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Want an L & L Hawaiian Franchise? Here’s Your Cost Breakdown
Are you thinking of buying an L & L Hawaiian franchise? If your franchising costs research led you here, then you’ve landed on the right article! Investing money on a franchise always needs a double to triple check. Fear not. Let’s list down all the L & L Hawaiian franchise cost and more.
L & L Hawaiian Franchise: The Details
It’s essential to have a bit of the background of the franchisor. Before we move on to the L & L Hawaiian franchise cost breakdown, let’s polish our knowledge of this Hawaiian-themed chain restaurant.
L & L Franchise Incorporated consists of brands with a quick service type of restaurant concept. Although coined as a quick-service type of restaurant, L & L prides themselves with an almost home-cooked process to their meals. “It’s great food, not fast food,” as they say.
The business began in 1976 and had been franchising since 1991. Currently, L & L Franchise has more than 200+ units. If you’re planning to franchise L & L, the franchisees operate under the trade name are the following (all starting with L & L):
- Drive-Inn
- Hawaiian Barbecue
- Hawaiian Grill
- Or, Hawaiian Mixplate
Training Program
L & L, the franchisor, provides an initial training program to the manager or franchisees. Attendance in the program is compulsory. It is also expected from the franchisees to attend training until their skills meet the franchisor’s satisfaction. The program consists of up to four weeks of classroom instruction.
After that, on-the-job training will commence at the franchisor’s corporate office in Honolulu, Hawaii, or wherever the franchisor designates the franchisee. If either party deems additional training is required, a request or recommendation is possible.
Franchise Territory:
A franchisee does not obtain exclusive or protected territory. The franchisee should anticipate that they may face competition from a fellow franchisee, from outlets of the franchisor itself, or other competitive brands that the franchisor owns. Furthermore, the Franchise Agreement will state that franchisees are only permitted to operate the franchise system within the approved location.
What’s Expected from a Would-be Franchisee?
- If the franchisee is a sole proprietor, the franchisor does not require the L & L franchise’s presence in supervision.
- If the franchisee is a corporation’s controlling stockholder, managing principal of an LLC, or a partnership’s managing partner, it’s best to be the fully-trained operator.
- The franchise system requires to be directly supervised by a manager who’s completed the training program.
- The location must have approval before the operation of the L & L franchise system restaurant. The franchisee must limit any franchise operations to the agreed location.
- L & L franchise system restaurants must be open and in regular operation. Franchisees must refrain from using the location for any other purpose or activity at any time. If the franchisee must use the franchise location for other purposes, the franchisee must obtain written consent from the franchisor.
- The operation of the franchise must be within strict conformity regarding methods, standards, and specifications that the franchisor requires. May it be in manual operations or writing.
The Terms
The initial length for the franchise is ten years. If franchisees are within good standing, it’s possible to renew for one successive period of 10 years, using the Franchise Agreement’s then-current version.
Is there Financial Assistance Available?
Unfortunately, franchisors will not guarantee a franchisor’s note, lease, or other obligations. Furthermore, financial assistance is only possible on special to rare occasions depending on the franchisor’s sole exclusive discretion. On some occasions, the franchisor allowed franchisees to pay for the initial franchise fee in installments.
Did you know?
Before we proceed to the L & L Hawaiian franchise cost, let’s go over some fun facts.
- L & L stands for Lee & Lee, the founding owners of the business.
- It’s the largest Hawaiian inspired restaurant chain in the world.
- It’s also one of the largest chains serving Asian cuisine.
- If you stacked 13,800 Spam musubi sold by L & L Hawaiian Barbeque daily, it would be taller than 3 Empire State Buildings.
- L & L cooks at least 2.8 million cups of rice a month. The amount could overflow an Olympic-sized swimming pool!
Your Investment Breakdown
Now, let’s go over the total estimated breakdown of an L & L Hawaiian franchise cost. The information below is a compilation from the 2020 FDD of the L & L Hawaiian Barbecue.
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Construction Cost | $26,300 | $300,000 |
| Equipment, Furniture, and Exterior | $41,500 | $100,000 |
| Inventory | $4,500 | $8,000 |
| Rent (under leasing arrangement per 1 month) | $3,000 | $20,000 |
| Security Deposit (under leasing) | $3,000 | $10,000 |
| Uniforms | $200 | $200 |
| Insurance Costs and Deposits (including Workmen’s Compensation) | $6,500 | $22,800 |
| Utility Deposits | $0 | $1,500 |
| Professional Fees | $0 | $5,000 |
| Travel and Living Expenses During Training (per person) | $3,700 | $7,500 |
| Additional Funds (for 3 months) | $15,000 | $30,000 |
| ESTIMATED TOTAL | $133,700 | $535,000 |
Other Fees
Aside from the initial franchising cost expenses such as lease, renovation fees, there are additional potential fees a would-be franchisee should be aware of.
| Type of Fee | Amount |
|---|---|
| Continuing Franchise Fee | 3% of net sales during initial 10 years of franchise term. |
| Advertising, Marketing and Promotion, and Convention Contributions | 1% of net sales. |
| Transfer | $7,500 transfer fee and franchisor’s training expenses. |
| Additional Training | $3,000 for non-sale management transfer. |
| Audit | Cost of audit plus interest (estimated range of costs: $2,000 to $5,000). |
| Liquidated Damages | $10,000 per month and 6% of net sales. |
| Insufficient Funds | At least $50. |
| Bookkeeping / Payroll Services | $0 to $500. |
| Software Maintenance | Varies. |
| Hosting Fees, Anti-Virus Services, Online Ordering and Additional Services | Varies. |
| Payment Card Industry Data Security Standards Compliance (PCI-DSS) and Managed Firewall Service | Varies. |
| Business Class High Speed Internet Access | Varies. |
| Upgrade, Refurbish and Replace | $4,000 to $30,000. |
| Additional Funds, Working Capital, and Miscellaneous Expenses – 3 months | $10,000 to $20,000. |
| Design Review Fee | $5,000 |
After listing down the additional fees, these sum up the overall estimated expenses a potential franchisee should know. Now, we’re done listing down all the L & L Hawaiian franchise costs. For more franchising information, visit FranchiseHow and expand your business ventures.