Buffalos Cafe
Buffalos Cafe offers casual dining restaurants featuring American fare with classic and regional flavors. Known for co-branded locations within Fatburger or Johnny Rockets, this franchise requires significant investment for single or multi-unit operations in the restaurant industry.
Buffalos Cafe franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of a single Buffalo's Café is estimated between $857,300 to $2,930,600. This includes the initial franchise fee of $50,000 [p.31], but does not include the cost of real estate and improvements [p.34].
What is the initial franchise fee?
The initial franchise fee is $50,000 for the first restaurant and each subsequent restaurant. However, this fee can vary if a Multi Unit Restaurant Agreement or an Area Development Agreement is signed, potentially offering reduced fees under certain circumstances [p.31, p.22, p.264].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is calculated as a percentage of Net Sales, specifically the Royalty Rate multiplied by the Net Sales of the Restaurant [p.101]. For advertising contributions, the franchisee pays based on the rates applicable to new franchisees at the time of renewal or transfer [p.99, p.124], and these fees can be higher than those under the original agreement. This isn't specified in the excerpts for a fixed percentage or amount.
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement automatically renews for successive one-year terms unless either party provides at least 60 days' prior written notice not to renew [p.230]. This means that if no notice is given, the agreement will continue to renew annually until terminated otherwise [p.230].
Can I sell or transfer my franchise, and what does that require?
Based on the provided excerpts, a franchisor can generally refuse to permit the transfer of ownership of a franchise except for good cause [p.6]. Good cause is not defined in these excerpts but typically includes specific reasons such as financial issues or violations of the franchise agreement. This means you would need to seek approval from the franchisor if you wish to sell or transfer your franchise [p.175].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.264]. Additionally, according to the franchise agreement, the franchisor has the right to terminate it if all monies in the Business Franchise Advertising Fund (BNAF) have been spent as specified or returned to contributors based on their contributions [p.54].
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 franchisees. However, it mentions that creditworthiness is a factor considered by financing sources, and there are external financing options available up to 70% of equipment, fixtures, and real estate costs for those who meet certain criteria [p.43].
Do I get an exclusive or protected territory?
You do not receive an exclusive territory. However, you will have a protected territory described in your Franchise Agreement, which typically covers a one-mile radius around the restaurant but may vary based on factors like population density. This protected area is subject to certain restrictions and does not prevent competition from other franchisees or outlets owned by the company. [p.58, p.59]
What training and ongoing support does the franchisor provide?
The franchisor provides initial training programs at their home office or another location of their choice for new franchisees. This includes an Owner Training Program and a Five Week Manager Training Program, as well as an Employee On-Site Training Program lasting up to fourteen days post-opening. Ongoing support requires that personnel receive ongoing training in the use and operation of the Brand Technology System. If support is needed that could have been resolved by properly trained personnel, the franchisor may invoice for such support at their current hourly rates [p.235].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, there were no franchised Smokey Bones restaurants operating [p.12]. The document does not specify the number of closed or terminated franchises beyond mentioning that two 'Buffalo's Express Cafe' franchises closed in 2009 [p.13], but it does not provide information on any terminations or closures since then.
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 it is included in the disclosure document. However, they do not make any financial performance representations other than those specified, nor authorize their employees or representatives to make such representations [p.76]. This isn't specified in the excerpts regarding whether financial performance or earnings information is shared beyond what is required by law.
What am I restricted to selling, and where must I buy supplies?
You are restricted from selling or offering for sale any merchandise without first obtaining prior written approval from the franchisor [p.110]. Additionally, you may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options [p.4].