In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Bang Cookies franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Bang Cookies franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Bang Cookies outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Bang Cookies franchise opportunity

Section V – Presentation and analysis of Bang Cookies financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 gross revenue (revenue retail and aggregators), cost of goods sold, payroll costs, Royalty Fee, Brand Fund, and net before rent and operational expenses for the Jersey City (downtown) company-owned Bang Cookies location (275 square foot outlet), which was open and operating for the full 2023 calendar year

• 2023 gross revenue (revenue retail and aggregators), cost of goods sold, payroll costs, Royalty Fee, Brand Fund, and net before rent and operational expenses for the Menlo Park company-owned Bang Cookies location (800 square foot outlet), which was open and operating for the full 2023 calendar year

Section VI – Key ratios, comparables, computations, and analyses for the Bang Cookies franchise opportunity (exclusive content for Platinum subscribers)

Section I – Bang Cookies Franchise Costs

• Bang Cookies franchise costs (bakery location), based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $55,000
• Construction and Leasehold Improvements:  $75,000 to $150,000
• Lease Deposits – Three Months:  $15,000 to $40,000
• Furniture, Fixtures, and Equipment:  $176,370 to $224,020
• Signage:  $15,000 to $25,000
• Computer, Software, and Point of Sales System:  $3,000
• Grand Opening Marketing:  $10,000 to $20,000
• Initial Inventory:  $5,000 to $10,000
• Utility Deposits:  $1,500 to $2,000
• Insurance Deposits – Three Months:  $500 to $1,000
• Travel for Initial Training:  $3,500 to $7,500
• Professional Fees:  $2,000 to $7,500
• Technology Implementation Fee:  $1,500 to $3,000
• Licenses and Permits:  $2,000 to $4,000
• Additional Funds – Three Months:  $40,000 to $70,000
• Total Estimated Bang Cookies Franchise Costs:  $404,370 to $712,020

Section II – Bang Cookies’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Bang Cookies’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $55,000
• Royalty:  6% of Gross Sales
• Brand Development Fund:  up to 2% of Gross Sales, currently not charged
• Local Marketing:  2% of Gross Sales
• Local and Regional Advertising Cooperatives:  as established by cooperative members

Section III – Number of Franchised and Company-Owned Bang Cookies Outlets

Franchised

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Company-Owned

2021

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

2022

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  3
• Net Change:  +1

2023

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  4
• Net Change:  +1

Section IV – News Updates on the Bang Cookies Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Bang Cookies Franchise (Item 19, 2024 FDD)

• Calendar Year  means, as to each respective year, the 12 month period commencing on January 1 and ending on December 31.

• Company Owned Outlet means an Outlet owned either directly or indirectly by Bang Cookies, its affiliate, or any person identified in Item 2 of the Disclosure Document. A Company Owned Outlet also includes any Outlet that is operated as a joint venture owned in part by Bang Cookies, its affiliate or any person identified in Item 2 of the Disclosure Document, or that is managed by Bang Cookies, its affiliate, or any person identified in Item 2.

• Franchise Outlet refers to a Bang Cookies Shop operated under a Franchise Agreement that is not a Company Owned Outlet.

• Outlet refers to a Bang Cookies Shop that is either a Company Owned Outlet or a Franchise Outlet, as the context requires.

• The financial information was not prepared on a basis consistent with generally accepted accounting principles. Bang Cookies does not have any Franchise Outlets. Data for Bang Cookies’ Company Owned Outlet is based on information reported to it by its affiliate. The information in this analysis has not been audited, is based on historical financial data and is not a forecast or projection of future financial performance.

• During the 2023 Calendar Years, Bang Cookies had four total Company Owned Outlets, three were open and operating for the full calendar year. Of those three, the Newark Airport location is a small-scale kiosk that is not indicative of a franchise offering and is therefore excluded. Bang Cookies’ two remaining Company Owned Outlets are detailed below:

Part 1 – Jersey City (Downtown) 2023 (275 square foot outlet)

Income

• Revenue Retail:  $612,754.77
• Aggregators:  $87,588.79
• Gross Revenue:  $700,343.56 (100.0%)

Prime Costs

• COGS:  $154,075.59 (22.00%)
• Payroll:  $148,168.49 (21.16%)
• Total Prime Costs:  $302,244.08 (43.16%)

Franchisee Expenses

• Royalty Fee:  $42,020.61 (6%)
• Brand Fund:  $14,006.87 (2%)

Net Before Rent and Operational Expenses:  $342,072.00 (48.84%)

Part 2 – Menlo Park 2023 (800 square foot outlet)

Income

• Revenue Retail:  $446,524.08
• Aggregators:  $10,932.98
• Gross Revenue:  $457,457.06 (100.0%)

Prime Costs

• COGS:  $100,640.55 (22.00%)
• Payroll:  $120,644.93 (26.38%)
• Total Prime Costs:  $221,305.48 (48.38%)

Franchisee Expenses

• Royalty Fee:  $27,447.42 (6.00%)
• Brand Fund:  $9,149.14 (2.00%)

Net Before Rent and Operational Expenses:  $199,555.02 (43.62%)

Part 3 – Average (calculated by Franchise Chatter)

Income

• Revenue Retail:  $529,639.42 (91.49%)
• Aggregators:  $49,260.88 (8.51%)
• Gross Revenue:  $578,900.31 (100.00%)

Prime Costs

• COGS:  $127,358.07 (22.00%)
• Payroll:  $134,406.71 (23.22%)
• Total Prime Costs:  $261,764.78 (45.22%)

Franchisee Expenses

• Royalty Fee:  $34,734.02 (6.00%)
• Brand Fund:  $11,578.00 (2.00%)

Net Before Rent and Operational Expenses:  $270,823.51 (46.78%)

• Gross Sales means the total revenue derived by each Bang Cookies Shop less sales tax, discounts, allowances, and returns.

• Food Cost means the direct costs incurred by the Shop for all food and beverage ingredient items that are used in preparing a menu item. “Food Cost” includes the cost of paper goods used to serve the menu items but does not include Labor Cost or other expenses.

• Labor Cost means the gross wages paid to employees in connection with the preparation and service of menu items. “Labor Cost” includes gross wages paid to general managers and assistant managers.

• In Shop Labor Cost means the gross wages, benefits, and associated payroll taxes paid to on-site Restaurant location employees in connection with the preparation and service of menu items, but excluding the wages paid to Bakery Location or commissary kitchen employees, if any, that prepare menu items that are pre-prepared and delivered to the Restaurant.

• For Company Owned Shops serviced by Bang Cookies’ corporate commissary, In Shop Labor Cost does not include labor costs associated with commissary kitchen employees that prepare menu items that are pre-prepared and delivered to Bang Cookies’ Company Owned Shops and that are further prepared and served on-site at the Company Owned Shop Location.

• For Franchise Shops that operate as a Satellite Location, In Shop Labor Cost does not include labor costs associated with Bakery Location kitchen employees that prepare menu items that are pre-prepared and delivered to the Satellite Location and that are further prepared and serviced on-site at the Satellite Franchise Shop Location.

• Gross Profit means Gross Sales less Food Cost and Labor Cost. Gross Profit is not net profit or income and, except as to Food Cost and Labor Cost, does not include the deduction of all other expenses incurred by a Bang Cookies Shop including, but not limited to, payroll taxes, employee benefits, operating expenses (including, but not limited to, rent, utilities, marketing, training, insurance, professional fees, maintenance, administrative, and operational expenses), interest, taxes, depreciation, and amortization.

• Some Outlets have earned these amounts. Your individual results may differ. There is no assurance that you’ll earn as much.

Section VI – Bang Cookies Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️