Famous Toastery
Famous Toastery offers full-service restaurants serving breakfast, lunch, and cocktails in various locations. Known for its diverse menu and casual dining atmosphere, it operates in the quick-service restaurant sector.
Famous Toastery franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment to enter into a single unit Famous Toastery Restaurant Agreement ranges from $687,500 to $1,206,000. This includes an initial payment of $60,000 to the franchisor or its affiliates [p.1].
What is the initial franchise fee?
The initial franchise fee is $50,000 [p.13, p.20], and it is non-refundable [p.158] and due upon signing the Franchise Agreement [p.13]. This fee applies to each respective Development Restaurant [p.225, p.235].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is a continuing weekly fee equal to 5% of your weekly Gross Sales [p.133]. Additionally, you must contribute a weekly sum not to exceed 2% of your weekly Gross Sales to the Brand Development Fund [p.32], and all advertising and marketing materials used by you in promoting your Restaurant must be pre-approved by the franchisor [p.32].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement isn't specified in detail within these excerpts. However, you have the option to renew the franchise for two additional five-year terms (Renewal Term) under certain conditions [p.161]. This Renewal Term is not available if the Franchised Business was previously operated or developed under a prior Franchise Agreement with the franchisor or its predecessors [p.161].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires the franchisor's approval. The franchisor may refuse to permit a transfer for good cause, which includes but is not limited to unspecified criteria [p.248]. Additionally, the proposed transferee must meet certain standards regarding moral character, business experience, financial resources, and cannot own or operate a competitive business [p.157]. This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.251]. Additionally, the franchisor may terminate for good cause, such as the franchisee's failure to comply with lawful provisions of the franchise agreement and failing to cure such failures after receiving written notice and a reasonable opportunity to cure, which cannot exceed 30 days [p.5; p.247].
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 financial requirement details such as net worth or liquid capital for franchise qualification. However, it does mention that if the franchisor's most recent financial statements are unaudited and show a net worth of less than $100,000, you may request escrow arrangements for your initial investment until certain obligations are fulfilled [p.248].
Do I get an exclusive or protected territory?
You do not receive an exclusive territory [p.37]. However, during the term of the Franchise Agreement, provided you comply with your obligations, Famous Toastery will not establish another restaurant in your designated territory [p.37]. This isn't specified in the excerpts.
What training and ongoing support does the franchisor provide?
The franchisor provides initial training through a structured program that may include classroom and on-the-job instruction, as well as remote online web-based conferencing. Franchisees are responsible for ongoing training of their employees according to the franchisor's standards [p.131]. Additionally, the franchisor may offer supplemental training at the franchisee’s location or remotely upon approval, with associated fees [p.132].
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 make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets [p.53]. However, if you are purchasing an existing outlet, the franchisor may provide actual records of that outlet's performance [p.53]. The franchisor can also provide financial performance information if there is a reasonable basis for it and it is included in the Disclosure Document [p.49], but any additional financial performance information must be based on actual records of an existing outlet you are considering buying or by supplementing the information provided in Item 19 under specific circumstances [p.49].
What am I restricted to selling, and where must I buy supplies?
You are required to exclusively offer and serve the Approved Services and Products, prepare and serve them in accordance with the System's standards and specifications, and purchase and use only System Supplies from designated suppliers, including those that may be exclusive. You must also purchase or lease materials, ingredients, goods, and supplies used in your operations from distributors and other suppliers approved by the franchisor [p.141]. This typically represents about 80% of your initial purchases and around 50% of ongoing operating expenses [p.24].