Farmer Boys
Farmer Boys operates fast-casual restaurants in California, specializing in breakfast and lunch items. Known for its unique menu offerings, the brand requires a significant investment of between $1,056,000 to $2,610,000. Part of the broader quick-service restaurant industry.
About Farmer Boys
Farmer Boys is a fast casual chain that operates primarily in California. Its headquarters are located in Riverside, California.
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Farmer Boys franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Farmer Boys franchise is between $1,056,000 and $2,610,000 [p.1]. This range includes various costs such as construction, equipment, and other expenses but does not include the cost of purchasing land for the restaurant, which can vary significantly by market.
What is the initial franchise fee?
The initial franchise fee is $45,000 for the first franchise and $35,000 for each subsequent franchise, unless purchased under an Area Development Agreement [p.17].
What are the ongoing royalty and advertising fees?
The ongoing royalty is 5% of the franchisee's Adjusted Gross Revenue each week [p.67]. Franchisees are required to contribute weekly advertising fees, though the exact rate is determined by individual agreements [p.295, p.315, p.333]. These fees support promotional marketing and advertising for the Farmer Boys brand, with usage controlled by the company [p.295, p.315, p.333].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement term is typically 20 years [p.387], and a franchisee may generally renew their agreement upon its expiration, subject to the company's approval and payment of a renewal fee [p.315]. However, if you do not comply with your development timeline for opening restaurants, your franchise rights may be terminated [p.387].
Can I sell or transfer my franchise, and what does that require?
This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
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 franchisees. However, it indicates that the company will evaluate Franchisee's overall capacity based on a comprehensive management plan submission, which may include financial criteria [p.151].
Do I get an exclusive or protected territory?
Based on the excerpts, you do not receive an exclusive territory. The franchise agreement is non-exclusive [p.146], meaning your development area may overlap with other franchisees' territories and you can face competition from other FARMER BOYS® outlets or competitive brands controlled by the franchisor [p.30]. This isn't specified in the excerpts.
What training and ongoing support does the franchisor provide?
The franchisor provides an Initial Training Program that is customized based on pre-existing knowledge and experience. This program can be reduced in duration for participants in the Low Investment Program. Ongoing, the franchisor may require attendance at additional training courses or programs up to twice a year, not exceeding three days each time, which may include topics like product production techniques, new recipes, marketing, bookkeeping, accounting, and operating procedures. The franchisor also has the right to conduct training programs in the franchisee's restaurant from time to time. Mandatory attendance is required, with incidental expenses borne by the franchisee [p.27, p.75].
How many franchised outlets are there, and how many have closed or been terminated?
As of January 28, 2024, there were 71 franchised restaurants. According to [p.50], no franchise agreements were terminated, canceled, not renewed, or reasonably known to the company to have ceased doing business during the past year, nor had any franchisees failed to communicate with them within 10 weeks of the date of this Disclosure Document.
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor shares financial performance information for the U.S. combined system-wide, Affiliate-operated, and Franchisee-operated Restaurants. This information is provided for the fiscal year ended January 28, 2024, reflecting average 'Net Sales' of restaurants open at least 18 months as of that date [p.46]. However, the franchisor does not make any representations about a franchisee's future financial performance or past financial performance of company-owned or franchised outlets, and such information should be independently verified [p.50].
What am I restricted to selling, and where must I buy supplies?
You are required to buy all food products, employee uniforms, and dry goods from approved or designated suppliers as per page [p.18]. Additionally, you may need to lease or purchase certain items from the franchisor or a limited group of suppliers they designate, which might be more expensive than other options (page [p.3]). Regarding sales, you must operate only at the Approved Location and are restricted from accepting orders outside this location except as permitted by written policies; delivery services or catering require prior written consent from the franchisor (pages [p.30]).