20,000 depending on the size your franchise and leasehold.

NOTE 9
Opening inventory of products and supplies will vary based on expected volume of business, VIP party, up to two mock service events, and size of storage areas in the leasehold. The VIP Party and mock service events must take place prior to opening your franchise for business and are designed to let the influential residential and office individuals experience Tossed and thus convey the concept to throughout their sphere of influence.

NOTE 10
Estimated costs for telephone and utility deposits can vary considerably.

NOTE 11
Estimated cost of quarterly premiums for the policies required by the terms of the Franchise Agreement.

NOTE 12
For initial 14-day minimum training period, the “LOW” estimate assumes the training of two persons residing in the area of the training center incurring no travel and lodging expenses. The “HIGH” estimate assumes the training of two persons incurring travel and lodging expenses.

NOTE 13
We strongly recommend that you engage the services of an attorney and/or accountant to assist you in evaluating this franchise offering. You may also wish to use an attorney to assist you in lease negotiations and/or to form an entity to own the franchise. Your costs may vary depending on how much you rely on your chosen advisors and the hourly rates your advisors charge.

NOTE 14
Offering catering services is mandatory, unless your unit is in a stadium, airport, or similar nontraditional venue. You will need to lease or purchase an approved panel van, or similar vehicle, wrapped in our trade dress and equipped with racks. The estimated price of the vehicle wrap is $2,000. The high end of our estimate assumes you will lease one van which, depending on upon age and condition, will cost approximately $400 per a month. This amount may be higher or lower depending on the terms of your lease or if you choose to purchase a van. The number of vehicles required will depend on the volume of your catering sales.

NOTE 15
You must spend this amount on the grand opening advertising campaign, including a VIP event and two mock service events, to promote the opening of the Restaurant, The grand opening advertising campaign must be conducted before and during the 60-day period following the commencement of operations. The franchisor will designate the amount to be expended based on the specific DMS/MSA, type and location of the Restaurant (e.g. A prototypical Tossed Restaurant on a street in an urban area would have a higher Grand Opening Ad Fee than a Tossed Restaurant in a food court of a hospital in suburban area). We will also provide you with the grand opening advertising plan for you to conduct.

NOTE 16
Estimated payroll for pre-opening training. These figures do not include bringing in additional employees for training or a salary or draw for you while in training.

NOTE 17
This amount of operating cash necessary on a monthly basis for additional expenses incurred by the business. HOWEVER, WE CANNOT GUARANTEE THAT THIS AMOUNT WILL BE SUFFICIENT.

NOTE 17
The figures in this table are a total estimated for each TOSSED® Restaurant unit. If you are contracting for multiple units, you will pay an amount equal to the full Initial Franchise Fee for the first unit contemplated in the Multi-Unit Agreement, plus one half of the Initial Franchise Fee for each of the additional units, at the time the Multi-Unit Agreement is signed. This is the fee for the Multiple-Unit Agreement, and it is not refundable. As discussed in Item 5, the Franchise Fee for the subsequent units, purchased as a package under the Multi-Unit Agreement, is not reduced, however, the full payment is delayed for a period of time.


We relied on the costs indicated by our Predecessor’s prior affiliate-owned restaurants and franchise operated Restaurant to compile these estimates. This range is not an average, but represents the historical “LOW” and “HIGH” (proportionately determined in the event a cobranded restaurant is opened), the former a mall food court and the latter an extremely large cobranded two-level space in a multi-story high-rise office “union” building with an institutional landlord in a former retail (non-restaurant) space constructed with 100% union labor, which required significant mechanical, electrical, and plumbing work along with franchisee elected design elements requiring structural engineering to complete these architectural features. You should review your actual figures carefully for the location you selected with your architect, general contractor and other business advisors before deciding to acquire the franchise. We do not offer financing directly or indirectly for any part of the initial investment.