Biscuit Belly
Biscuit Belly offers franchises in biscuits, sandwiches, and southern breakfast fare. Known for its hearty comfort food, it operates in the quick-service restaurant sector.
Biscuit Belly franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of a Biscuit Belly ® Restaurant ranges from $824,000 to $1,341,500. This includes a mandatory payment of between $40,950 and $78,350 to the franchisor or its affiliates for area development rights if applicable [p.1].
What is the initial franchise fee?
The initial franchise fee is $40,000, which is due when you sign the Franchise Agreement and is nonrefundable [p.11, p.79]. This fee covers costs such as site review and approval, legal compliance, general administrative expenses, and profits [p.207].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5.00% of gross receipts, payable weekly [p.79]. Additionally, there's a brand promotion and advertising fund contribution that starts at 0.75% of gross receipts and can be increased to 1.00%, also payable weekly [p.188] and [p.33].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can sell or transfer your interest in the franchise agreement and restaurant, but the franchisor has a right of first refusal. This means they have the option to purchase your franchise before allowing any other potential buyer. [p.107] Good cause for denying this right is not specified in these excerpts.
On what grounds can the franchisor terminate the agreement?
According to [p.5], a franchisor may terminate a franchise prior to expiration only for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice and a reasonable opportunity (no more than 30 days) to do so. [p.N]
What financial requirements — net worth and liquid capital — do I need to qualify?
To qualify as a franchisee, you need sufficient liquidity to meet your obligations throughout the term of the agreement [p.145]. Additionally, you must independently determine that you have the necessary capital to fund both the business and living expenses during the start-up phase [p.196]. The franchisor may require evidence of working capital availability upon request [p.77], but specific net worth requirements are not detailed in these excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory under the Franchise Agreement [p.38]. However, during the term of your Franchise Agreement and as long as you are in compliance with it, the franchisor will not operate or grant others the right to operate any other Restaurant within a specified geographic area (the 'Protected Territory'), which typically comprises a population of 25,000 to 40,000 [p.38].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training for up to four Designated Managers for the first two Restaurants at no cost. For each subsequent Restaurant, a fee of $35,000 is charged if certain conditions are not met, such as certification of a trainer or a training center. Ongoing support and training responsibilities primarily fall on the franchisee after initial training [p.81, p.35].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, there were six franchised Restaurants. However, this number includes a Reacquired Restaurant that operated for almost 10 months in 2024. The exact number of closed or terminated outlets is not specified in the excerpts provided.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information for its outlets, but only under specific conditions as outlined [p.54]. This includes actual records of existing outlets being considered for purchase or supplementary information provided by the franchisor [p.58]. The franchisor does not make any financial performance representations beyond what is included in Item 19 of the FDD and does not authorize its employees to make such representations [p.57, p.58].
What am I restricted to selling, and where must I buy supplies?
You are not specifically restricted to selling any particular items, but you may have to buy certain items from the franchisor or a limited group of suppliers they designate [p.3]. Additionally, if the franchisor enters into Systemwide Supply Contracts with vendors for products, services, or equipment, you must purchase the specified items only from the designated supplier upon notification [p.23]. You are also required to purchase Operating Assets from approved or designated suppliers, which may include or be limited to the franchisor or their affiliates [p.23].