How Much Does Dave and Buster’s Franchise Cost
A restaurant can be a good way to earn money. It is probably one of the most popular types of businesses in the world. It’s because of its popularity that almost every corner in your country has a restaurant. This is the time where you need to find a business that stands out from the rest. And that is where Dave and Buster’s come in. This restaurant doesn’t just serve food and drinks; they also offer entertainment to their customers such as video arcades and much more. Interested in franchising one? Then you should first know how much does Dave and Buster’s franchise cost?
Average Dave and Buster’s Franchise Startup Fee
The restaurant industry has greatly changed after Dave and Buster’s restaurant opened. This restaurant started in Dallas, Texas. Because of its uniqueness, it became an instant hit, making it famous all over the country.
Dave and Buster’s restaurant and amusement center open from mid-morning up to late night. This restaurant serves a wide variety of delicious and world-class food such as pasta, steaks, seafood, chicken, burgers, and much more. They also update their menus to completely satisfy their customers.
So what is special with this restaurant? As what we’ve mentioned above, they offer something unique. Their restaurant has a section for amusement purposes. This amusement section includes entertainments such as pocket billiards, darts, game boards, and much more indoor games. Dave and Buster’s also have a particular room where paintings, toy collection, and much more are shown. If a customer wants to celebrate special occasions such as anniversaries, birthdays, and others, this restaurant can provide a room for them. Dave and Busters don’t just offer traditional games; they also offer modern electronic video games. A customer who wants to play an electronic game will need a power card. Every person will surely enjoy eating and playing in Dave and Buster’s.
As of February 27, 2017, Dave and Buster’s restaurant and amusement center currently, have 94 stores in 33 states in the United States and Canada.
Dave and Buster’s franchise cost usually runs around $1,117,000 up to $2,024,500. And there are a lot of factors that could affect it. It is not surprising since this business requires a lot of equipment and fixtures. To plan your business, here is the breakdown of the total cost:
- Initial Fee – This is the first expense you will have to make. Dave and Buster’s franchise startup fee is $40,000 no more, no less. After you pay the initial fee, you will need to consider the other factors.
- Leasehold Upgrades – This is the biggest expense you will probably make. Leasehold upgrades include improvements to the building. Since Dave and Buster’s offers a lot of amusement, you will need a bigger establishment. On the lower end, expect to spend around $500,000. On the other hand, $1,000,000 will be spent on the higher end.
- Training – Before the company allows you to run the business, you and your employees will have to complete the training course. Usually, you will be trained at a certified training location selected by the company. The training normally includes 11 hours of classroom instruction and 280 hours of on-the-job training. A franchisee will be required a minimum of four shifts while the director of operations will be required a minimum of 20 shifts and on the other hand, management staff will be required a minimum of 35 shifts.
The cost for training usually runs around $15,000 up to $40,000 and it includes travel, food, and lodging expenses for you and your staffs.
- Compensation of Expenses – $40,000 on the lower end and $60,000 on the higher end.
- Equipment, Fixtures, and Decoration – Another big factor that can affect your total Dave and Buster’s franchise cost. The bigger your Dave and Buster’s restaurant is; the more equipment you will need. Expect to spend around $410,000 up to $480,000 for this factor.
- Architectural Fees – This is only applicable if you hire a professional architect to design the building for you, which is necessary unless you are an architect or engineer yourself. Expect to spend around $20,000 on the lower end and $60,000 on the higher end.
- Signs – $28,000 on the lower end and $59,000 on the higher end.
- Liquor License – Since your restaurant will be serving alcoholic drinks and beverages, you will be required to have a liquor license. The cost for this one usually runs around $5,000 up to $50,000.
- Operational Cost – Since you will not be earning much money for the first 3 months of your restaurant’s operation, you will be required to prepare a fund equivalent for 3 months. The cost would run around $99,000 on the lower end and $170,000 on the higher end. This includes the 3-month rental of your restaurant, salaries of your employees equivalent to 3-month, and other miscellaneous expenses.
Now that you have an idea about the Dave and Buster’s franchise startup fee, you should know the cost that you will make during its operation. As long as your business operates, you will have to pay the company 3 percent up to 5 percent of your monthly profits for the monthly royalty fee. Local advertising can cost you around 1.1 percent of your quarterly incomes or a minimum of 1.5 percent of your yearly profits.
As of now, you can only locate your Dave and Buster’s restaurant within the cities in the United States and Canada. The requirements for the site are:
- Should have at least 26,500 square feet up to 40,000 square feet.
- Should have a daytime population of around 700,000 up to 1,000,000 within a 10-mile radius.
- Should have at least 300 up to 400 parking spaces.
- It should have a two-level storefront height.
If you are new to the business industry, a franchise business is a good way to start. Why? Because when you franchise a business, the company or the franchisor will help you on how to make your business successful since it’s their name that you are carrying. However, you will still need to do your part too. If you don’t know how Forbes provides tips to make your franchise successful.