Section 02 Rev. 2026-08-15

Equipment, furniture, and packages

How to compare Item 7 equipment estimates when filings bundle different hardware, smallwares, furniture, freight, and installation.

An equipment row is not a universal basket. One filing may disclose “furniture, fixtures and equipment” as a single range. Another may separate restaurant equipment, smallwares, furniture, technology, signage, and installation. A third may use “restaurant package” for a mixture that cannot be reconstructed from the public table. Comparing the row totals without comparing their scope creates false precision.

Trace the package boundary

Read the Item 7 label and its footnote together. Ask whether the estimate includes cooking and holding equipment, refrigeration, warewashing, prep tables, shelving, sinks, water treatment, beverage systems, millwork, customer furniture, office equipment, utensils, freight, tax, installation, startup, and warranty. Then identify which of those costs appear elsewhere in the same table. A separate technology line may contain the POS hardware but not network cabling. A construction line may include equipment connections but not the equipment. “Small wares” may mean the opening utensil set, while replacement smallwares become an operating expense.

Do not split a package just to make a chart look comparable. Minnesota’s public Shah’s Halal filing uses a fixture-package line, while the filed Great Greek table combines equipment, furniture, supplies, and fixtures. The honest comparison is that the bundles differ; a made-up allocation would not improve it.

Black-and-white view of four chefs working behind a stainless service counter with drawers and hanging cookware
A Union Station restaurant kitchen in 1943 makes the package boundary visible: work surface, storage, cookware, production positions, and service flow operate as one line even when a filing prices them separately. Photograph by Jack Delano, Farm Security Administration/Library of Congress; public domain.

Purchase price is not installed cost

A quoted appliance can require freight, rigging, assembly, curb or stand hardware, electrical disconnects, plumbing, gas regulation, ventilation, commissioning, and inspection. Those costs may land in construction, equipment, or both depending on the filing. Delivery timing also matters: a low equipment quote is not useful if a long-lead item delays opening and extends pre-opening rent and payroll.

Utility consumption belongs in the decision even though it is not part of the purchase price. The U.S. Environmental Protection Agency’s ENERGY STAR commercial food-service directory covers categories including refrigeration, ice machines, dishwashers, ovens, griddles, fryers, holding cabinets, and cooktops. It also offers product and rebate tools. Certification does not answer capacity, menu, ventilation, or service-network questions, but it makes lifetime energy and water cost visible next to the acquisition cost.

Questions for a usable estimate

Confirm whether the package is mandatory, whether used equipment is permitted, who approves substitutions, who owns leased systems, and what happens when a model is discontinued. Ask recent franchisees what they actually paid for freight, installation, and opening replacements. The FTC’s FDD review guidance specifically recommends discussing total investment and required purchases with current operators.

Item 7 provides the disclosed opening estimate. A project budget needs a location-specific equipment matrix that reconciles each required function to its quote, installation scope, utility demand, lead time, and first-year maintenance burden—without assuming that another filing’s package contains the same things.