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How Much Does A Red Robin Franchise Cost?
Consumers can’t say no to juicy, smokey, and flavorful burgers. The reason why burger joints are sprouting like mushrooms left and right. For restaurateurs, running a casual burger joint promises a lucrative return. If you’ve been looking to have a massive slice of the pie from this industry, franchising is your best bet. While many up-and-coming restaurateurs eye on burger chains, there is one that stands out as a gourmet burger chain in America. And that is Red Robin.
In this article, we’ll give you the lowdown on the Red Robin franchise cost. Read on to learn about Red Robin’s history, training procedures, franchisee obligations. Not to mention, some interesting facts that make Red Robin special.
Franchise Description
Red Robin is one of the most popular American chains of restaurants that offer mouthwatering gourmet burgers. But it hadn’t always started as a full-service restaurant. Red Robin was once a bar named “Sam’s Tavern,” opened in the 1940s.
Its location was on a campus in Seattle, Washington. Then, in 1969, Gerry Kingen took over the business and slowly added food items on the menu. It is under the trade name Red Robin Gourmet Burgers, Inc.
Since the takeover, Red Robin has become famous for its delectable gourmet burgers that consumers crave. They offer the most quality burgers in a casual and fun dining atmosphere that caters to both kids and adults. On top of gourmet burgers, Red Robin also has various food options such as:
- soups
- salads
- appetizers
- desserts
- entrees
- signature beverages
Moreover, Red Robin is still brewing up thirst-quenching beers and cocktails. Their beers include a selection of both local and regional beers in America. In fact, Red Robin earned the Best Beer Program in a Multi-Unit Chain Restaurant VIBE Vista Award.
Red Robin’s success as a gourmet burger chain is the reason why there are over 570 restaurants all over America. It wasn’t until in 1979 that the first Red Robin franchise was launched in Yakima, Washington. Out of the 570 restaurant chains, there are over 90 franchised Red Robin chains.
The franchisor, Red Robin International, Inc., grants franchisees the right to open more than one Red Robin restaurant. The initial Red Robin franchise cost is around $1,865,000 to $4,115,000. This includes the initial franchise fee of $35,000. Plus there’s also a working capital of up to $200,000, and a 5 percent royal fee. Read until the end to know the detailed Red Robin franchise cost.
Training Overview
The franchisee will have to undergo two types of training programs when franchising a Red Robin restaurant. The first one is the School of Management training program. This will involve training for the higher-ups such as the Operating Partner, general manager, assistant manager, and kitchen manager. The first training program also includes the Managing Principal, wherein he/she has to undergo the Managing Principal Training Program.
The second type of training that franchisees have to undertake is the School of Team Member Excellence. This is the training program for rank-and-file employees such as bartenders, servers, hosts, bussers, and cooks.
Finally, the franchisor will then hold a final training program before opening with a week-long duration. This is called the New Restaurant Opening Training program. However, all higher-ups must get approval from the franchisor that they have satisfactorily aced the School of Management training program.
Obligations and Restrictions
According to the Red Robin Franchise Agreement (FA), all franchisees must select the location, considered the “Protected Area.” This is then approved by the franchisor overseeing to factors such as commercial progress, population, and demographics.
Under the FA, the Operating Partner and Managing Principal must ensure that they supervise the Red Robin restaurant daily. Furthermore, if the franchise is an entity, the franchisee must identify at least one of their owners. This person should have the decision-making influence to act as the Managing Principal. Moreover, he must also have a 10 percent ownership interest. Not to mention, the franchisor calls the shots on what menu items and other products the franchisee must offer.
The initial franchise term is 20 years, starting from the contract signing date. Last but not least, the franchisor doesn’t offer options for financing, nor mortgages, promissory notes, or leases.
Red Robin Franchise Cost
Your Investment
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Real Estate | Variable | |
| Small wares & Supplies | $40,000 | $50,000 |
| Initial Inventory | $25,000 | $35,000 |
| Pre-Opening Expenses | $150,000 | $250,000 |
| Annual Insurance Premium for first year’s coverage | $50,000 | $75,000 |
| Liquor License | Variable | |
| Site Work | $75,000 | $500,000 |
| Pre-construction, Due Diligence, Design Costs, Permits | $0 | $400,000 |
| Building Construction Costs | $800,000 | $1,500,000 |
| Furniture, Fixtures, Décor Items and Equipment | $550,000 | $950,000 |
| Exterior Signage | $40,000 | $120,000 |
| Additional Funds – 3 months | $100,000 | $200,000 |
| ESTIMATED TOTAL | $1,865,000 | $4,115,000 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Royalty | 5% of Gross Sales. |
| Cooperative Advertising and Promotion Fund (CAP Fund) Account | 0.5%. Franchisees must contribute a percentage of the Gross Sales that the franchisor designates to the CAP Fund each Accounting Period. |
| National Advertising and Promotional Fund | 2%. Franchisees must contribute a percentage of the Gross Sales that the franchisor designates to the NAF each Accounting Period. |
| Local Advertising | 1.5%. Franchisees must spend a percentage of Gross Sales in each calendar quarter on approved local advertising activities. |
| Regional or Local Advertising Cooperative | Maximum of 1.5% of Gross Sales, credited against local advertising requirement. |
| Late Opening Fee | $35,000 |
| Insufficient Funds | $100 |
| Additional On-Site Evaluations | Variable |
| Refurbishment of Restaurant Premises | Variable |
| Approval of Alternative Supplier | Varies. It should not exceed the reasonable cost of the research and inspection and the actual cost of the test. |
| Audit | Amount of any delinquency in royalty and service fees and advertising contributions plus interest from the date due. Unless there’s an understatement of Gross Sales exceeds 2% in which case franchisees must also pay for the cost of the audit. |
| Information Security Audit | The actual cost of the audit. |
| Transfer | $5,000 multiplied by number of Restaurants remaining to be developed to transfer interest in Area Development Agreement. $10,000 to transfer interest in FA. |
| Relocation | $5,000 |
| Cost and Attorneys’ Fees | Varies |
| Indemnification | Varies |
| Interest | Lesser of 1.5% per month or the maximum rate allowed by applicable law. |
| Non-Solicitation Fee | 200% of the annual salary of the person recruited |
| Insurance | Cost of insurance. |
| Management Fee | 10% of Gross Sales plus costs and expenses. |
| Additional and On-Site Training | The current training fee. Plus, any travel and living expenses for the trainers the franchisor sends to the restaurant. |
| New Restaurant Opening Training | $45,000-$80,000 |
| Mystery Shopper/Customer Survey Fee | Varies. But the franchisor estimates the cost of each inspection will range from $100 to $500. |
| Damages | An amount equal to the value of the Royalty, CAP Fund contributions, NAF contributions, and Cooperative contributions. Those would have become due following termination of the FA for the period beginning on the date of termination and ending 3 years from the termination date. Unless, the scheduled expiration of the term of the FA expires earlier, in which case the period for calculating the damages will end on the date of expiration. |
Did You Know?
Red Robin is one of the best options for a franchise opportunity due to the company’s fascinating culture. Here are some fun facts about Red Robin:
- Mike and Steve Snyder, two regular Red Robin consumers, opened the first Red Robin franchise.
- Red Robin is one of the few casual dining restaurants that offer bottomless steak fries for over 20 years!
- In 2014, Red Robin smashed the record for offering the unhealthiest meal combo amounting to 3,540 calories! This included the “Monster” double burger, bottomless fries, and a milkshake.
- One of the commercials backfired, and Red Robin received a public backlash from vegetarians. The line in the commercial said, “We even have a garden burger just in case your teenage daughter is going through a phase.”
For more details on the Red Robin franchise information, visit their website here.
If you want more information about other franchises, you can find other resources here at Franchise How!
Are you gearing up for a new business in 2024? Forget the next big tech start-up -the latest trend in town might be a perfectly toasted baguette. Take Paris Banh Mi Cafe and Bakery, for instance. This Vietnamese sandwich shop is rapidly growing, with locations popping up from coast to coast, from California to Florida.
But what’s the secret behind their success? Explore why the Paris Banh Mi franchise has snowballed in the last two years and be inspired to start your own business .
About Paris Banh Mi
The French baguette was introduced in Vietnam in the mid-19th century when the country was still a part of French Indochina. In the 1950s, Saigon saw the birth of a unique Vietnamese sandwich, “bánh mì,” which quickly became a favorite food of a large part of the population.
The story of Paris Banh Mi started in Orlando, Florida, at 1021 E Colonial Drive in 2019. Hien Tran and Doan Nguyen, a married couple passionate about food, opened the first Paris Banh Mi location. Their concept was simple: bring the delicious flavors of Vietnamese banh mi sandwiches, traditionally baguettes filled with savory meats and pickled vegetables, to a broader audience.
The customers quickly fell in love with the fresh ingredients, bold flavors, and convenient fast-casual setting. Now, Paris Banh Mi Cafe and Bakery promises to bring their customers the best “Baguette Banh Mi” taste.
In just two years, the laid-back cafe and bakery in Florida multiplied into a chain of stores in the county. Today, Paris Banh Mi is serving customers in 46 locations all across the USA. The company plans to expand to 100+ locations by 2026.
Each Paris Banh Mi Cafe and Bakery has a clean and spacious dining area, fast service, friendly staff, and a selection of delicious food and pastries. Take a peek at some of their mouth-watering baguette sandwiches filled with authentic Vietnamese ingredients.
Source: Paris Banh Mi website
For those craving something sweet, the bakery indulges you with a variety of French pastries. Check out their sandwiches, pastries, and beverages on the Paris Banh Mi Cafe and Bakery menu page.
Source: Paris Banh Mi website
Why Own a Paris Banh Mi Franchise
Paris Banh Mi is a franchised quick-service restaurant offering exciting opportunities for aspiring business owners. Many nail salon owners and aspiring entrepreneurs are switching to buying a Paris Banh Mi franchise. The main reasons why they love Paris are:
- It opens a great opportunity and is more profitable.
- Seamless franchising process and fewer things to worry about
- Required low capital to open
- Higher end-of-year profits
The benefits extend beyond operational efficiency. Paris Banh Mi boasts a surprisingly low-cost entry point compared to other franchises.
The initial franchise fee is manageable at $60,000. The total investment for opening a Paris Banh Mi can range from $200,000 to $500,000. This amount reflects the option to acquire a pre-existing, equipped location (second generation) for a lower investment cost or a complete build-out from scratch option.
Regardless of the chosen route, the investment is significantly lower than that of building a business from the ground up, making Paris Banh Mi an attractive option for many entrepreneurs.
Licensing Information
Owning a Paris Banh Mi franchise is not just about delicious food! The company is looking for dedicated individuals who can run their restaurant full-time. They will provide a multi-day training program for new franchisees. In addition, Paris Banh Mi offers ongoing support for franchisees, guiding them to make informed decisions and thrive in this exciting industry.
You’re a good fit for a Paris Banh Mi Cafe Bakery franchise if you are:
- Passionate about food, especially fresh baguettes and pastries
- A self-starter with a proven track record in business
- Financially responsible with a focus on results
- Ready to fully commit to building the Paris Banh Mi brand
If you have what it takes, don’t hesitate to contact them through the franchise hotlines on their franchise opportunities page.
Conclusion
Buying a restaurant franchise is one of the most attractive routes in the world of franchising. Paris Banh Mi makes owning your own business a lot easier. Forget the high costs and headaches of starting from scratch. Their low investment and comprehensive training program mean you can be your own boss with a delicious product. If you are ready to take a bite out of success, contact Paris Banh Mi today!
Buying a franchise from Chick-fil-A is an excellent money-making and healthy option. The fast-food chain has been serving hungry consumers the most delicious chicken sandwiches unmatched by other fast-food restaurants. Buying a Chick-fil-A franchise means investing in a good business and your future. It also lets you continue the culture behind the popular food chain. Here are Chick-fil-A franchising opportunities that will give you entrepreneurial freedom in 2024.
Company Overview
Founded in 1946 by Truett Cathy, Chick-fil-A is deemed one of the longest-running chicken sandwich chains in the United States. The founder opened his first chain in Hapeville, Georgia, and has become a favorite soul food for many. Truett had worked in restaurants seven times a week and knew the importance of rest. That’s why he vowed to close Chick-fil-A every Sunday. He values rest and worship, so he sets aside one day of the week for his employees—a practice that Chick-fil-A still upholds today.
Chick-fil-A also selects franchisees that uphold their values and passion. The company takes great care in selecting who they do business with, which includes getting to know candidates through a lengthy and intensive selection process. The founder’s vision is to influence the people and communities they serve. Chick-fil-A also seeks franchise candidates in Puerto Rico, Canada, and the United States.
Chick-Fil-A candidates are required to show personal financial integrity and stewardship. They also need to have proven experience in leadership and a strong business acumen. Chick-fil-A ensures that candidates showcase entrepreneurial spirit, a strong character, and a growth mindset. This is to uphold the vision and values that Truett started in 1946.
Franchise Training Details
- The initial on-site training programs last three to four weeks. However, the duration and actual location of the training will vary.
- The training program primarily covers operational aspects, such as food preparation, service, customer relations, accounting, communications, purchasing, planning, maintenance, policies, management styles, and marketing.
- The franchisor may require franchisees to attend various conferences and seminars occasionally. This is on top of the initial training program.
- The franchisor may also offer various programs that operators can use in advertising products or hiring staff, which aren’t stipulated in the Franchise Agreement.
Franchise Territory
- The franchisor will grant franchisees one Chick-fil-A restaurant at the franchisor’s designated location.
- Franchisees will not get exclusive or protected territory, so they may face competition from other operators.
Franchise Obligations and Conditions
- Franchisees must devote their time and effort 100% to operating their Chick-fil-A restaurant.
- The franchisor only allows franchisees to sell products approved by Chick-fil-A. This also applies to franchisees with a Chick-fil-A-associated food truck.
Franchise Term and Renewal
The franchise term expires on early December 31, the year the agreement is signed or whatever the lease expiration is. Franchisees may apply for one-year extensions unless written notice is given 30 days before the franchise term expires.
Financial Assistance
- The franchisor designates locations, leases, and subleases the store’s premises to franchisees. The lease and sublease terms will vary depending on the type of Chick-fil-A restaurant and location.
- The franchisor also engages in concession agreements that oversee the utilization of non-traditional satellite unit locations with the proprietors or administrators of said satellite unit spaces.
- The franchisor offers extended payment periods for specific pre-opening costs stipulated in the Franchise Agreement. Additionally, the franchisor leases equipment to operators, charging a monthly rental fee based on the fair market rental value established by Chick-fil-A using its singular and exclusive business judgment. It’s important to note that neither the franchisor nor any affiliated entities provide any financing arrangements to operators, either directly or indirectly.
Did You Know?
Here are some fun facts about Chick-fil-A you need to know!
- Did you know that Chick-fil-A only uses peanut oil for frying? That’s what makes the chicken its unique flavor! Chick-fil-A is also the single most significant purchaser of peanut oil in the United States. They also believe peanut oil is a healthier option.
- The best Chick-fil-A promotional gig was the “First 100,” where the first 100 customers inside a new Chick-fil-A restaurant would get free chicken for a year.
- Did you know that the founder, Truett Cathy, invented the chicken sandwich? He worked for a restaurant in Atlanta, and the newly delivered chicken breasts were too big to serve as airline food. He turned this into a meal for the staff.
- You can get a free ice cream cone by walking up to the counter and trading your toy when ordering the kid’s meal.
Franchise Cost
Your Investment
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $10,000 | $10,000 |
| Opening Inventory | $13,500 | $140,000 |
| First Month’s Rental of Equipment | $750 | $5,000 |
| First Month’s Lease/Sublease of Premises | $2,550 | $85,500 |
| First Month’s Insurance Expense | $240 | $12,000 |
| Additional Funds | $491,345 | $2,550,935 |
| ESTIMATED TOTAL | $518,385 | $2,803,435 |
Other Fees
| Type of Fee | Amount |
|---|---|
| Advertising | May vary (a) between 0% to 3.25%, to be determined by Chick-fil-A, as a percentage of gross receipts or (b) by vote of operators in local or regional areas. |
| Advertising Support and Services Fee | Advertising support and services fees incurred, if any, will vary based upon the support and services offered by the franchisor, and selected and received by the operator; the current in-house blended hourly rate for services is $100; Operator will pay any additional fees, costs and expenses as applicable. |
| Additional Franchise Fee | $5,000 for each additional Chick-fil-A restaurant business. |
| Business Services Fee | $300 (monthly). |
| Rent (Traditional Restaurant) | $2,550 to $85,500 (including where applicable, percentage rent). |
| Occupancy Charge (Satellite Unit) | Determined under the concession agreement attached as an exhibit to the concession sublicense agreement; currently estimated to range between 4% and 30% of gross receipts. |
| Food Truck Usage Fee (Food Truck) | Currently $2,100 to $3,100, plus additional fees, costs and expenses. |
| Food Truck Insurance Fee (Food Truck) | Currently $250 to $450 (monthly). |
| Insurance | $240 to $12,000 (monthly). |
| Equipment Rental | Currently $750 to $5,000 (monthly). |
| Hardware and Software Support; High-Speed Internet Access | $9,500 to $20,000 (annually). |
| Fines – Minimum Standards and Procedures | Will vary under the circumstances. |
| Indemnification | Will vary under the circumstances. |
| Operating Service Charges | Determined by formula. |
| Credit Cards Fees and Related Processing Fees | Will vary. |
| Highway Signage | Will vary under circumstances. |
| Interest on Late Payments | The maximum rate permitted by law, or if none, 1.25% per month. |
| Cash Handling System Services | $85 to $450 (monthly) |
| Reimbursement of Cost of Performance | Costs and expenses of performance. |
| Holdover Liquidated Damages | Double the base rent and percentage rent. |
Here are the Chick-fil-A franchise costs:
If you’re looking for another investment opportunity, visit Franchise How’s website for more information.
Taking care of your home’s plumbing system is an essential part of being a homeowner. However, not everyone has the skill and patience to do it, and so franchises such as Zoom Sewer and Drain Cleaning are some of the most lucrative. Here’s what you need to know if you’re thinking of getting it:
Franchise Description
Zoom Sewer and Drain Cleaning provides drain cleaning, maintenance, sewer inspections, repair and replacement services for residential and commercial customers. The business began in 1995 and had been franchising since 2013. They have their headquarters in Norristown, Pennsylvania, and Zoom Franchise Company, LLC is the franchisor.
Training
Training for the franchisee’s principal owner and personnel will be provided by the franchisor or its representatives and agents. Before starting your franchise, Zoom Sewer and Drain Cleaning will require you to complete their training program. It comes in two phases:
- Phase 1: 2 to 3 days training at the Franchise Business
- Phase2: 2 to 3 days in Norristown, PA
The franchisor may also require you to attend additional training during the length of your term agreement. The franchisor is planning to hold a 2 to 3-day national Zoom Fest yearly. This will be held in Norristown, PA, or any location it designates. They will require franchisees to attend, but their managers will be welcome.
Territory
The franchisor will designate a protected territory where the franchisees will operate their business. Before signing any Franchise Agreement, both the franchisor and the franchisee will agree on a geographic territory.
The franchisor will base the protected territory on contiguous zip codes that will consist of approximately 500,000 individuals. This will be based on the most recent U.S. Census data at the time of signing the franchise agreement. This means that as long as the deal is taking effect, the franchisor or its affiliates will not locate, operate, or grant a franchise for another Zoom Sewer and Drain Cleaning business within the protected territory.
Obligations
The franchisor requires the franchisee or its principal owner to exert every effort to take responsibility for the management of the business. They will do this on a daily basis unless they agree on an alternate arrangement. With the franchisor’s discretion, the franchisee can hire a manager to handle the operations of the business.
Franchisors will also require you to sell products and services that have their approval. On the other hand, franchisees aren’t allowed to sell unauthorized products or services in compliance with the franchise agreement. Franchisees are also not allowed to solicit business outside of the protected territory. They are, however, permitted to serve customers outside of the protected territory as written in the FDD.
Term of Agreement
The initial franchise will take ten years after the signing of the agreement. You can renew the contract for another ten years, for four times, if you continue to meet the requirements.
Financial Assistance
Zoom Sewer and Drain Cleaning doesn’t offer direct or indirect financial assistance to its franchisees. In addition, they will not guarantee a franchisee’s note, lease, or obligation.
Did You Know?
Get to know more about Zoom Sewer and Drain Cleaning before you get that franchise. Here are some facts about the business:
- They have very little competition in the niche. Most of their competitors are independent plumbers and contractors
- According to the company’s co-founder and COO, Ellen Rohr, this is a recession-resistant business, and the Covid-19 pandemic has proven this
- They have a reported $12 million in revenue with 53 employees and 15 franchisees
Your Investment
The table below shows the estimated cost of a Zoom Sewer and Drain Cleaning franchise. Take note that these numbers may change without any prior notice.
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Lease | $3,000 | $9,000 |
| Leasehold Improvement | $2,000 | $40,000 |
| Furniture, Fixtures and Computer System | $7,500 | $13,000 |
| Vehicles | $7,000 | $9,500 |
| Vehicle Wrap and Design | $4,500 | $5,500 |
| Initial Equipment and Inventory of Supplies | $40,000 | $50,000 |
| Business Licenses and Permits; Deposits and Pre-Paid Expenses | $0 | $5,000 |
| Professional Fees | $500 | $3,000 |
| Insurance – Quarterly | $4,000 | $6,000 |
| Initial Training Expenses | $500 | $3,000 |
| Initial Marketing Expenses | $45,000 | $60,000 |
| Additional Funds – 6 months | $50,000 | $100,000 |
| ESTIMATED TOTAL | $199,000 | $341,000 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Royalty Fee | 5% of Net Sales. |
| Marketing Fee | Up to 2% of Net Sales. Currently, the franchisor does not charge this fee. |
| Call Center Fee | Up to $25 per scheduled appointment. Currently, the franchisor does not operate the Call Center or charge a Call Center Fee. |
| Technology Fee | The then-current Technology Fee; currently $500 per month. |
| Webpage Development and Optimization Fee | The then-current fee charged by the franchisor’s designated website SEO provider; currently $695 per month. |
| Additional Location Fee | The then-current Additional Location Fee; currently $2,000. |
| Transfer Fee | Up to 50% of the then-current Initial Franchise Fee. |
| Renewal Fee | Up to 25% of the then-current Initial Franchise Fee. |
| Additional Training and Assistance | Fee and all expenses. Currently $1,000 per day plus travel expenses. |
| National Conference | Reasonable fees and all expenses. |
| Testing for Supplier Approval | Reasonable fee. |
| Interest on Late Payments | Lesser of 1.5% per month or maximum legal rate. |
| Audit Fee | Cost of audit. |
| Taxes | Actual cost. |
| Indemnification | Will vary under circumstances. |
| Costs and Attorneys’ Fees | Will vary under circumstances. |
For other franchising information, check out more articles here at Franchise How!
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