Hickory River Smokehouse
Hickory River Smokehouse offers Texas-style barbecue in family-oriented restaurants. Known for its rich smokehouse tradition, it provides franchises for single restaurant operations, with significant initial investment required. Part of the broader casual dining and barbecue franchise sector.
Hickory River Smokehouse franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operations of a Hickory River Smokehouse restaurant franchise in an existing restaurant space ranges from $315,000 to $674,500 [p.1]. For an empty space not previously used as a restaurant, the range is from $804,000 to $1,084,500 [p.1].
What is the initial franchise fee?
The initial franchise fee is a nonrefundable amount of $30,000, which must be paid in full on the date the agreement is signed [p.113]. This fee is earned upon receipt and compensates the franchisor for its expenses and services provided [p.113].
What are the ongoing royalty and advertising fees?
The franchisee is required to pay a franchise fee and a marketing fee at rates of 4% and 3%, respectively, of restaurant sales. These fees are remitted electronically to a third-party service provider daily [p.85].
How long is the initial franchise agreement, and can I renew it?
The length of the initial franchise agreement isn't specified in the excerpts. However, the franchisor generally allows franchisees to renew their agreements upon expiration, subject to approval and payment of a renewal fee [p.73, p.55].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise. However, you first need to offer your interest in the franchise to the franchisor under certain conditions, such as a change in control of the franchisee or insolvency. If the franchisor does not accept the offer, then you may proceed with transferring to a third party. The terms and purchase price for such transfers are typically determined by mutual agreement or through an appraiser if the parties cannot agree [p.120]. Additionally, the assignee must meet the franchisor's current requirements and agree to execute the current form of Franchise Agreement and related agreements [p.119].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if there is a material misrepresentation or omission in your franchise application, or if you voluntarily abandon the agreement. These are specified on [p.122].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does mention working capital requirements, stating you must have a minimum of $30,000 in immediately accessible working capital funds at the time of opening [p.12, p.15]. However, it does not provide details on net worth or liquid capital needed to qualify as a franchisee.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, or other channels of distribution or competitive brands that the company controls or is affiliated with [p.27]. The company retains the right to develop or franchise competing restaurants in your designated area using certain trademarks [p.140], and you are not guaranteed continuation of your Designated Area based on sales volume or market penetration [p.28].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training before the restaurant opens, which is included in the Initial Franchise Fee for up to three people [p.26]. Ongoing training may be required at a designated location, with travel costs covered by the franchisee [p.111]. Refresher training programs are also available but require the franchisee to cover travel and living expenses [p.27]. The franchisor may designate a management company or other agent for support services [p.97], and there is potential competition from the franchisor in the territory granted [p.3].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts. The FDD does not provide a specific number of franchised outlets or those that have closed or been terminated. [p.27] mentions potential competition but does not give current franchisee numbers, while [p.36] provides a list of terminated franchises as of December 31, 2024, but the exact count is not stated.
Does the franchisor share any financial performance or earnings information?
The franchisor shares financial performance information based on actual records from existing outlets. According to [p.33], this information is derived from six franchised Hickory River Smokehouse® Restaurants open for entire fiscal years, and it may be supplemented under specific conditions. However, the franchisor does not make any representations about future or past financial performance of franchises or company-owned outlets, nor do they authorize their employees to make such representations [p.34].
What am I restricted to selling, and where must I buy supplies?
You are not specifically restricted to selling only certain items, but you may have to buy or lease some items from the franchisor or a limited group of suppliers they designate, which could be more expensive than purchasing them independently [p.3]. Additionally, soft drinks must be bought from an Approved Supplier designated by the franchisor [p.17], and all sales promotion materials and certain customer convenience items need to be approved by the franchisor [p.107].