Fords Garage
Fords Garage offers a unique dining experience combining prime burgers, craft beers, and a 1920s-themed atmosphere with old-style decor. Known for its full menu, bar, and vibrant ambiance, this franchise is part of the casual dining restaurant sector.
Fords Garage franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of a new Ford's Garage franchise ranges from $3,703,800 to $6,618,000. This includes the $50,000 franchise fee paid to the franchisor or its affiliates. [p.1]
What is the initial franchise fee?
The initial franchise fee is $50,000 and it is deemed fully earned upon execution of the Agreement. This fee is nonrefundable [p.106].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee typically ranges from 2% to 5% of Gross Sales. Additionally, franchisees are required to pay Marketing Fund Contributions at a rate of 1.25% of Gross Sales during the 2022 and 2023 calendar years, and 1% of Gross Sales during the 2024 calendar year [p.88].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement typically lasts for 10 years [p.310]. The excerpts do not specify whether the agreement can be renewed or provide details on renewal terms.
Can I sell or transfer my franchise, and what does that require?
To sell or transfer your franchise, you must first notify the franchisor of your desire to do so along with the price and terms (the 'Offer'). The franchisor may refuse based on good cause, which includes but is not limited to unspecified criteria. [p.372] Additionally, you need to obtain approval from the franchisor for any replacement Designated Manager if applicable. [p.60]
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.376]. Additionally, the franchisor has the right to terminate for cause 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.372].
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?
You do not receive an exclusive territory, but you are granted a protected territory within a Designated Market Area (DMA). This means that while you have the right to operate your franchise within the DMA without competition from other Ford's Garage locations owned by the franchisor or its affiliates, the franchisor retains the right to compete through other channels and may establish outlets in nearby areas. [p.49, p.52, p.104]
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program for the franchisee and their personnel, including the Designated Manager, Restaurant Manager (if different), and up to five other managers. This training is held at headquarters in Tampa, Florida, or a designated certified training center and includes both classroom and on-the-job instruction on topics selected by the franchisor. Training must be completed to the franchisor's satisfaction before operating the restaurant. The program can vary based on individual experience [p.49].
How many franchised outlets are there, and how many have closed or been terminated?
The FDD indicates that as of December 31, 2024, there were 30 franchisee locations [p.306]. However, this information does not specify the number of closed or terminated outlets. 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 the past financial performance of company-owned or franchised outlets [p.89]. However, if an existing outlet is being purchased, actual records of that outlet may be provided upon request [p.89]. Financial performance information can only be given under specific conditions as outlined in the FDD [p.79], and written substantiation will be made available upon reasonable request [p.80].
What am I restricted to selling, and where must I buy supplies?
You are required to sell only those menu items, ingredients, products, services, materials, supplies, and paper goods that the franchisor designates as part of the Ford's Garage Restaurant System [p.62]. You must purchase or lease these items from the franchisor or a limited group of suppliers designated by them, which may be more expensive than other options [p.3]. Additionally, you are not allowed to offer for sale any products or services that the franchisor has not approved [p.142]. The franchisor can revoke approval at any time and you must cease using or selling such items promptly [p.142].