Great American Cookies Franchise Costs, Fees & Owner Salary (2023)

Initial Franchise Fee ($25,000)

‍The Initial Franchise Fee is $25,000. This fee is fully earned by the franchisor when paid and is non-refundable.

Royalty (6% of total net sales)

‍Franchisees are required to pay a weekly royalty of 6% of Net Sales. Net sales include all gross sales from the franchise location, less sales tax and use tax.

Advertising (4% of Net Sales)

‍Franchisees must make a weekly contribution to a national advertising fund. This contribution is in addition to the 2% of total net sales which franchisees must spend on local advertising. The franchisor reserves the right to increase the amount of the fund contribution up to 4% of net sales.

In addition to contributing to the national advertising fund, franchisees must also spend 2% of net sales during each calendar quarter on local advertising and promotion of their restaurant.

Great American Cookies offers franchise opportunities for individuals to establish and operate retail restaurants selling cookies, brownies, and related food items and beverages under the "GREAT AMERICAN COOKIES" mark. Depending on the type of restaurant and its location, the investment varies:

1. Traditional Restaurant: Estimated initial investment ranges from $282,500 to $412,150.
2. Non-Traditional Restaurant: Estimated initial investment ranges from $195,800 to $337,150.
3. Satellite: Estimated initial investment ranges from $110,350 to $211,811.
4. GREAT AMERICAN COOKIES-MARBLE SLAB CREAMERY Co-brand Restaurant: Estimated initial investment ranges from $385,185 to $512,135.

For each of these franchise opportunities, there are specific fees that must be paid to the franchisor or its affiliates, which can range from $25,000 to $50,000.

The following tables show the complete breakdown:

Initial Investment for a Traditional Restaurant

To ensure franchisees are well-prepared for success, Great American Cookies has developed a comprehensive training program. This program is designed to provide franchisees with the knowledge and skills necessary to operate their restaurant in alignment with the brand's standards.

Key aspects of the training program include:

• Operational Techniques: Franchisees are trained in the best practices for running their restaurant efficiently.
• Equipment Training: The program covers the use of all required equipment, ensuring franchisees know how to use and maintain their tools effectively.
• Computer Training: Franchisees receive training on the necessary computer hardware and software, ensuring they can manage orders, inventory, and other essential tasks digitally.
• In-Restaurant Training: Beyond theoretical knowledge, the training includes hands-on sessions in a restaurant setting.
• Employee Training: Franchisees are guided on how to train their employees, ensuring the entire team meets the brand's standards.
• Ongoing Training: Great American Cookies offers continuous operational training programs to keep franchisees updated with the latest standards and practices.

Franchisees of Great American Cookies do not receive an exclusive territory. Under the Multi-Unit Restaurant Agreement, franchisees are granted the right to develop and operate a specified number of Restaurants in a designated Development Area. This can be on a "Non-exclusive" basis or a "Protected Rights" basis.

For those operating on a non-exclusive basis, there is no exclusivity granted, and the franchisor retains all rights, including the right to own, operate, and franchise other stores under the "GREAT AMERICAN COOKIES®" name or any other associated trademarks at any location.

The Development Area and the rights provided to the franchisee are non-exclusive, and the franchisor reserves the right to conduct any business activities, under any name, in any area, regardless of its proximity to the franchisee's location.

It's essential to be actively engaged in the store's operations. While franchisees are not required to personally supervise the store, there are specific requirements for management.

If a franchisee does not personally supervise the store, a manager, assistant manager, or shift leader who has successfully completed Great American Cookies' training program must directly oversee the store "on premises."

This manager is responsible for the day-to-day operation of the store, including the oversight of food product preparation and personnel supervision. The manager must also commit at least 40 hours per week to overseeing the store's operations.