Bar Louie
Bar Louie offers upscale casual dining with gastrobar concepts, featuring on-premises alcohol, third-party delivery, and catering. Known for its development opportunities, it operates in the casual dining and bar franchise sector.
About Bar Louie
Bar Louie is an American bar and restaurant chain founded in 1990. Bar Louie serves food, beer, and cocktails, from locations predominantly located in urban and suburban markets. As of 2022 there are approximately 69 locations. Bar Louie is headquartered in Addison, Texas, and Tom Fricke is the company's chief executive officer. Sun Capital Partners is a major investor in the company dating back to June 2010.
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Bar Louie franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to open one Bar Louie Gastrobar ranges from $1,064,500 to $3,949,000 (including $50,500 due to the franchisor or an affiliate), as per [p.1].
What is the initial franchise fee?
The initial franchise fee is $50,000 and is due upon signing the Franchise Agreement. This fee is nonrefundable and is used to cover services such as training, promotional assistance, site selection guidance, and other services provided by the franchisor [p.74, p.21].
What are the ongoing royalty and advertising fees?
The franchisee must remit an ongoing royalty fee of 5% of their gross sales [p.74]. Additionally, the franchisee is required to contribute towards marketing efforts through advertising contributions, though specific percentages or amounts for these contributions are not detailed in the provided excerpts.
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement's duration isn't specified in the excerpts. Regarding renewal, you may be able to renew your franchise, but this is subject to certain conditions contained in Exhibit C, Section 2.2 of the Franchise Agreement [p.16]. Additionally, if you are an entity, your direct and indirect owners must also sign and deliver a personal guarantee for any obligations under the renewal form of the franchise agreement [p.72].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it is subject to certain conditions [p.114]. You must not transfer the Franchised Business to a third party who will operate a similar business at the Accepted Location without using the System and Proprietary Marks under a franchise agreement with the franchisor [p.114]. Additionally, you are required to pay a transfer fee of either $5,000 or 10% of the initial franchise fee charged to new franchisees (whichever is more), and if a broker was involved, any applicable commission must also be paid [p.113].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement if you fail to meet your obligations under the Development Agreement, including development obligations, or breach any Franchise Agreement signed by you under the Development Agreement [p.39]. Additionally, if you do not find an acceptable site within 90 days after signing the Franchise Agreement and the franchisor exercises its right to terminate, this can also lead to agreement termination [p.33].
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?
Yes, you will receive a protected territory for your restaurant. However, the company retains the right to establish Bar Louie Restaurants in limited use facilities within your territory and can also operate such restaurants outside your protected territory [p.38, p.69]. Additionally, post-termination or expiration of the agreement, certain restrictions apply only within the Protected Territory and its vicinity [p.121].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training that takes approximately four weeks to complete, covering various topics as detailed on a training chart. This initial training must be completed before opening the restaurant. Additionally, the franchisor offers ongoing brand-specific information including food and beverage requirements, supplier recommendations, marketing materials, operations manuals, and licenses to certain franchise intellectual property [p.212].
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 actual records of an existing outlet if you purchase one. Otherwise, they do not make any financial performance representations and do not authorize their employees or representatives to make such representations [p.56]. However, they can supplement the information provided in Item 19 under certain conditions [p.50].
What am I restricted to selling, and where must I buy supplies?
You must buy all required items, including Products, ingredients, equipment, furniture, and other materials, only from the franchisor or approved suppliers [p.81, p.3]. You are also required to purchase or source certain items in accordance with written standards and specifications provided by the franchisor [p.83, 7.3]. For selling, you must offer and sell items that bear the franchisor's Proprietary Marks only from approved suppliers as specified [p.83, 7.1.7]. This isn't specified in the excerpts regarding restrictions on external sales or distribution methods beyond your Territory.