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The Cost of A Dickey’s Barbecue Pit Franchise
When it comes to southern hospitality, barbeque is undoubtedly one of the things that’ll welcome guests of all ages. And when we’re talking about the best barbeque place in Dallas, Texas, Dickey’s Barbecue Pit is what everyone is raving about. Read more about the Dickey’s Barbecue Pit franchise.
Company Overview
Dickey’s Barbecue Pit started as a family business. The founder, Travis Dickey, had a knack for delicious slow-smoked meat. Founded in 1941, Dickey’s Barbecue Pit has been serving up hickory-smoked signature meats. To date, the company still does the same method by slow smoking the meats on-site for hungry diners.
The restaurant chain started offering franchise opportunities in 1994, under the franchisor Dickey’s Barbeque Restaurants, Inc. Presently, they offer four types of franchises: traditional restaurant, non-traditional restaurant, delivery-carryout restaurant, and ghost kitchen.
Franchise Training Details
Here are the training details for Dickey’s Barbecue Pit franchisees:
- The franchisee and two designated managers must attend and complete the initial training program not more than 60 days before the restaurant opening. Each participant must adhere to the requirements to be eligible for the initial training program.
- The training is held at Dickey’s training center or in another Dickey’s company-operated branch. The franchisor may also choose another location if necessary. All these locations are within Texas.
- The two designated managers must get certification after having completed the online training before operating the branch.
- The franchisor may also delegate a representative to supervise and offer assistance on-site during business operations. In addition, the duration will depend upon the franchisor’s discretion.
- The owner and its employees must adhere to complementary or remedial training programs as directed by the franchisor.
- The designated managers must complete additional courses yearly, completing 12 credit hours, with an hour per month for each course.
Franchise Territory:
Here are the Dickey’s Barbecue Pit franchise territory details:
- The franchisee may choose a location that must adhere to the Franchise Agreement (FA) regulations, which will undergo approval from the franchisor.
- The franchisor doesn’t permit any other franchisee to operate another Dickey’s Barbecue Pit within the chosen “Primary Area.” This area should be within a one-mile radius of the selected location.
- The franchisor also doesn’t grant exclusive territory.
Franchise Obligations and Conditions
Here are the franchise obligations and restrictions:
- The franchisee must delegate and retain one person to act as the operator or owner who must meet specific qualifications. This must be done upon signing the FA.
- The franchisees may only operate the chosen location for the sole purpose of running the restaurant. Moreover, they must be open during the business hours specified in the FA.
- The restaurant must never be used for any other purpose without consent from the franchisor.
Franchise Term and Renewal
The franchise term for all franchise types is 10 years, except for the traditional restaurant franchise, which is 20 years. If the franchisee remains in good standing, they can renew for another 10 years.
Financial Assistance
The franchisor may recommend third-party lenders to cover a percentage of the initial investment. However, the franchisor doesn’t offer indirect or direct financing nor guarantee a note, lease, or other obligations to the franchisee.
Did You Know?
Here are some fun facts about Dickey’s Barbecue Pit:
- The founder, Travis Dickey is was a WWI veteran.
- Dickey’s Barbecue Pit was a family-operated business with Travis grilling and Ms. Ollie Dickey making sandwiches.
- They were dubbed as the fastest-growing restaurant in the U.S. in 2012 by Technomic.
- Not to mention, they were behind the foundation that supports firefighters and law enforcement officers called Barbeque, Boots & Badges.
Your Investment:
Here’s the Dickey’s Barbecue Pit franchise cost:
| Name of Fee | Low | High |
|---|---|---|
| Architectural Plans | $750 | $15,000 |
| Permits | $350 | $20,000 |
| Leasehold Improvements | $3,000 | $205,000 |
| Furniture, Fixtures, and Equipment | $25,000 | $104,400 |
| Graphics | $0 | $8,000 |
| Digital Menu Boards | $0 | $3,000 |
| Signage | $0 | $8,000 |
| POS Computer and Technology in A Box | $5,000 | $7,000 |
| Tenant Improvements (potential landlord credit) | $0 | ($80,000) |
| Franchise Fee | $15,000 | $20,000 |
| Lease Deposits | $2,650 | $10,000 |
| Training | $1,750 | $2,900 |
| ServSafe Training | $0 | $185 |
| BU Enrollment Fee | $297 | $297 |
| Opening Inventory and Services | $4,000 | $7,000 |
| Additional Funds – 3 months | $5,000 | $15,000 |
| Insurance | $4,000 | $8,000 |
| Restaurant Opening Promotion | $5,000 | $8,000 |
| Professional Fees | $0 | $2,000 |
| Closing and Finance Costs | $0 | $15,000 |
| Smokestack Sales Reporting System Software Fee | $200 | $200 |
| Spark Online Ordering Fee | $596 | $596 |
| Spark POS SaaS Fee | $572 | $572 |
| Technology Support Fee | $1,328 | $3,139 |
| Epson Printer | $500 | $500 |
| Rent Abatement (6 months) | $0 | ($60,000) |
| ESTIMATED TOTAL | $71,993 | $323,789 |
Other Fees
| Type of Fee | Amount |
|---|---|
| Royalty | 5% of net sales. |
| Marketing Fund | 2 to 4% of net sales depending on location |
| Spark POS SaaS Fee | $149 per month. |
| Technology Support Fee | $251 and $304 per month. |
| Smokestack Sales Reporting System Software Fee | $58 per month for the first restaurant, $40 per month for each additional restaurant. Plus, additional $100 per year infrastructure support fee |
| Spark Online Ordering Fee/Mobile Unit Software | $157 per month. |
| Processing Fee for Spark | $0.01 per online order. |
| Spark POS-SaaS for Mobile Unit Franchise Only | $125 per month. |
| Spark POS – Maintenance/License Fee – Mobile Unit Franchise Only | $2.08 monthly or $25 per year. |
| Mobile Unit Franchise Hardware | $2,500. |
| Epson Printer | $500 |
| Insurance | Varies |
| Lease Payments | Varies |
| Unapproved Insurance Vendor Review Fees | $350 for costs of reviewing insurance coverages; additional $150 for each subsequent review |
| Training Instruction and Materials | $1,150 for each trainee; $1,750 for online and onsite training for up to 3 managers, which includes manager certification. |
| BUO Training Program Enrollment | $99 per month. |
| Audit | Audit cost plus interest. |
| Site Evaluation Fee and Costs | Reasonable costs and expenses plus a site evaluation fee of $1,000. |
| Product and Service Purchases | Varies. |
| Testing | Inspection and testing cost |
| Inspection | The inspection cost and correcting any deficiencies. |
| Replacement or Update of the Manuals or Other Forms | Replacement or update cost and delivery of manuals or other forms necessary for running the restaurant. |
| Transfer | Greater of $15,000 or the franchisor’s reasonable costs and expenses. |
| Renewal | $15,000 |
| Securities Offering Review | $1,000 or the franchisor’s costs incurred for review of offering materials, whichever is greater. |
| Management Fee | 5% of net sales, plus pass through costs and expenses. |
| Indemnification | Legal fees, costs and expenses. |
| Interest | 15% or maximum rate allowed by law |
| Late Fee | Legal fees, costs and expenses. |
| Insufficient Funds Processing Fee | $40 |
| Legal | Legal fees and expenses. |
| Termination | Liquidated damages equal to the present value of the royalty for the number of months remaining in the term of the FA. |
If you’re ready to start your Dickey’s Barbecue Pit franchise, visit their website for more details.
For other franchise information, check out Franchise How!