Johnny White
per. 2
opening a chili’s franchise
1.Have you ever been at a restaurant and thought to yourself, how do I do start
my own Chili’s 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 Chili’s
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.

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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.

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