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 (Note 1)

$25,000

$30,000

Rent (Note 2) (1 month)

$5,625

$15,000

Security Deposits (Note 3)

$10,500

$35,000

Leasehold Improvements (Note 4)

$40,000

$200,000

Blueprints (Note 5)

$12,000

$22,500

Equipment, Fixtures and Furniture (Note 6)

$95,000

$155,000

Small-wares (Note 7)

$5,000

$8,000

Computer System (Note 8)

$12,500

$18,500

Signage – Interior & Exterior (Note 9)

$6,000

$15,000

Initial Inventory & Supplies (Note 10)

$10,000

$15,000

Insurance (Note 11) (quarterly)

$2,000

$5,000

Travel & Living Expenses While Training (Note 12)

$5,000

$10,000

Professional Fees & Licenses (Note 14)

$1,500

$5,000

Catering Delivery Vehicle (Note 14) (1st 3 months)

$0

$5,200

Grand Opening Ad Fee (Note 15)

$15,000

$25,000

Additional Funds (Note 16) (3 months)

$10,000

$30,000

Total Investment

$255,125

$594,2000

Note 1
Franchise Fee. The Initial Franchise Fee is discussed in in Item 5.

Note 2
Rent. The “low” estimate assumes either a conversion in the 1,500 to 2,000 square foot range with a suburban rent of approximately $45 per square foot annually. The “high” estimate assumes any or all of the following: approximately 1500 to 2000 square feet traditional dine in restaurant with approximately 50-60 seats, multi-story institutionally owned and managed building, located in a large metropolitan statistical area at a cost of approximately $250 per square foot or more in gross rent per year or 500 to 800 square feet (nontraditional, e.g. mall food court, airport, stadium, medical or educational facility, etc.) at a cost of $225 per square foot on an annual basis..

Note 3
Security Deposits. You will need to provide security deposits to your landlord and your local utilities, such as gas, electricity and water. 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 4
Leasehold Improvements. The cost of leasehold improvements depend upon the type of unit, (mall, kiosk, traditional, multi- story, 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 specific plans. Tenant improvement allowances, if any, paid to you may defray a portion of build-out costs. The amount in the “high” category of Leasehold Improvements, contemplates an industry or historical average of $50,000 in landlord contribution or the equivalent in rent abatement

Note 5
Blueprints. 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 6
Furniture, Fixtures & Equipment. 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 7
Smallwares. 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 smallwares will vary based on expected volume of business and size of storage areas in the leasehold.

Note 8
Computer System. We require that you use a computer system (including point of sale system, security system, hardware and software) 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 Brink/Par Point of Sale (POS) and other 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 $12,500 to $18,500 depending on the size of your franchise.

Note 9
Signage – Interior & Exterior. All interior signs including the digital menu screens 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 10
Initial Inventory & Supplier. Opening inventory of products and supplies will vary based on expected volume of business, VIP opening event, up to two mock service events, and size of storage areas in the leasehold. The VIP opening event 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 11
Insurance – Quarterly. Estimated cost of quarterly premiums for the policies required by the terms of the Franchise Agreement.

Note 12
Travel & Living Expenses While Training. 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. These amounts do not include the applicable wages you may pay your trainees or any fees or expenses for training any other personnel. The “High” estimate assumes the training of two persons incurring travel and lodging expenses. Your costs may vary depending on your selection of lodging and dining facilities and mode and distance of transportation.

Note 13
Professional Fees & Licenses. 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
Catering Delivery Vehicle. Offering catering services is mandatory, unless your unit is in a stadium, airport, or similar non-traditional venue. You will need to lease or purchase an approved van, or similar vehicle, wrapped in our trade dress and equipped with racks; in certain climates the food storage area may need to be refrigerated. 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 $500 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
Grand Opening Ad Fee. You must spend this amount on the grand opening advertising campaign, including a VIP opening 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
Additional Funds. We primarily relied on the costs indicated by our experience with recent franchise-owned restaurants to compile these estimates. 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
Total Initial Investment. We primarily relied on the costs indicated by our experience with recent franchise-owned restaurants to compile these estimates. This range is not an average, but represents our estimate of the current “low” and “high” costs to open a TOSSED Restaurant. 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.


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.