Big Whiskeys
Big Whiskey's American Restaurant & Bar offers a full-service dining experience with a variety of menu items including steaks, wings, and burgers, alongside an extensive bar selection. Known for its robust whiskey collection, this franchise operates in the casual dining and bar services industry.
Big Whiskeys franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Big Whiskey's American Restaurant & Bar® ranges from $1,266,500 to $4,011,500 per restaurant [p.2]. This amount includes the $50,000 initial franchise fee that must be paid to the franchisor.
What is the initial franchise fee?
The initial franchise fee is $50,000 for the first Restaurant owned and operated by Franchisee or its affiliate under an Area Development Agreement. For subsequent Restaurants, it is $40,000 [p.147]. This isn't specified in the excerpts for a single non-Area Development Agreement scenario without additional context.
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of weekly Adjusted Gross Revenue, due and payable each Tuesday for the previous week's revenue [p.147]. Advertising costs are expensed when incurred by the company [p.65], but specific details about advertising fees from franchisees are not provided in these excerpts.
How long is the initial franchise agreement, and can I renew it?
The initial term of the Franchise Agreement is not specified in the excerpts. However, you have the right to renew the Franchise for an additional five-year term if certain conditions are met, as detailed on [p.170].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise. However, a transfer fee equal to 50% of the current initial franchise fee must be paid if the transferee is not already a Big Whiskey's® franchisee [p.167]. Additionally, upon assignment, Franchisee remains jointly and severally liable for all obligations under the agreement [p.168]. The protected area will not be modified on renewal or transfer of the franchise [p.34].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if the franchisee fails to obtain approval of a location for the restaurant and execute Exhibit A within 90 days after the date of the Franchise Agreement [p.192]. Additionally, the franchisor has the right to terminate the agreement immediately upon delivery of notice of termination if the franchisee fails to timely execute the Franchise Agreement and tender payment of the initial franchise fee [p.83].
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 are granted a Protected Area where you have the exclusive right to locate a Big Whiskey's® Restaurant [p.191]. However, this exclusivity does not extend to other areas outside your Protected Area, and the franchisor may still open additional restaurants in your area or use other distribution channels [p.33].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program for various members of the management team, including classes ranging from two days to five weeks. Additionally, refresher training courses, additional training programs, and seminars are required, with instructors and materials provided by the franchisor but at the franchisee's expense [p.137]. The franchisor also assists in establishing a Training Restaurant for comprehensive training and may conduct initial training sessions at its corporate headquarters or company-owned restaurants in Springfield, Missouri [p.76].
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 is permitted to provide financial performance information if there is a reasonable basis for it and if it supplements the information given in Item 19 [p.47]. However, other than the information provided in Item 19, no financial performance representations are made about any restaurant's results or projections [p.47].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the menu items, food products, beverages, and other products and services that the franchisor requires and authorizes. You must purchase proprietary sauces, salad dressings, wine, beer, and other specified products from the franchisor, its affiliates, or an approved supplier designated by them [p.17]. Additionally, you are required to strictly comply with all standards and specifications for these items as well as other goods used in the restaurant [p.39].