PHYSICAL RESTAURANT INVESTMENT
We normally seek 2,000- 3,000 sq. ft. spaces in successful strip centers. We also convert vacant fast food restaurant space in free-standing buildings. The physical development costs to open a Nhinjo restaurant, including all architectural and permit fees range from $181,300 to $372,000. That does not include any Tenant Improvement Allowance (TIA) that might be negotiated by you and your broker. The low end of the range reflects the costs involved when you convert an existing restaurant space with some usable kitchen equipment.
Marketing Fee requirements are broken into two local and national categories. There is the 1% of gross receipts continuing requirement for our National Marketing Fund. The 1% is calculated and payable monthly through an Electronic Depository Transfer Account.
SINGLE STORE OR AREA DEVELOPMENT FEES
Single store opportunities are available for a limited time in certain markets. We can issue multi-unit development agreements to experienced and well-capitalized restaurant operators. Area Development Fees are determined by the potential holding capacity of the market. We negotiate a territory size and development schedule unique for every area and circumstance. When the Area Development Agreement is signed, the franchisee will pay the initial store franchise fee for the franchisee’s first restaurant. In addition, a $5,000 per store area development fee is paid at the time the Area Development Agreement is signed.
INDIVIDUAL STORE FRANCHISE FEES
The individual store franchise fee is $25,000. Each store developed after the franchisee’s first store will be credited with $5,000 from the Area Development Fee, so franchisees will owe only $20,000 additional dollars for each subsequent restaurant opened under the Area Development Agreement.
The continuing royalty rate is 3% of the gross receipts of each Franchised Restaurant, calculated and payable monthly through an Electronic Depository Transfer Account.