Country Kitchen Restaurants
Country Kitchen Restaurants offers family dining with hand-made, cooked-to-order meals in a farmhouse-themed atmosphere. Known for its dine-in and carry-out services, this franchise is part of the casual dining restaurant industry.
Country Kitchen Restaurants 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 $605,000 to $1,759,000, and for a limited service café style Country Kitchen, it ranges from $455,000 to $994,000. These amounts include the initial franchise fee of $40,000 plus an additional deposit of $20,000 for each additional Country Kitchen under an Area Development Agreement [p.3].
What is the initial franchise fee?
The initial franchise fee is $40,000 and is due and payable upon execution of the Franchise Agreement. For subsequent Country Kitchens opened under an effective Area Development Agreement (ADA), the fee is reduced to $35,000 for the second kitchen and $25,000 for each additional one [p.20]. This fee is non-refundable [p.88].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 1% of the franchisee's Gross Receipts from the operations of the Restaurant, as stated in [p.88]. There are no deductions allowed for non-performance by the franchisor, according to [p.90].
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, consent from the franchisor for transferring the franchise will not be unreasonably withheld [p.210]. However, specific procedures for selling or transferring the 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 [p.174]. Additionally, while not explicitly stated in these excerpts, the franchisor may also terminate the agreement if a transfer is proposed to a competitive business or if the transferee fails to meet certain educational, managerial, and business standards [p.108]. This isn't specified in the provided excerpts for direct 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. The FDD does not provide specific details on net worth or liquid capital requirements for qualification as a franchisee.
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.37]. The franchisor also reserves the right to operate or license others to operate Country Kitchens in various types of locations within your designated area, such as travel centers, airports, and other institutional or public service operations [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.34, p.87], and oversees the management training program through Craig Jansen, the Director of Operations and Education [p.34]. Franchisees are responsible for additional travel and lodging expenses when managers need to be trained at a Certified Training Country Kitchen [p.35]. This isn't specified in the excerpts regarding ongoing detailed support mechanisms beyond initial training.
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 may provide actual records of an existing outlet's financial performance if you are purchasing one. However, they do not make representations about future financial performance or past financial performance of company-owned or franchised outlets, and they do not authorize their employees or representatives to make such claims [p.57].
What am I restricted to selling, and where must I buy supplies?
You are restricted to serving, selling, or offering for sale all food and beverage products listed in the current standard menu, which must meet uniform quality standards and have been prepared according to designated recipes and methods. You may only purchase these items from approved vendors and suppliers as specified [p.43]. Additionally, you must buy or lease certain items from the franchisor or a limited group of suppliers they designate, which may be more expensive than other options [p.5].