Hurricane Grill
Hurricane Grill & Wings offers friendly neighborhood restaurants focusing on fresh chicken wings in various flavors, along with other menu items. Known for its wing specialties, this brand operates in the quick-service restaurant sector.
Hurricane Grill franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to open one Hurricane Grill & Wings Restaurant ranges from $854,200 to $2,940,600 or for a BTW Restaurant, it ranges from $539,100 to $1,192,000. This includes an initial fee of $65,000 that must be paid to the franchisor or its affiliates [p.1].
What is the initial franchise fee?
The initial franchise fee is $50,000 for the first Restaurant and each subsequent Restaurant. However, this fee can be adjusted if a Multi Unit Restaurant Agreement or an Area Development Agreement is signed [p.30]. For co-branded 'Hurricane' restaurants within Fatburger / Johnny Rockets locations, the initial fee is $25,000 (with possible waiver for certain cases) [p.34].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is calculated as a percentage of Net Sales, specifically the Royalty Rate multiplied by the Net Sales of the Restaurant [p.104]. For advertising contributions, while not explicitly stated in the provided excerpts, it can be inferred that there are such fees since they are part of the franchise agreement and the fund is used for advertising purposes [p.54], but specific percentages or amounts are not detailed here.
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement automatically renews for successive one-year terms unless either party provides written notice of non-renewal at least 60 days prior to the then-current term's expiration [p.267]. Renewal is subject to the terms and conditions specified in the agreement, including compliance with training requirements that may have changed since your original agreement [p.48].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can sell or transfer your rights under the Franchise Agreement to a third party [p.263]. However, this process is not detailed in the provided excerpts, so for specific requirements, you would need to refer to the full document or contact the franchisor directly.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.339]. Additionally, under Virginia law, a franchisor cannot cancel a franchise without reasonable cause, as defined in Section 13.1-564 of the Virginia Retail Franchising Act or Virginia laws [p.345]. The franchisor also has the right to terminate the advertising and marketing fund if all monies have been spent appropriately or returned to contributors [p.54], and can terminate any agreement for any cause at its option [p.132].
What financial requirements — net worth and liquid capital — do I need to qualify?
The FDD does not specify exact net worth or liquid capital requirements for qualification [p.192]. However, you must demonstrate to the franchisor your financial and other capacity to perform under the franchise agreement in their discretion [p.192]. This is evaluated using criteria similar to those applied to other prospective applicants at that time [p.192].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You will have a protected territory described in your Franchise Agreement, but this may vary based on factors like population density. You may face competition from other franchisees, outlets owned by the company, or other competitive brands [p.59].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training programs at their certified training center, including both manager and executive training [p.109]. Additionally, they offer ongoing training and seminars as needed [p.110], which may be conducted in person or through various digital means. Franchisees are responsible for covering expenses related to these trainings other than the provision of instructors and materials [p.110].
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 may provide financial performance information, but only under specific conditions. According to [p.76], such information can be included if there is a reasonable basis for it and if it is disclosed in the disclosure document. Additionally, [p.80] states that written substantiation for any financial performance representation will be made available upon request. However, this isn't specified in all cases, as [p.80] also notes that other than certain representations, no financial performance representations are authorized by the franchisor or its representatives.
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the menu items, approved sizes, products, and services that the franchisor has approved. You must purchase merchandise from suppliers designated by the franchisor [p.4, p.64]. This includes using specific seasonings and food products as required [p.64], and discontinuing any unauthorized menu items immediately upon disapproval in writing [p.64].