Home Frite
Home Frite offers fast-casual restaurants serving fries, burgers, chicken, milkshakes, and beverages with sit-down and takeout options. Known for quick service and variety, it operates in the casual dining sector.
Home Frite franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin the operation of a Home Frite® franchise ranges from $351,000 to $505,500. This includes an initial franchise fee of $35,000 and $10,000 for grand opening marketing expenses that must be paid to the franchisor [p.1]. For area development franchises, the range is from $383,500 to $563,000, which includes higher initial franchise fees and area development fees credited against initial franchise fees at the time they become due for each franchise to be developed [p.1].
What is the initial franchise fee?
The initial franchise fee varies based on the number of franchises. For the first franchise, it is $35,000 [p.11, p.86]. For the second and third franchises, it is $32,500 in total, with $16,250 due upon signing the ADA and the remaining $16,250 when signing the franchise agreement for these additional units [p.11]. For each subsequent franchise beyond the third, the fee is $25,000 in total, with $12,500 due upon signing the ADA and the remainder when signing the respective franchise agreement [p.11]. This isn't specified in the excerpts for any other specific number of franchises beyond these examples.
What are the ongoing royalty and advertising fees?
The FDD excerpts do not specify ongoing royalty or advertising fees directly. However, it does mention that franchisees are required to spend $10,000 on Grand Opening Marketing without any contribution from the franchisor [p.40]. Additionally, there is no current requirement for an advertising cooperative, but Franchisor reserves the right to establish one in the future [p.121]. Therefore, based on the provided information, specific ongoing royalty and advertising fees are not detailed.
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement's term length isn't specified in these excerpts. However, you have the right to enter into an unlimited number of consecutive successor agreements for a successive term of ten years each, provided certain conditions are met at the time of renewal [p.83].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, if you wish to sell or transfer your franchise, you must obtain consent from the Franchisor. This includes selling or transferring the area development agreement, the area development franchise, franchised businesses, or a significant portion of Area Developer's assets [p.229]. Additionally, any potential transferee must meet certain financial and experience requirements as outlined by the Franchisor [p.226].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on various grounds including changes in the business model without your consent [p.3], failure to open within ten months [p.42], engaging in activities that constitute immediate termination [p.232(g)], or if there is a reasonable cause as defined by law [p.306]. This isn't specified in the excerpts for all possible grounds, but these are some of the key ones mentioned.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does mention the need for sufficient business experience, aptitude, and financial resources [p.226, p.131], but it does not provide specific details on net worth or liquid capital requirements for qualifying as a franchisee.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. The franchise agreement does not provide an exclusive area where only you can operate; instead, you may face competition from other franchisees, company-owned outlets, and competitive brands controlled by the franchisor [p.48]. However, if you enter into an Area Development Agreement (ADA), Home Frite will agree not to grant another franchise or open a company- or affiliate-owned restaurant in your designated territory [p.48], though the size and population of this territory are not specified.
What training and ongoing support does the franchisor provide?
The franchisor provides initial training that includes two weeks of classroom and on-the-job training at their offices or another location chosen by them. This is followed by up to two additional weeks of local restaurant training, split into pre-opening and post-opening phases. Ongoing support may involve a help desk for hardware and software issues, though availability can be limited. The franchisor also plans to conduct periodic initial training programs as they see fit. [p.44, p.45, p.47]
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor can provide financial performance information if there is a reasonable basis for it and it is included in the disclosure document [p.65]. However, the franchisor does not make any representations about future financial performance of franchises or company-owned outlets, nor do they authorize their employees to make such representations [p.67].
What am I restricted to selling, and where must I buy supplies?
You are required to sell and offer for sale all goods, products, and services as specified by the franchisor [p.98]. You may only sell items authorized by the franchisor [p.3] and must use ingredients specified by them and adhere to their standards and specifications without deviation unless written consent is obtained first [p.24]. You are generally required to purchase certain goods, services, supplies, materials, equipment, promotional materials, and other products necessary to operate the franchise exclusively from suppliers designated or approved by the franchisor, which may include the franchisor and its affiliates [p.98, p.79]. The franchisor has discretion to revise the list of approved suppliers and may limit sources for certain required items [p.98, p.3].