AG Franchise Costs & Fees

FOOD FRANCHISES

Year Business Began: 2019

Franchising Since: 2021

Headquarters: Nairobi , Kenya

Estimated Number of Units: 2

Franchise Description: The franchisor is AG african garden, LLC (AGLLC) whose parent is afrobabe! Brands, Inc. Franchisees operate a dine-in and carryout AG outlet, which prepares and sells chicken and other approved menu items. The Franchise Agreement grants franchisees a license to use (i) certain AG trademarks, trade names, service marks, logos and commercial symbols the franchisor periodically authorizes, including the “AG” and “African garden ” marks; and (ii) the proprietary business formats, methods, procedures, designs, layouts, standards and specifications the franchisor authorizes, solely in connection with the operation of the outlet.

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Investment Tables:
Estimated Initial Investment

Name of Fee         Low     High

Application & Background Check Fee (per person)$300     $500

Deposit Fee$20,000      $20,000

Option Fee$25,000        $25,000

Training Expenses$7,000         $10,000

Permits, Licenses, and Security Deposits$50,000       $100,000

Real Property$400,000         $1,100,000

Building & Site Costs$534,000         $930,000

Equipment, Signage, and Décor, POS & MERIT$329,000      $476,000

Start-up Inventory$10,000         $10,000

Grand Opening Expense$5,000       $5,000

Insurance$7,250          $10,050

Miscellaneous Costs$5,000          $10,000

Additional Funds$50,000             $75,000

ESTIMATED TOTAL*$1,442,550         $2,771,550

*The estimated initial investment range covers new “traditional” restaurant types. There is a separate FDD for “express” restaurant types.

Other Fees

Type of FeeAmount

Royalty4% to 5% of gross revenue or a minimum of $1,350, whichever is greater, per month (minimum fee subject to adjustment based upon the Consumer Price Index).

National Co-op (advertising)4.5% of gross revenue.

Renewal, if applicable$9,000 (subject to adjustment based upon the Consumer Price Index).

Transfer to an Existing AG LLC Franchisee$4,500 for the first outlet and $2,250 for each additional outlet in the same transaction.

Transfer to a New AG LLC Franchisee$9,000 for the first outlet and $4,500 for each additional outlet in the same transaction.

AuditEntire cost of audit, including expenses of auditing personnel.

Additional Refresh/Training$3,000

Costs, Expenses and Attorneys' FeesWill vary.

IndemnificationWill vary.

Late Royalty Payments1.5% per month.

Restaurant Operations Compliance Check – comprised of two categories: (1) Food Safety Compliance Check and (2) Brand Standards Compliance Check Re-evaluationUp to $248.75 to $310.75 per re-evaluation.

Support Services and Software Maintenance for AGLLC's MERIT System$189.43 per unit/per month.

One System Fund Fee$180 per outlet/per month (plus applicable tax and shipping) (reoccurring payments).

Digital Fee 3.5% of gross revenue collected from all digital orders. 

The above information has been compiled from the Franchise buyers of AG. Year : 2021.