Doner Shack
Doner Shack offers fast casual German-inspired street food franchises, including kebabs and fried chicken. Known for its diverse menu of sliders, fries, and beverages, Doner Shack operates in the competitive quick-service restaurant sector.
Doner Shack franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment required to open a Doner Shack Restaurant ranges from $498,000 to $1,007,000. This figure includes all items outlined in Chart 7.A., except for the Initial Franchise Fee, and does not include costs for additional franchises or any potential additional expenses during the first three months of operation [p.21].
What is the initial franchise fee?
The initial franchise fee is $40,000 and it is deemed fully earned and non-refundable upon payment. This amount must be paid immediately upon execution of the Franchise Agreement [p.12, p.62].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is six percent (6%) of the Gross Sales generated by the Franchised Business in the preceding week [p.62]. For local advertising, you must spend a minimum of two percent (2%) of the Gross Sales each calendar month on approved local advertising and marketing [p.32].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement's term length isn't specified in these excerpts. However, you may request to renew the agreement for up to two additional consecutive terms of five years each, provided you submit your renewal request between six and twelve months before the end of the current term, and comply with any conditions set by the franchisor [p.61].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can transfer your ownership of the franchise, but the franchisor has the right to refuse such a transfer for good cause [p.6]. Additionally, any transfer must comply with applicable laws and not be so burdensome as to impair the prospective transferee's operation or performance under the franchise agreement [p.90].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on various grounds, including if the franchisee fails to comply with lawful provisions of the franchise agreement and does not cure such failure within a reasonable time frame [p.6]. Additionally, the franchisor may terminate the agreement for good cause, which is broadly defined and includes defaults by the franchisee that are not cured in a timely manner [p.93].
What financial requirements — net worth and liquid capital — do I need to qualify?
The franchisee must demonstrate adequate financial resources and capital to meet the performance obligations under the agreement [p.24]. However, specific net worth or liquid capital figures are not provided in these excerpts. [p.89]
Do I get an exclusive or protected territory?
You do not receive an exclusive territory, but you are granted a Protected Territory. The size of your Protected Territory is determined based on demographic and population specifics of your location, with typically smaller territories in metropolitan areas compared to suburban/rural areas [p.35, p.36, p.57].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that includes methods and techniques related to establishing and operating a franchise. This training is typically conducted over three to five weeks at their facility in Miami Beach, FL (or another designated location), and is tuition-free for one of your management personnel along with any other personnel you designate. You must complete this training to the franchisor's satisfaction at least 60 days before opening the Franchised Business [p.27]. Additionally, ongoing support includes requiring franchisees to participate in additional or refresher training each year and attend the annual conference if conducted [p.73].
How many franchised outlets are there, and how many have closed or been terminated?
The FDD does not specify the exact number of franchised outlets currently operating. However, it mentions that there are no U.S. operations at the time of disclosure [p.48]. Regarding closures or terminations, Exhibit H provides a list of canceled, not renewed, or otherwise ceased franchises, but specific numbers are not given in the excerpts provided [p.49].
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information based on actual records of an existing outlet you are considering buying. Additionally, they can supplement the information provided in Item 19 with projections for a particular location or circumstances, but they do not make representations about future financial performance [p.47].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling only the Approved Products and Services as specified by the franchisor. You must use their approved suppliers for certain pre-opening architectural/design services, signage, equipment, furniture, fixtures (including a designated POS system), paper goods, menus, and other items bearing the Proprietary Marks. Additionally, you are required to purchase food and ingredients from mandatory suppliers, including meat and bread suppliers, to prepare the Approved Products [p.22, p.71].