Andys Frozen Custard
Andys Frozen Custard offers frozen custard and other desserts in franchised stores. Known for its creamy treats, it operates in the quick-serve restaurant sector.
Andys Frozen Custard franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of an ANDY'S FROZEN CUSTARD Store ranges from $1,119,500 to $2,916,000 [p.1]. This includes a mandatory payment of $32,000 to the franchisor or its affiliates and covers various startup expenses as outlined in the FDD.
What is the initial franchise fee?
The initial franchise fee currently stands at $32,000 for the first franchise. If you are an existing franchisee in good standing and purchase a second or additional franchise, the initial franchise fee is $28,000 for each additional unit [p.17].
What are the ongoing royalty and advertising fees?
The ongoing royalty is based on a percentage of gross sales, with the specific rate depending on the number of Andy's Frozen Custard Stores you operate [p.165]. As for advertising fees, they are expensed as incurred and included in 'General and administrative' and 'Advertising fund expense,' but the exact amount isn't specified in these excerpts [p.14, p.165].
How long is the initial franchise agreement, and can I renew it?
The term of the new franchise agreement signed upon transfer will be ten (10) years as long as the transferee maintains possession of the premises during that period [p.100]. The franchise license can also be renewed subject to the execution of a current Franchise Agreement and may involve signing an amended document [p.140].
Can I sell or transfer my franchise, and what does that require?
You can sell or transfer your franchise, but it requires your consent. If the transfer is non-controlling, your owners must notify the franchisor in writing before proceeding. For a controlling ownership interest transfer, both you and the transferee need to sign the current form of franchise agreement, which may include different terms for royalties and contributions. [p.100] Additionally, the term of the new agreement will be ten years if the transferee maintains possession of the premises during this period. [p.100]
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. According to [p.37], because other franchisees, outlets owned by the company, or competitive brands may operate within your development area, you could face competition from various sources.
What training and ongoing support does the franchisor provide?
The franchisor provides initial and ongoing brand standard training programs for store managers [p.84]. They also offer guidance on various aspects such as operating procedures, purchasing required items, advertising, employee training related to brand standards, and administrative tasks [p.27]. However, the franchisor does not dictate or control labor or employment matters; franchisees are responsible for determining the terms and conditions of employment for their employees [p.27].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information from actual records of an existing outlet you are considering buying, but they do not make any representations about a franchisee's future financial performance or past performance of company-owned or franchised outlets beyond what is included in the disclosure document. [p.54] Additionally, the financial performance information provided reflects data from affiliate-owned stores and may exclude certain types of costs and expenses due to varying reporting methods among different store types. [p.51]
What am I restricted to selling, and where must I buy supplies?
You are not specifically restricted to selling any particular items, but you must buy certain supplies from designated sources. According to [p.20], you currently must buy all your custard mix, nuts and other toppings, root beer, frozen custard making machines, and the POS System from designated suppliers. Additionally, Trade Secret Food Products must be purchased only from specified exclusive sources during the franchise term ([p.19]). This isn't specified in the excerpts for other goods and services you might need to buy or lease.