Startup Investment
How much does it cost to build a 16 Handles?
16 Handles was designed to be an affordable investment due to our unique, modular designs and millwork packages. As one of the fastest growing frozen dessert QSR’s, we are able to pass along many volume discounts on equipment, technology, and supplies to our franchise partners.
BASIC COST
Startup Cost Range*:
$242,500 – $645,000 USD**
The initial investment for a new location will range depending primarily on the size, configuration, rent, and condition of the desired storefront. We can provide more accurate estimates once we confirm those details.
ROYALTY FEE:
MARKETING FEE:
* Per unit developed. Startup cost is estimated, dependent on site size, location and current condition. Range includes a one-time non-refundable franchise fee of $30,000 due to us at franchise agreement signing.
What type of locations do we offer?
We specialize in developing traditional retail storefronts operated year around. A retail storefront is generally either free standing, inline, or a kiosk. We operate in both urban and suburban markets, as well as shopping malls, college/universities, and event venues such as sports arenas. These locations provide our signature self-serve experience with seating, as well as takeout, delivery, catering, and drive-through (location permitting).
We also offer non-traditional storefronts on a limited basis. This includes express units with a reduced menu and mobile trucks. These may be used for specific events and locations, such as airports, fairs, or theme parks.
The ideal storefront is between 1,200 and 2,000 square feet, though the layout can be flexible, especially when considering alternative storage space (i.e., basements or shared storage rooms).
Are there financial qualifications?
We do require our franchise partners to meet certain financial requirements to work with us. This helps to ensure our brand maintains high standards across all markets and our operators are able to invest in their stores appropriately.
Available Capital: $150,000
Minimum Net Worth: $400,000
Do you offer or suggest financing?
Many of our franchise partners finance some or all of their equipment and startup costs in order to keep extra cash on hand for the first months of operation. We do not provide financing ourselves, but we do work with several high-quality lenders to propose various opportunities to you depending on the project. Typically, lenders prefer franchise partners with good credit and business experience.
Can you provide a startup cost breakdown?
The following chart shows estimated startup costs for a traditional retail storefront. Several factors, including the size, configuration, and rent of the desired storefront, influence the startup costs, which is why there is a large range. All numbers come from Item 7 of our Franchise Disclosure Document (FDD). The FDD, which is provided to candidates during the recruitment and mutual evaluation process, contains notes that provide more details about each of the startup costs listed below. Franchise Partners with good credit typically finance most of the startup costs in order to keep extra cash on hand for the first months of operation.
| Type of Expenditure | Amount | When Payable | Method of Payment | To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Franchise Fee | $30,000 | When you sign the Franchise Agreement | Lump sum | Us |
| Rent and Security Deposit | $5,000 to $30,000 | As arranged | As arranged | Landlord |
| Utility and Other Deposits | $500 to $3,000 | As arranged | As arranged | Utility companies and Others |
| Architect and Design Fees | $7,500 to $20,000 | As arranged | As arranged | Approved architect and design company |
| Leasehold Improvements | $60,000 to $180,000 | As arranged | As arranged | Independent contractors |
| Exterior Signage | $3,000 to $12,000 | As arranged | As arranged | Suppliers |
| Furniture, Fixtures and Equipment (including soft serve machines) | $110,000 to $310,000 | As arranged | As arranged | Suppliers |
| Smallwares | $2,500 to $5,000 | As arranged | As arranged | Suppliers |
| POS System and Back-Office Computer; License Fee | $500 to $2,000 | As arranged | As arranged | Suppliers |
| Office Equipment and Supplies | $500 to $2,000 | As incurred | As arranged | Suppliers |
| Business Licenses & Permits | $500 to $2,000 | As incurred | As arranged | Local, state and other government agencies |
| Professional Fees | $500 to $5,000 | As arranged | As arranged | Accountant, attorney, and architect |
| Initial Inventory of Product and Paper Supplies | $5,000 to $10,000 | As incurred | As arranged | Approved distributors |
| Insurance (initial 3 months ) | $1,000 to $3,000 | As arranged | As arranged | Insurance providers |
| Training Expenses (travel and accommodation) | $500 to $3,000 | As arranged | As arranged | Airlines, hotels, and employees |
| Grand Opening Marketing | $8,000 | In first 60 days of operation | As arranged | Suppliers |
| Additional Funds (for initial period of operations) | $7,500 to $20,000 | As needed | As arranged | Your employees, suppliers and creditors |
| TOTAL ESTIMATED INITIAL INVESTMENT | $242,500 to $645,000 |
Special Notes:
Rent and security are market specific; In large metropolitan cities, security deposit may be substantially higher.
Low end of furniture, fixtures, and equipment includes some equipment financing from third party vendors.
Leasehold improvements vary based on markets, material cost, and condition of rented space; low end may include landlord contribution or work.