Johnny and sound system) B) bar accessories $30,000

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Johnny White
per. 2
opening a chilis franchise
1.Have you ever been at a restaurant and thought to yourself, how do I do start
my own Chilis restaurant? If I have does that make me weird? Opening a restaurant
has been something I have wanted to do for a while now.

2.Qualifications for Chilis
A)three steps
1. 5yrs. experience with a multi-unit restaurant owner
2. personal/business liquidity of $500,000 per restaurant
3. personal/ business net worth of at least $5 million
B)initial franchise fee $ 40,000
3.Land / Location
A)1. lease monthly $4,000 (Richmond)
2. buy 10 years contract $300,000
B)Average price $3,000 – 12,000 monthly
1. approx. 5532 sq. feet
2. 217 seats
3. 146 dining area seats
4. 71 seats in the bar area
A)pre-construction $40,000 – 200,000 (architectural and related drawings,
engineering, testing, and permits)
B)construction cost $650,000 – 1,100,000 (foundation, slob, materials,
hardware, roof, plumbing, electrical, HVAC equipment, and labor)
C)site work $95,000 – 300,000 (paving, parking lot, sidewalks, curbs,
installation of outdoor lighting)
D)exterior signage $12,000 – 40,000 (2 min. signs)
6.Furniture / fixtures $75,000 – 90,000
(requires you to the table, chairs, and benches that meet their specifications)
7.Kitchen / bar equipment $300,000 – 350,000
(kitchen and bar equipment, bar millwork, ventilation, refrigeration
equipment, and sound system)
B) bar accessories $30,000 – 35,000
8.Opening Advertising $8,000 – 10,000
(local broadcast media, advertisements in local newspaper, direct mail, and
9.Initial Training
A)the cost of training for 1st time employees $40,000 – 50,000
10.Working Capitol – is comprised of an estimated range of $12,000 to 22,000
11.Inventory $15,000 – 20,000
A) range given will be needed to cover your inventory needs for the 1st
month of operation.

12.Liquor license $10,000 – 400,000
vary significantly – Local requirements
13.System Installation $30,000 – 40,000
A) computerized accounting, and security system
14.Additional funds $450,000 – 600,000
A) 1st three months lease payments, 1st three months inventory, payroll,
utilities, insurance, security, repairs, maintenance, builders risk insurance.

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15.Effective factors
A)management and skill
C)local economic conditions
D)local market for the restaurant
E)prevailing wage rate
F)competition in market place
16.Total cost to start a Chilis restaurant $1,800,000 – 2,909,000
interviewed Chilis manager
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Categories: Accounting


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