An estimated initial investment range is provided below that specifies the different fees required to obtain a license and operate an Old Chicago restaurant. Amounts may vary depending on restaurant location and other factors. We are currently seeking experienced multi-unit operators who have a $5 million net worth with liquidity of at least $900,000. Verification of a candidate's financial position is required prior to approval by Old Chicago.
Area development Fees and Store Franchise Fees
A Territory Area Development Fee is calculated by measuring the store holding capacity of a territory, usually a DMA, and multiplying that number by $15,000. Each time a specific store site is approved for development by us, we will prepare a franchise agreement for that location. A $40,000 Franchise Fee becomes due and payable when the Franchise Agreement is signed. This fee covers costs related to the franchise system organization, franchise selection, all training and support through the store's opening.
Royalty Fee
The continuing Royalty Fee is 4.0% of gross sales.
Marketing Requirements
Each location contributes 1.0% of gross sales to the Franchise Marketing Fund, and up to 2.0% of gross sales to support local restaurant marketing.
Initial Development Fee |
$55,000 |
$55,000 |
Development Fee for First Restaurant |
$0 |
$15,000 |
Initial Franchise Fee for First Restaurant |
$0 |
$40,000 |
Leasehold Improvements |
$350,000 |
$600,000 |
Architectual and Engineering Fees |
$35,000 |
$60,000 |
Furniture, Fixtures, and Equipment |
$210,000 |
$230,000 |
Kitchen Equipment |
$300,000 |
$350,000 |
POS and Computer Equipment |
$40,000 |
$50,000 |
Signs |
$20,000 |
$40,000 |
Restaurant Lease Payments - 3 Months |
$27,000 |
$42,000 |
Insurance - 3 Months |
$9,000 |
$15,000 |
Opening Inventory |
$25,000 |
$35,000 |
Security and Utilities Deposits / Licenses |
$8,000 |
$15,000 |
Liquor License Costs |
$15,000 |
$100,000 |
Opening Promotional Expenses |
$12,000 |
$12,000 |
MITP Training Costs |
$45,000 |
$55,000 |
NRO Team Expenses |
$50,000 |
$65,000 |
Employee Salaries - 3 Months and Other Prep-Opening Costs |
$70,000 |
$90,000 |
Additional Funds / Working Capital |
$60,000 |
$80,000 |
