Crooked Pint
Crooked Pint Ale House Restaurant offers an urban pub-themed casual/fast-casual dining experience with a focus on beer and burgers. Known for its diverse beverage selection and food offerings, it operates in the competitive restaurant and bar franchise sector.
Crooked Pint franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment needed to open your first CROOKED PINT ALE HOUSE Restaurant is not explicitly stated, but it includes the $45,000 Initial Franchise Fee. Additional costs such as construction and equipment are estimated separately [p.14] and [p.27]. The total investment necessary to begin operation under a Multi-Unit Development Agreement ranges from $1,249,200 to $2,318,900, which includes the initial franchise fee and other development costs [p.19] and [p.1]. This isn't specified in the excerpts for a single restaurant without a multi-unit agreement.
What is the initial franchise fee?
The Initial Franchise Fee is $45,000 and it is a lump sum payment fully earned upon receipt, not refundable. This fee covers costs like training, manuals, opening assistance, legal fees, and general overhead [p.8].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 4% of Gross Sales for the first half of the initial term, with a potential increase to the greater of 4% of Gross Sales or the Royalty Fee charged by the franchisor during the second half of the initial term. The advertising fee is not specified in these excerpts; however, it is mentioned as one of the expenses you will incur [p.45].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement isn't specified in the excerpts. Additionally, while renewal terms are not detailed, the agreement mentions that you must sign a new franchise agreement for any renewal term [p.174], implying that renewal is possible but the specific conditions would be outlined in a new agreement.
Can I sell or transfer my franchise, and what does that require?
You can sell or transfer your franchise, but it requires specific conditions [p.140]. First, you must tender the franchisor's right of first refusal [p.143]. If they do not exercise this right, you need their prior written consent and must pay a transfer fee not exceeding $12,500 for transfers to immediate family members or among principal owners who have been owners for at least five years [p.143]. All other provisions of the agreement apply in full force and effect [p.140].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the Multi-Unit Development Agreement if the franchisee fails to exercise options to enter into Franchise Agreements within specified periods, fails to comply with terms and conditions, makes unauthorized transfers or assignments, or breaches individual Franchise Agreements or other related agreements. [p.32]
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, from outlets that the franchisor owns, or from other channels of distribution or competitive brands controlled by the franchisor [p.31]. The Designated Area does not provide exclusivity, and overlapping consumer service areas or trade areas are possible [p.31].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training at their facility or designated location, which includes classroom and hands-on instruction. This training is administered by experienced personnel such as Tim Kreiser and Ashley MacDonald. Additionally, the franchisor may require the franchisee to send key employees for ongoing training at their expense. The franchisee must also cover an annual academy fee for online training materials. [p.133, p.30]
How many franchised outlets are there, and how many have closed or been terminated?
The FDD indicates that as of December 31, 2022, there were 13 franchised Crooked Pint Ale House Restaurants operating during the entire fiscal year. However, this number does not specify how many outlets have closed or been terminated; this information is not provided in the excerpts. [p.41]
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.41]. However, the franchisor does not make any representations about future financial performance or past financial performance of company-owned or franchised outlets except under specific conditions [p.45]. Written substantiation can be provided upon request [p.45].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the Menu Items and other food and beverage products as designated and approved by the franchisor from time to time. You must purchase all inventory products, materials, and other items and supplies used in the operation of the restaurant from approved suppliers listed by the franchisor [p.128], which may include specific sources for certain items such as Coca-Cola North America for beverages and related equipment [p.20]. This includes approved supplies like clothing and novelty items that must contain one or more of the franchisor's trademarks [p.129].