Bobbys Burgers
Bobbys Burgers offers quick-serve burgers and fries in family-friendly restaurants, known for their contemporary décor and connection to celebrity chef Bobby Flay. Operating in the fast-food restaurant industry.
About Bobbys Burgers
Bobby's Burgers is an upscale group of fast casual restaurants founded by Chef Bobby Flay. It was preceded by Bobby's Burger Palace, which was founded in 2006. Most Bobby's Burger Palace locations closed permanently during the COVID-19 pandemic, and Bobby's Burgers was launched in 2021.
Read more on Wikipedia → · Facts from Wikipedia (CC BY-SA)
Bobbys Burgers franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a single Bobby's Burgers by Bobby Flay Restaurant is estimated to range from $559,300 to $3,167,800. This includes an amount ranging from $86,500 to $143,000 that must be paid to the franchisor or its affiliate. [p.1]
What is the initial franchise fee?
The initial franchise fee for a Restaurant is $40,000 and it is non-refundable. [p.74, p.9, p.19]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is based on a percentage of Net Sales, specifically 3% of Net Sales, which also includes a Brand Fund Contribution of 3% of Net Sales. These fees are collected weekly through ACH withdrawal from your bank account on Wednesdays following the end of each Calendar Week [p.15]. This information isn't specified in the excerpts for exact amounts but indicates that both royalty and advertising fees (Brand Fund Contributions) are derived from a percentage of Net Sales.
How long is the initial franchise agreement, and can I renew it?
The initial term of the Franchise Agreement is 10 years [p.16]. You may renew the agreement for two consecutive five-year terms (each a 'Renewal Term'), provided you comply with the renewal requirements set by the franchisor, which include paying a renewal fee that is 50% of the initial franchise fee then being charged to new Bobby's Burgers franchisees [p.16].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires providing Franchisor with a written request for transfer along with specific Required Materials [p.84]. This includes financial information about the transferee, pertinent terms of the transaction, and payment of a Transfer Fee equal to one-half of the then-current Initial Franchise Fee [p.15].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on various grounds, including if the franchisee fails to comply with any lawful provision of the Franchise Agreement and does not cure such failure within 30 days after receiving written notice [p.134]. Additionally, termination is permitted if there's a failure to satisfy development obligations or other specified conditions outlined in the agreement [p.114].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD mentions that Franchisor may require current financial statements and other financial documentation regarding your (and your Principals') financial condition, but it does not specify particular net worth or liquid capital requirements [p.N].
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, or other competitive brands within your area [p.34, p.37]. However, under certain conditions, the franchisor and its affiliates retain the right to operate Restaurants in your designated area after the Development Agreement Rider expires or is terminated [p.112, p.61, p.36].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial Training System that includes both classroom and on-the-job training [p.31]. This system is led by experienced instructors, including Kevin Matias, the Director of Operations Services & Training [p.31], and may involve third-party specialists [p.33]. The franchisor also reserves the right to offer additional formal and informal training sessions from time to time [p.33]. For ongoing support, the franchisor may require franchisees to purchase online, DVD, or streaming training programs and ensure a computer is available for these courses [p.33].
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 such information is included in the Disclosure Document [p.49]. However, the franchisor does not make any representations about future financial performance of franchises or company-owned outlets [p.49], nor do they authorize their employees or representatives to make such representations either orally or in writing.
What am I restricted to selling, and where must I buy supplies?
You are required to sell only those items, products, and services that have been expressly approved in writing by the franchisor. You must adhere to their standards and specifications without deviation unless prior written consent is obtained. Additionally, all food products, ingredients, equipment, furniture, fixtures, décor, signs, computer equipment, supplies, and other materials used in operating your restaurant must meet the franchisor's standards and be purchased only from Approved Suppliers or Designated Suppliers as specified in the FDD [p.23].