The following chart summarizes the major costs for opening a Smitty’sTM Restaurant.

THESE COSTS ARE ESTIMATES ONLY.

Typical Range of Cost for a Smitty’sTM Restaurant and Lounge*

*(These figures are estimates, based on our experience) 

Franchise Fee $35,000 For a 20-Year Franchise Agreement (GST/HST Extra)

Royalty 5% of gross sales (not including liquor sales)

Advertising 3% of sales (not currently collected)

New Restaurant

Opening Inventory $20,000

Training Costs $10,000 to $30,000

Lease Deposits $10,000 to $30,000

Equipment $120,000 to $140,000

Furniture and Fixtures $50,000 to $70,000

Leasehold Improvements $400,000 - $500,000
Less any landlord inducement allowances

The cost of premises (leasing costs if the facilities are leased and land and building costs if the facilities are owned) cannot be estimated, as they will vary, from case to case, depending on the particular circumstances.

Conversion Cost of Existing Restaurant

Opening Inventory $20,000

Training Costs $10,000 to $30,000

Equipment $10,000 to $100,000

Furniture and Fixtures $10,000 to $50,000

Leasehold Improvements $10,000 to $100,000

The conversion cost may have significant variations depending on the condition and type of equipment and leasehold improvements.