Do you want to open an online food delivery business by buying Mr Delivery franchise? If YES, here is how much it cost to open Mr Delivery franchise successfully. If you are looking towards opening a Mr. Delivery Franchise, it will be nice for you to have a preview of what the company represents before going ahead to make enquiries about the total cost of opening the franchise in your location.

Mr. Delivery is a Florida limited liability company that was founded on October 27, 2011 and they began franchising in 2013, about 7 years ago. The company has her corporate head office at 3913 Medical Parkway, Suite 200, Austin, Texas 78756, USA.

As of the 2016 Franchise Disclosure Document, there are 24 franchised Mr. Delivery locations in the USA. Based on 2016 FDD data, Mr. Delivery has franchise locations in 17 states. The largest region is the Midwest with 10 franchise locations.

Mr. Delivery is an online ordering service for food delivery. Mr. Delivery provides pick up and delivery of restaurant orders to customers. Orders are placed online through desktop and mobile devices. It also provides courier services beyond restaurant delivery. Here are areas where you are expected to spend money and the cost associated with it;

Financial Investment Required to Open Mr Delivery Franchise

1. Initial Investment Range: $67,200 to $68,700

2. Franchise Fee: $50,000

3. Royalty Fee: 6 percent of Gross Sales

And the Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.

Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.

  1. Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution: At least 1 percent per calendar year and the Due Date: for this is Monthly.

Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two-thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.

Centers owned by Mr. Delivery and its affiliates are also members of their respective local Cooperative and each company-owned Center has the same voting rights as the franchised locations within the Cooperative.

If the company-owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.

  1. Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
  2. Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
  3. Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.

Please note that you must reimburse Mr. Delivery if it is held liable for claims arising out of your franchise operations.

  1. Insurance: Reimbursement of costs the franchisor’s out-of-pocket costs.
  2. Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date:  Due on receipt of invoice.)

Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.

  1. POS Hardware and Software: Depends upon vendor and products purchased. (Due Date:  Depends upon vendor and products purchased.)
  2. Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date:  As incurred.)

Payable to Mr. Delivery if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Mr. Delivery is required to defend your unsuccessful claim against it.

  1. Veteran Incentives: This is open for negotiation with the company.
  2. Term of Agreement and Renewal: The length of the initial franchise term is 5 years. If requirements are met, franchisees can renew for one additional term of 5 years.
  3. Financial Assistance: Mr. Delivery has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll et al.

In Summary,

  • Initial Franchise Fee: $50,000
  • Total Investment: $67,200 to $68,700
  • Working Capital: $10,000