How Much it Costs to Start a Rita’s
Startup costs vary by location type. Here are some guidelines for what you can expect.
Rita’s startup costs can be quite affordable, especially compared to other food service franchises. This is especially true once you consider the impact of the mobile options that allow you to increase sales opportunities with very modest additional investment.
Types of locations
A standard shop is the most common type of Rita’s shop, and can be operated seasonally or year-round. Standard shops include walk-up and walk-in service models and depending on the location, they may include indoor or outdoor seating. Franchise owners with at least one standard shop can also expand their business with a satellite unit or mobile unit. Adding catering to your services also creates a significant opportunity for increased revenue.
Rita’s also offers the opportunity to purchase Express Units in unique locations which, due to a number of reasons, may not offer the full menu sold at a standard shop. Examples of Express Unit locations include parks, universities, sports arenas, convention centers, airports, transportation terminals, theme parks, military bases and similar.
Whichever type of shop you are looking to open, we require a minimum of $100,000 in liquid capital and $300,000 in net worth. Candidates with good credit typically finance most of the startup costs in order to keep extra cash on hand for the first months of operation.
The following charts show estimated startup costs for different development options. Several factors 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 following.
|Type of Expenditure||Amount||Method of Payment||When Due||To Whom Payment is to be Made|
|Initial Franchise Fee||$35,000||Lump Sum||At signing of Franchise Agreement||Us|
|Lease Deposit||$0 - $11,000||Lump Sum||At Signing of Lease||Landlord|
|Leasehold Improvements||$50,000 - $241,671||As Agreed||Before opening, as incurred||Suppliers|
|Equipment||$60,928 - $120,000||As Agreed||Before opening, as incurred||Us and/or Suppliers|
|Permits & Licenses||$685 - $10,000||As Incurred||Before opening, as incurred||Governmental Authorities|
|Signs & Awnings||$3,000 - $22,390||As Agreed||Before opening, as incurred||Suppliers|
|Insurance||$200 - $3,500||Lump Sum||Before opening, as incurred||Insurance Carrier/Broker|
|Initial Order||$8,000 - $17,500||As Agreed||Before opening, as incurred||Us and/or Suppliers|
|Minimum New Shop Marketing Expenditure||$12,000||Lump Sum||Between 30 days before opening and 180 days after opening||Us and/or Suppliers|
|Training||$50 - $5,000||As Incurred||Before opening, as incurred||Food and lodging providers|
|Architect and Attorney Fees||$5,000 - $20,000||As Incurred||Before opening, as incurred||Architect/Attorney|
|Additional Funds (3 months)||$20,000 - $30,000||As Incurred||Before and after opening, as incurred||Your Employees, Suppliers and Creditors|
|TOTAL||$194,863 - $528,061|
Additional details about all of these startup costs and other store configurations can be found in our Business Model ebook. Download your copy by completing the form below and starting a conversation.