Dickeys
Dickey's Barbecue Restaurants offers franchises specializing in barbecue meats and other foods. Known for its Texas-style barbecue, Dickey's operates in the quick-service restaurant sector.
Dickeys franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Dickey's Barbecue Pit franchised business ranges from $210,105 to $328,589 for delivery-carryout restaurants. For non-traditional and traditional restaurants, the respective ranges are $287,605 to $394,279 and $437,605 to $528,589. This includes a mandatory payment of $34,700 to $55,012 that must be paid to Dickey's or its affiliate [p.2].
What is the initial franchise fee?
The initial franchise fee is $20,000 for a Traditional Restaurant or $15,000 for a Non-Traditional Restaurant (including a Mobile Unit Franchise) or Delivery-Carryout Restaurant. This fee is due in a lump sum at the time you sign the Franchise Agreement and is non-refundable [p.22].
What are the ongoing royalty and advertising fees?
Ongoing royalty and advertising fees are based on a percentage of the franchisee's gross sales, with royalties included in operating income and advertising fee revenues in advertising income [p.293]. Additionally, there are minor one-time and monthly recurring fixed fees related to technology setup and ongoing services provided by the company [p.293].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in the provided excerpts. However, you may have the option to renew the franchise for an additional ten (10) years at your discretion, subject to conditions as determined by Dickey's [p.106].
Can I sell or transfer my franchise, and what does that require?
You cannot sell or transfer any direct or indirect ownership interest in the franchise without Dickey's prior written consent [p.143]. Additionally, you must notify Dickey's within five days of completing any Transfer of ownership and provide all relevant documents [p.143]. This restriction applies to both you and your Owner/Operator or Investors [p.143].
On what grounds can the franchisor terminate the agreement?
According to the FDD excerpts, a franchisor can terminate the franchise agreement for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice and a reasonable opportunity (no more than 30 days) to do so [p.6]. Additionally, termination without reasonable cause is unlawful under the Virginia Retail Franchising Act [p.184, p.266].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD sections discuss the franchisor's financial condition, working capital deficit concerns, and definitions of net sales, but they do not detail specific financial requirements for qualifying as a franchisee.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. The FDD indicates that your territorial rights are not protected from competition by other franchisees, outlets owned by the company, or competitive brands controlled by them [p.62]. Similarly, for the Mobile Unit Territory, it is also non-exclusive, and the franchisor retains the right to establish additional locations within this territory [p.316].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training through Barbecue University, with a fee of $1,800 for the Owner/Operator. Additional managers or personnel can also attend, though this incurs an additional cost of $800 per person. For new restaurants, there is an additional $3,000 required for online and on-site training before opening to ensure manager certification. Ongoing support includes a $10 monthly fee for successor, replacement, and ongoing manager training, which covers access to Barbecue University online and necessary materials. [p.292] mentions that the franchisor also provides pre-opening services such as site selection, real estate assistance, finance, and other related services, all considered part of a single performance obligation alongside the franchise license.
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 does not provide representations about a franchisee's future financial performance or past financial performance of company-owned or franchised outlets. However, if purchasing an existing outlet, actual records of that specific outlet may be provided [p.83]. Additionally, the franchisor instructs franchisees to report any other financial performance information received to their Legal Department and relevant regulatory agencies [p.83].
What am I restricted to selling, and where must I buy supplies?
You are required to offer and sell all menu items and other designated products and services as specified by Dickey's [p.75]. You may not change the menu items without Dickey's prior written consent. Additionally, you must obtain most food and beverage items, ingredients, supplies, equipment, and other products from vendors or suppliers approved by Dickey's [p.123], with some exceptions for items that can be obtained independently [p.4].