Great Wraps
Great Wraps operates fast food sandwich restaurants under the names "Great Wraps," "GW Gyro & Wings," or "Gyro Wrap." Known for their wraps and gyro wings, this franchise falls within the quick-service restaurant sector.
About Great Wraps
Great Wraps is an American quick serve restaurant founded in 1974 with 29 locations in 9 states and Washington, D.C., primarily in airports. Its menu consists of hot, wrapped sandwiches, cheesesteaks, rice bowls and frozen smoothies.
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Great Wraps franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of a Great Wraps franchise ranges from $269,650 to $563,700. This includes an initial franchise fee of $24,000 that must be paid to the franchisor and affiliate [p.1].
What is the initial franchise fee?
The initial franchise fee varies based on the location type: $24,000 for streetside or mall locations and $7,500 for airport locations [p.11]. If you sign an Area Development Agreement, you pay all initial franchise fees upfront at the time of signing for the units you agree to open, and these fees are not refundable [p.11, p.133].
What are the ongoing royalty and advertising fees?
The franchisee must pay a Brand Development Royalty of 0.5% of net sales each week [p.21, p.58]. Additionally, upon achieving certain store counts or as deemed appropriate by the franchisor, the franchisee may be required to contribute up to 3% of net sales for regional or national advertising [p.72].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to [p.88], you cannot assign, sell, or otherwise transfer your franchise without the prior written consent of the franchisor, except in cases where a transfer fee equal to 50% of the Initial Franchise Fee is paid. For transfers involving more than 25% ownership, this requirement still applies. Additionally, [p.18] states that good cause can be determined by the franchisor and may include specific criteria. This isn't specified in the excerpts for area development agreements specifically.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.118]. Additionally, the franchisor may terminate the franchise agreement if the franchisee fails to comply with lawful provisions of the franchise agreement and does not cure such failure within a reasonable time frame after being given written notice [p.5(c)].
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?
For a Cafe style restaurant in a storefront location, you will receive a protected territory where Franchisor will not open another Great Wraps location during the term of your agreement, provided you comply with all obligations [p.66]. However, for locations in shopping malls or non-traditional venues, you do not get an exclusive territory and may face competition from other franchisees or outlets owned by the franchisor [p.26].
What training and ongoing support does the franchisor provide?
The franchisor provides a mandatory initial training program, which includes up to three weeks of training and written examinations, held in Atlanta, Georgia, or at designated locations [p.23, p.74]. This training is led by Chris Bewley, who oversees new store openings, ongoing training, and support [p.28]. Additionally, the franchisor offers on-going brand support through a royalty of 0.5% of net sales for the first three months after opening, excluding airport locations, with this funding used for various marketing and administrative purposes [p.71]. Ongoing royalties of 5.5% of gross sales are also required to continue brand development and provide ongoing support for franchisees [p.58].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts. The provided FDD excerpts do not contain information about the current number of operating outlets or the number that have closed or been terminated.
Does the franchisor share any financial performance or earnings information?
The franchisor can provide financial performance information about actual or potential outlets under certain conditions, such as providing actual records of an existing outlet being considered for purchase or supplementing the information provided in Item 19 with possible performance details. However, 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.36, p.37].
What am I restricted to selling, and where must I buy supplies?
You are restricted to generating sales from the franchise location only, and may not open or operate another Great Wraps Restaurant without express written authorization [p.29]. You must purchase all food, paper, and other products and services used in the Franchise Location from suppliers specifically designated by the Franchisor, which may include the Franchisor itself [p.76].