What Are My Startup Costs?
A Gigi’s bakery franchise opportunity is easier to start than you might think
Most restaurant businesses are expensive to open and offer low potential returns. A Gigi’s Cupcakes franchise for sale, however, has a low initial investment, low operating costs and a high potential for profits from day one. Average unit volume is around $500,000, although some Gigi’s stores — such as Jonesboro, Arkansas, and Fargo, North Dakota, — recorded gross sales of approximately $1 million in their first year of operations. Most of our new stores bask in overwhelmingly positive response from their customers; they start lining up on opening day, eagerly waiting for the doors to open.
The typical Gigi’s Cupcakes franchise cost is between $237,200 and $397,500, including the franchise fee. Among the major capital expenditures is the cost of configuring an existing retail site into a Gigi’s Cupcakes. This cost is site-specific and varies widely as does the availability of landlord-funded “tenant improvements.”
The initial franchise fee to open a Gigi’s Cupcakes is $35,000. This fee is used by Gigi’s to assist you with site selection, in planning the layout of your Gigi’s Cupcakes location, in your initial training, and for the use of our Confidential Manuals. In addition, franchisees must pay a continuing monthly royalty fee of 5% and marketing fee of 2.5%.
The Gigi’s Cupcakes franchise cost is typically just under $300,000, and average unit volume is approximately $500,000.
Bakery franchise opportunities: A simple, proven franchise model
Gigi’s is a simple business to operate and much less expensive to build out than a typical quick-service restaurant. Gigi’s offers wider margins than the typical QSR, as well, with lower food and labor costs than many food businesses. Gigi’s has secured a family of unique and economical relationships with top food distribution companies in America. As a result — and due to our growing number of successful locations — our stores get the best ingredients at the lowest prices, with convenient order turnaround.
The break-even point for franchisees is low, with a high sales-to-investment ratio. With sales augmented by B2B opportunities, online delivery and special events and catering opportunities, Gigi’s growth potential and reach extends beyond the bakery’s four walls.
Franchisees are set up for success from day one
Everything you need to launch your business on grand opening day, such as the counters, oven, mixer, stainless steel tables and the small wares, is delivered on one truck. The contractor who did the storefront buildout will then complete installation and finishing touches. Our marketing department provides stores with seasonal promotional materials, as well as marketing support needed for store-specific events. Our Home Office team is here to support franchisees and ensure that they have what they need to succeed.
If you’d like to learn more about the cupcake franchise cost in your specific market, we want to talk to you. We can help you understand your real estate costs and assist you with financing.
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