Great Steak
Great Steak franchises offer Philadelphia cheesesteaks, hamburgers, and baked potatoes in fast-food restaurants. Known for classic American comfort food, this franchise requires an initial investment of $153,500 to $662,850. Operates in the quick-service restaurant industry.
Great Steak franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment for opening a Great Steak restaurant can vary widely depending on several factors. For non-traditional locations, the initial fees range from $15,500 to $32,500, and for traditional locations, the range is from $30,500 to $60,000. These amounts do not include the cost of leasehold improvements or real estate if you need to purchase land. The total initial investment can also be influenced by the size and condition of the premises, location, and other specific requirements such as construction costs and POS system expenses. [p.31, p.41, p.58]
What is the initial franchise fee?
The initial franchise fee varies based on the type of restaurant. For traditional Great Steak restaurants, it is $30,000 for the first location and $17,500 for each subsequent one. For non-traditional Great Steak restaurants, including co-brand locations, the initial franchise fee is $7,500 for the first location and $5,000 for each additional one. [p.31, p.367, p.371]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is six percent (6%) of total Gross Sales, while the advertising fee is not specified in terms of a percentage but is collected alongside the Royalty Fee. These fees are payable weekly from the later of the Effective Date or the date the Franchised Business opens to the public and continue for the duration of the Term [p.371].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD excerpts do not mention the duration of the initial franchise agreement or details about renewal terms beyond the requirement to pay a 50% renewal franchise fee when renewing the agreement [p.303, p.169, p.321].
Can I sell or transfer my franchise, and what does that require?
You can sell or transfer your franchise, but it requires good cause as determined by the franchisor. The franchisor may also exercise a right of first refusal to purchase the franchise instead. [p.93, p.466]
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement for good cause, which includes failure to comply with lawful material provisions of the franchise agreement and not curing such defaults within a reasonable time [p.107]. Additionally, termination is permissible if the franchisee is adjudicated bankrupt, makes an assignment for the benefit of creditors, voluntarily abandons the business, or is convicted of a relevant crime [p.107].
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?
No, you do not receive an exclusive territory. According to the FDD excerpts, [p.59] states that you may face competition from other franchisees, from restaurants owned by the franchisor, or from other channels of distribution or competitive brands controlled by them. This is further supported by [p.483], which explicitly mentions that no exclusive territory is provided to the franchisee.
What training and ongoing support does the franchisor provide?
The franchisor provides a Training Program consisting of In-Store Training and New Owner Training, each approximately 40 hours. This program is conducted either online or at the franchisor’s training center in Scottsdale, Arizona, or another location chosen by the franchisor. Additionally, the franchisor reserves the right to require further training if the franchisee does not meet the system standards. [p.229, p.162, p.296]
How many franchised outlets are there, and how many have closed or been terminated?
As of November 30, 2024, there were 24 franchised stores open in the United States. This number does not specify how many have closed or been terminated; it only indicates that out of these 24 outlets, none were temporarily closed for more than half of the fiscal year and all are still operating as of the date mentioned. [p.75]
Does the franchisor share any financial performance or earnings information?
The franchisor can provide actual records of an existing outlet if you are purchasing one, but generally does not make any financial performance representations [p.76]. However, they may include such information in the disclosure document if there is a reasonable basis for it and it meets certain conditions [p.75].
What am I restricted to selling, and where must I buy supplies?
You are not restricted to selling only certain items; however, you may have to purchase or lease specific items from suppliers designated by the franchisor. These items might be more expensive than those available elsewhere [p.3]. For equipment, supplies, or inventory items required by the System Standards that were not previously approved by the franchisor, you must submit sufficient information for approval and can only use suppliers approved by the franchisor unless they are disapproved after inspection [p.313, p.179].