Each Hartz restaurant is a multi-faceted food service operation or fully a buffet service operation. As such, specific design and functional criteria must be observed to deliver the high standards in food quality, value and convenenience Hartz guest have come to expect. Cost breakdown estimates for a Hartz Restaurant are described in the adjacent chart. The figures provided are estimates only. The actual investments varies by location depending upon such factors as geographic area land values and leasing arrangements.
1. Francise Fee
The franchise fee is uniform to each location and is payable at the time the franchise agreement is signed.
2. Real Estate and Improvements
Hartz believes most franchises will lease the real estate and improvements. The lease cost is estimated to be between 8% - 12% of the estimated sales monthly which is equally between RM80,000 - RM15,000.00 for an area of 3500sq. ft. restaurant. The adjacent chart does not include estimates for the purchase of land or building.
3.Equipment and Signs
A summary listing of equipment items and signs is included in the company's investment approval plan.
4. Initial Inventory
The initial inventory of ingredients, products, materials, supplies and paper goods is purchased prior to the opening and necessary for the first several days or months of operation.
The franchisee is required to conduct grand opening and promotional activities.
Insurance expenditures may range from a deposit to full payment of the annual premium. Premiums may vary considerably with each franchisee and the amount of coverage purchased.
7. Working Capital
Detailed breakdown of the working capital requirement is provided in the company's development plan.
It is the responsibility of the franchise owners to secure funding for the opening of each location. Hartz will cooperate with the franchise owner's financial institution as necessary in obtaining financing but does not provide direct financing arrangement.