Johnny Rockets
Johnny Rockets is a hamburger restaurant franchise known for its classic American diner-style food and retro decor. Operating in the quick-service dining industry, it offers franchises with an initial investment range of $517,300 to $2,667,900.
About Johnny Rockets
The Johnny Rockets Group Inc., commonly known simply as Johnny Rockets, is an American restaurant franchise whose themed decor is based upon 1950s diner-style restaurants. As of April 2024, the company operates 90 locations in Arizona, California, Connecticut, Washington, D.C., Florida, Georgia, Hawaii, Illinois, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Missouri, Nevada, New Jersey, New York, Pennsylvania, Rhode Island, Tennessee, Texas, Utah, Virginia, and Washington. Décor includes Coca-Cola advertising, featuring nearly life-sized cardboard illustrations of women in World War II armed services uniforms, individual jukebox stations, chrome accents, and red vinyl seats.
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Johnny Rockets franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment necessary to begin operation of one Restaurant ranges from $517,300 to $2,667,900 (see [p.1]). This includes an initial fee in the amount of $50,000 per Restaurant that must be paid to the franchisor (see Item 5).
What is the initial franchise fee?
The initial franchise fee is currently set at $50,000 and must be paid immediately upon execution of the Franchise Agreement [p.20, p.98]. This fee is non-refundable [p.98].
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.98]. For advertising contributions, while not explicitly stated in these excerpts, it can be inferred that there are such fees since they are part of the franchise agreement and operations, but specific percentages or amounts are not provided 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.239]. This means you can typically renew your agreement annually, but it's important to check the specific notice requirements and conditions for renewal as outlined in the FDD [p.97] and other sections.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit a transfer of ownership of a franchise except for good cause [p.5]. Good cause includes but is not limited to unspecified factors. Therefore, you would need to check with your franchisor regarding any specific requirements or restrictions on selling or transferring your franchise [p.211].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.277]. However, under Virginia law, termination without reasonable cause is unlawful [p.283], and good cause for termination includes a franchisee's failure to comply with lawful provisions of the franchise agreement after being given notice and a reasonable opportunity to cure [p.5].
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?
Based on the excerpts provided, you do not receive an exclusive territory. You will have a protected territory as described in your Franchise Agreement, but this protection is subject to various conditions and exceptions [p.52, p.49]. The size of the Protected Territory can vary depending on factors such as population density and property type [p.51], and it cannot be modified during the term of your Franchise Agreement [p.51]. However, you may face competition from other franchisees, outlets owned by the company, or other channels of distribution or competitive brands controlled by the company [p.52, p.49, p.178].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training programs for both executive and management personnel [p.43, p.103], including instructors and most of the training materials. Ongoing support includes quarterly training and status meetings at the franchisor's option, as well as additional training programs and seminars that may be required from time to time [p.103]. For all such trainings, the franchisee is responsible for arranging and paying for transportation, lodging, meals, and any wages of participants [p.43, p.103].
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 if there is a reasonable basis for it and it is included in the disclosure document [p.68]. However, they do not make any financial performance representations other than those specified, nor authorize their employees or representatives to make such representations [p.71].
What am I restricted to selling, and where must I buy supplies?
You are required to sell only the menu items, products, and services that the franchisor has approved [p.35]. Additionally, you must purchase merchandise from suppliers designated by the franchisor [p.107], and you may need to obtain prior written approval before selling certain items or alcoholic beverages [p.107].