Bella Bridesmaids Franchise Costs $93K – $252K (+ 2024 Profits)
Bella Bridesmaids was established in 2000 by Bridget Brown to offer stylish and modern dresses for bridesmaids. The brand began franchising in 2006 to grow its presence across the United States. Each store provides a unique shopping experience, focusing on high-quality bridesmaid dresses that meet individual preferences and wedding styles.
The company’s main office is in Chicago, Illinois, and it has become well-known across the country. Bella Bridesmaids has a welcoming and upscale environment with attentive service, appealing to customers looking for special and tailored shopping for bridesmaid dresses.
This approach has helped Bella Bridesmaids become a big name in the bridal industry, attracting business owners interested in the wedding market. The franchise model also offers strong branding and support to help each franchisee succeed in their local area.
Initial investment
Here’s what you can expect to spend to start a Bella Bridesmaid franchise.
Type of Expenditure | Amount |
---|---|
Initial Franchise Fee | $50,000 |
Initial Lease Payments | $1,800 – $30,000 |
Initial Inventory and Supplies | $10,000 – $30,000 |
Equipment and Fixtures | $2,000 – $10,000 |
Leasehold Improvements and Construction | $2,000 – $50,000 |
Utility Deposits, Business Permits | $100 – $500 |
Costs to Attend Training | $1,300 – $3,500 |
Insurance | $1,500 – $5,000 |
Exterior Signs | $200 – $10,000 |
Computer System | $1,000 – $5,000 |
Professional Fees | $1,000 – $8,000 |
Opening Advertising & Promotional Costs | $2,000 – $10,000 |
Additional Funds (first three months) | $20,000 – $40,000 |
Total | $93,000 – $252,000 |
Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.
Franchise fees & Royalties
Here are the main ongoing fees the franchisor will ask you to pay going forward to run the franchise.
Initial Franchise Fee
To open the first Bella Bridesmaids franchise, a franchisee must pay an initial franchise fee of $50,000 on the date the Franchise Agreement is signed. This fee is fully earned upon payment and is nonrefundable. For subsequent franchises within a protected Territory, the fee is $10,000, and for those outside the protected Territory, it is 75% of the then-current initial franchise fee.
Royalty Fee
Franchisees must pay a royalty fee, which is the greater of 4% of gross monthly revenue or $600, payable monthly. This fee is due on or before the 10th day of each month and is paid via electronic funds transfer. A $100 late payment fee applies for each delinquent royalty payment.
Local Advertising
A minimum of 1% of annual Gross Revenues must be spent monthly on advertising; any shortfall by the end of the year must also be paid.
Systemwide Marketing Fund
Contributions are based on the previous year’s sales with amounts specified as follows: for sales from $0 to $300,000, the annual fee is $1,000; for sales between $300,000 and $400,000, the fee is $1,500; for sales between $400,000 and $600,000, the fee is $2,000; and for sales greater than $600,000, the fee is one half of one percent (0.5%) of the monthly gross revenue reported. These contributions are payable in 12 equal monthly increments.
Technology Fee
A monthly technology fee of at least $125 is due, which may increase with the addition of future technologies. This fee covers costs associated with various technological services provided by the franchisor.
Software License Fees
Franchisees must pay for software licenses, such as QuickBooks and Squarespace scheduling. These fees are set by the vendors and may change over time. The current monthly fees are $38.50 for QuickBooks (first year), $55.00, and $25.00 for Squarespace.
Additional Training and Operational Assistance
After the first year of operation, franchisees may be charged $150 per hour for additional training or operational assistance that exceeds four hours per month. This is in addition to the costs for initial training provided by the franchisor.
Transfer
If a franchisee wishes to transfer their franchise, a fee of $10,000 is required.
Renewal Fees
For franchise renewal, the current fee is $6,000, payable concurrently with the notice of intent to renew.
How to apply
Opening a Bella Bridesmaid franchise involves several steps designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Bella Bridesmaid franchise.
1. Research and Evaluate the Franchise
- Investigate the market presence and reputation of Bella Bridesmaids.
- Understand the unique value proposition of the franchise, focusing on its specialty in bridesmaid dresses.
- Assess local demand for bridal wear and competitors in your area.
2. Review the Franchise Disclosure Document (FDD)
- Obtain and carefully read the FDD provided by Bella Bridesmaids.
- Pay close attention to investment costs, franchise fees, royalty fees, and any ongoing operational costs.
- Note the legal obligations and the rights provided to you as a franchisee.
3. Secure Financing
- Evaluate your financial resources to ensure you can cover the initial franchise fee and startup costs.
- Explore financing options such as loans, investor funding, or personal savings.
- Develop a detailed business plan to aid in securing loans or investor support.
4. Choose a Suitable Location
- Identify potential locations based on market research and demographics that align with Bella Bridesmaids’ target clientele.
- Consider factors such as visibility, accessibility, and proximity to complementary businesses like bridal shops and event planners.
- Negotiate lease terms if renting a space or evaluate purchasing options.
5. Complete Franchise Application and Approval Process
- Fill out the Bella Bridesmaids franchise application thoroughly.
- Participate in interviews or discussions as required by the franchisor to assess your suitability.
- Await approval from Bella Bridesmaids, which may include background checks and financial assessments.
6. Attend Franchise Training
- Participate in any mandatory training programs provided by Bella Bridesmaids.
- Focus on learning the operational procedures, sales techniques, and product knowledge necessary to successfully run the franchise.
- Network with other franchisees and the franchisor to build relationships and gain insights.
7. Plan and Execute the Store Launch
- Prepare for the grand opening by planning marketing and promotional activities.
- Set up the store layout according to the franchisor’s guidelines to ensure brand consistency.
- Hire and train staff to provide excellent customer service and maintain the brand’s standards.
Disclaimer
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