Wally's Franchise Sytems offers pizza and sub franchises (graphic)

Wally's Old Fshioned Pizza & Subs (logo)


Estimated Initial Investment

Type 'A' Unit (see endnotes below)

Type of
Expenditure

Estimated Cost

Method of Payment

When Due

To Whom Payment Made

Initial Franchise Fee1

$25,000

Certified Funds

Upon execution of Franchise Agreement and 14 calendar days after review of the FDD

Franchisor

Training Expenses2   

$1,200 to $3,000

Cash

As Incurred

Vendors

Real Estate3
(Initial lease deposit)

$800 to $22,000

Cash

Upon Signing Lease

Landlord

Build-out Costs4

$35,000 to $50,000

Cash

As Incurred before opening

Approved Vendors, Suppliers

Fixtures, Furnishings and Equipment5

$20,000 to $35,000

Cash

As Incurred before opening

Approved Vendors

Opening Inventory6

$2,000 to $18,000

Cash

Before opening

Approved Vendors

Insurance7

$1,000 to $3,500

Cash

Before opening

Insurance carriers

Deposits, License Fees, Prepaid expense, Utilities8

$3,000 to $5,000

Cash

As Arranged

Approved Vendors, landlord, utilities, suppliers

Pre-opening Expenses9

$3,000 to $6,000

Cash

As Incurred

Vendors, suppliers

G & A Expenses10

$5,5000 to $15,000

Cash

As Incurred

Approved Vendors, Suppliers

Professional Service Expenses11

$1,000 to $3,000

Cash

As Incurred

Legal, Accounting firms

Additional Funds (for three months of operations)

$10,000 to $25,000

Cash

As Incurred

Franchisor, Approved Vendor, Employees, Suppliers

Total

$107,500 to $190,700

Type 'B' Unit

Type of
Expenditure

Estimated Cost

Method of Payment

When Due

To Whom Payment Made

Initial Franchise Fee

$15,000

Certified Funds

Upon execution of Franchise Agreement and 14 calendar days after review of the FDD

Franchisor

Training Expenses

$1,200 to $3,000

Cash

As Incurred

Vendors

Real Estate (Initial lease deposit

$800 to $2,200

Cash

Upon signing lease

Landlord

Build-out Costs $20,000 to $30,000 Cash As incurred before opening Approved vendors, Suppliers
Fixings, Furnishings and Equipment $15,000 to $30,000 Cash As incurred before opening Approved Vendors
Opening Inventory $2,000 to $18,000 Cash Before opening Approved Vendors
Insurance $500 to $1,500 Cash Before opening Insurance carriers
Deposits, License Fees, Prepaid expense, Utilities $1,200 to $2,000 Cash As Incurred Approved Vendors, landlord, utilities, suppliers
Pre-opening Expenses $3,000 to $6,000 Cash As Incurred Vendors, suppliers
G & A Expenses, Sinage $1,500 to $5,000 Cash As Incurred Approved Vendors, Suppliers
Professional Service Expenses $1,000 to $3,000 Cash As Incurred Legal, Accounting firms
Additional Funds (for three months of operations) $10,000 to $25,000 Cash As Incurred Franchisor, Approved Vendor, Employees, Suppliers

TOTAL

$71,200 to $140,700

Endnotes
Notes to Table Above: All payments to Franchise above are non-refundable. No amount in Item 7 will be financed by the Franchisor.
 1 The amount of the Franchise Fee depends on the type of franchised Unit. This fee is applied to providing training, site selection, pre-opening assistance, layout and design of your Unit, pre-opening consultation services, use of proprietary system and name. This Fee does not include your costs for the service of a general contractor, or labor costs for actual installation of equipment in the Unit. [top]
 2 Before you open your business, WALLY’S will provide up to 3 weeks of mandatory training for you and/or your key personnel at WALLY’S headquarters in North Canton, OH or at a site determined by WALLY’S.   See Item 11.  No separate fee is charged for standard training.  You must pay all salaries, or wages, travel, meals and lodging expenses which you and your employees incur in connection with such training which WALLY’S estimates could range from $1,200 - $3,000.  You and your employees will not be paid by WALLY’S during training.  WALLY’S will schedule training subject to the availability of trainers.   Phase II of training may be conducted at the franchisee’s Unit. [top]
 3 This amount includes the following for Type A Units:
  • Initial Rent and Deposits    $800 to $2,200
  • In addition, monthly rent tends to range from an annual rate of $12/sf to $16.50/sf for approximately 800-1600 square feet, plus applicable common area charges. [top]
 4 This amount includes the following Type A:

  • Leasehold improvements
$29,000 - $40,500
  • Architect/design fees  
$ 5,000 - $  7,000
  • Survey licenses and fees
$ 1,000 - $   2,500 
$35,000 - $50,000 

Note:  Utility hook ups are needed; electrical service (225 to 400 amps is required; and exhaust hood, vent and fire suppression system is sometimes required.  Costs for these items typically range from $1,500 to $7,000 each.  Costs could increase substantially if new or separate electric lines must be provided to support the Unit.  Costs are typically a the lower end of this range if the host facility already has walk-in cooler and freezer storage capacity and necessary sinks and plumbing available for use by the franchised business.  Costs may tend toward the high end of the range if additional coolers, freezers, electric lines or other new utility service must be provided.  Depending on the location of a “food court” type Unit, you may incur substantial costs for plumbing electrical, ventilation and other leasehold improvements.  Additional costs may also be incurred.  [top]
 5 In order to assure uniformity, and common standards of trademark usage throughout the System, you must purchase all signage and cabinetry which bear the WALLY’S Marks or otherwise incorporates WALLY’S trade dress from sources expressly authorized in advance by WALLY’S.  The estimate includes your cost to hire a competent contractor to install all equipment.  The contractor must follow lay-outs and designs approved by WALLY’S to install all equipment, signage and cabinetry; all changes must be approved in advance and in writing by WALLY’S. 
A representative of WALLY’S will assist the contractor before and during installation of the Unit.  Your cost for a contractor to install the cabinetry could range from approximately $2,500 per Unit to as much as $15,000 for a “food court” type of installation.  The estimate also includes your cost to purchase and install WALLY’S electronic reporting and POS system.  See Item 11.  If the Unit, with all fixtures and equipment is not completely installed before training begins, you must pay WALLY’S expenses, if any, caused by the delay.
   
    This amount included the following for Type A:

  • Equipment and small wares
$15,000 - $25,000*
  • POS software, security 
$  5,000 - $10,000
$20,000 - $35,000

* you may be able to lease the major equipment necessary for your Unit depending on financing arrangements, your credit rating and ability to obtain financing.  Before training begins you must install the POS electronic reporting system in accordance with WALLY”S standards and specifications.  [top]
 6 You must purchase an initial inventory of food, paper goods and supplies.  [top]
 7 You must provide prescribed levels of insurance including product liability, motor vehicle, and contractual liability in an amount of $1,000,000 aggregate single limit coverage (subject to increase), and maintain other insurance required by law or you lease.  If you do not already carry acceptable coverage, initial premiums for the required commercial general liability insurance and auto insurance are estimated to be within the ranges above per year.   [top]
 8 This amount includes the following for Type A:

  • Utility Deposit
$      0 - $1,500
  • Pre-Opening Payroll 
$3,000 - $3,500
$3,000 - $5,000
 9 This amount includes for the following Type A:

  • Grand Opening Advertising
$2,000 - $4,000
  • Local Advertising
$   500 - $1,000
  • Printing
$   500  -$1,000
$3,000 - $6,000
  [top]
 10 This amount includes for the following Type A:

  • Office Supplies
$2,500 - $8,000
  • Service Fees
$3,000 - $7,000*
$5,500 - $15,000

* typical service fees are for pest control, grease trap cleaning, window cleaning, floor waxing, etc.  [top]
 11 Legal and accounting fees to establish your initial corporation and mandatory filing range from $1,000 to $3,000.  [top]


WALLY'S FRANCHISE GROUP, INC.
4347 Portage Street, NW • Suite 102 • North Canton, OH 44720
Phone: 330-244-9058
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