Country Kitchen
Country Kitchen offers family dining with hand-made, cooked-to-order meals in a farmhouse setting. Known for its dine-in and carry-out services, this restaurant franchise ranges from $565,000 to $1,674,000 to start. Part of the casual dining industry.
Country Kitchen franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment for opening a standard Country Kitchen ranges from $565,000 to $1,674,000, exclusive of the cost of real estate. This includes an initial franchise fee of $40,000 that must be paid to the franchisor, with additional deposits required if you sign an Area Development Agreement for each additional Country Kitchen. [p.2]
What is the initial franchise fee?
The initial franchise fee is $40,000 upon execution of the Franchise Agreement for the first Country Kitchen. For each additional Country Kitchen under an effective Area Development Agreement (ADA), the fee is reduced to $35,000 for the second and third kitchens, and $25,000 for any subsequent ones [p.164, p.18]. This fee is non-refundable [p.11].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 0.50% of franchise sales [p.243], while the ongoing advertising fee for Country Kitchen franchisees located within viable cooperative territories is generally equal to a maximum of 3% of gross revenues [p.241]. If a franchisee is not located within an active area, they expend 3% of gross revenues on local advertising or as otherwise indicated in the individual contract [p.241].
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, for non-renewal of the Agreement, consent to transfer of the franchise will not be unreasonably withheld, and you would typically need to provide 180 days' notice [p.215]. However, specific procedures for selling or transferring your franchise are not detailed in these excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement upon expiration of the term, including any extended term. Additionally, specific grounds for termination include Developer's failure to comply with the terms and conditions outlined in the franchise agreement [p.176]. This isn't specified in the excerpts for other explicit grounds of termination by the franchisor.
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?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the franchisor, and other channels of distribution or competitive brands controlled by the company [p.33, p.70]. The franchisor also reserves the right to operate or license others to operate Country Kitchens in specific locations like travel centers, airports, and other institutional or public service operations within your Marketing Area or Development Area [p.33, p.35].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training materials and supplies as part of the system [p.86], and offers a management training program that can be accessed at their Training Country Kitchens or Corporate Headquarters in Middleton, Wisconsin [p.32]. However, additional or replacement training materials and supplies must be purchased by the franchisee if specified [p.86]. Managers for new locations need to complete the franchisor's training program at a certified training restaurant unless one of their own is approved as such [p.166], with travel and lodging expenses covered by the franchisee but no charge for instructional time provided [p.33].
How many franchised outlets are there, and how many have closed or been terminated?
According to Item 20 on page [p.2], the FDD summarizes the recent history of both company-owned and franchised outlets, but it does not provide specific numbers for either active or terminated outlets.
Does the franchisor share any financial performance or earnings information?
The franchisor is permitted to provide actual or potential financial performance information of its outlets if there is a reasonable basis for it and if such information is included in the disclosure document. However, they do not make any representations about future financial performance or past financial performance of company-owned or franchised outlets, nor authorize their employees or representatives to do so [p.54]. If you receive any other financial performance information or projections, you should report it to management and relevant regulatory agencies [p.54].
What am I restricted to selling, and where must I buy supplies?
You are restricted to serving, selling, or offering for sale only the food and beverage products listed in the current standard menu, which must meet your franchisor's uniform standards of quality and portions. Additionally, these items must be prepared according to designated recipes and methods and supplied by approved vendors [p.40]. You may have to buy or lease certain items from the franchisor or a limited group of suppliers they designate, as these items might be more expensive than those you could purchase on your own [p.3].