Balance Pan Asian Grille
Balance Pan Asian Grille offers an Asian-Fusion menu in brick-and-mortar restaurants, suitable for on-premises and carryout consumption. Known for its diverse cuisine, it operates in the fast-casual dining sector.
Balance Pan Asian Grille franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of a single Balance Pan-Asian Grille franchised restaurant ranges from $768,142 to $1,228,680. This includes a payment of $55,475 to $74,330 that must be paid to the franchisor or an affiliate [p.1].
What is the initial franchise fee?
The initial franchise fee is $35,000 for a traditional Balance Grille Restaurant [p.10, p.77, p.20]. This fee is non-refundable and due upon signing the Franchise Agreement [p.10, p.77, p.20]. Discounts are available for Veterans, Active Duty Personnel, and First Responders, reducing the initial franchise fee to $28,000 [p.20].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 6% of net sales [p.77, p.184], and the franchisee pays a fee to support advertising for increasing brand awareness; during 2023 and 2022, these amounts were $70,954 and $35,482 respectively [p.185].
How long is the initial franchise agreement, and can I renew it?
The initial franchise term typically lasts for ten years [p.184]. At the end of this term, franchisees have the option to renew their agreement, which involves paying a nonrefundable renewal fee similar to the initial franchise fee [p.184].
Can I sell or transfer my franchise, and what does that require?
You cannot transfer your Franchised Business to a third party who will operate a similar business at the Accepted Location but not under the System and not under a franchise agreement with the franchisor. A transfer fee must be paid, which is $15,000 if the transferee (or one of its affiliates) is not a current 'Balance Pan-Asian Grille' franchisee, or $5,000 if they are. Additionally, if a broker was involved in the transfer, any applicable commission to the broker must also be paid [p.118].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if you (and/or your affiliates) have committed a Terminal Offense under the terms of any other franchise agreement or contract between you and the franchisor. A Terminal Offense is defined as any action (or lack of action) that gives the franchisor the right to terminate any other such agreement [p.123].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide specific details on net worth or liquid capital requirements for qualification as a franchisee. However, it does state that new principals must have adequate financial resources and capital to operate the Franchised Business [p.117].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, and other channels of distribution or competitive brands controlled by them [p.45, p.43]. The franchisor also retains the right to establish Restaurants outside the Protected Area [p.72] and can grant Development Agreements to others [p.8], further indicating a non-exclusive territory arrangement.
What training and ongoing support does the franchisor provide?
The franchisor provides a training program that your 'Core Personnel'—including Market Operations Person and specified management personnel—must attend and successfully complete. This training must be completed at least 60 days before opening the restaurant. Additionally, you may send up to four additional individuals to this initial training program, though there is an associated discounted fee for those beyond the Core Personnel. [p.41]
How many franchised outlets are there, and how many have closed or been terminated?
The FDD does not specify the number of closed or terminated franchised outlets. It only mentions that as of December 31, 2023, there was one opened franchised location in operation [p.45].
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information if there is a reasonable basis for it and if certain conditions are met, such as providing actual records of an existing outlet you are considering buying [p.55]. However, the franchisor does not make any representations about future financial performance or past financial performance of company-owned or franchised outlets [p.62].
What am I restricted to selling, and where must I buy supplies?
You are required to sell only items that bear the franchisor's Proprietary Marks and must purchase Input Items, including ingredients and other products and services used at the Restaurant, from approved suppliers [p.87, p.86]. The Initial Technology Package can be purchased from third-party vendors or directly from the franchisor, with components bought directly from them being pre-configured for use in your restaurant [p.11].