Kekes Breakfast Cafe
Kekes Breakfast Cafe offers made-to-order breakfast and lunch items through Keke's Restaurants, known for signature dishes like Home Fries and Stuffed French Toast, in the competitive quick-service dining industry.
Kekes Breakfast Cafe franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to establish one Keke's Restaurant ranges from $622,825 to $1,887,313. This includes an initial franchise fee of $30,000, grand opening advertising of up to $7,500, and location assistance of $500 [p.1].
What is the initial franchise fee?
The initial franchise fee is $30,000 for establishing a single restaurant under a Franchise Agreement [p.14, p.93]. This fee must be paid in full upon signing the Franchise Agreement and is non-refundable except in specific circumstances related to location failure or training program completion [p.14].
What are the ongoing royalty and advertising fees?
Ongoing royalty and advertising fees are based on sales revenues from Denny's franchised restaurants. The Company earns a 1.0% to 7.0% royalty fee and a 0% to 3.25% advertising fee on these revenues [p.73]. These fees represent variable consideration related to the Company’s performance obligation to maintain intellectual property licensing [p.73].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement isn't specified in these excerpts. Additionally, this isn't specified either, but the FDD does mention that a provision exists allowing the franchisor to refuse to renew the franchise without compensating you for certain items [p.337].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause [p.338]. Good cause includes but is not limited to unspecified factors. Therefore, you cannot freely sell or transfer your franchise without the franchisor's approval, which may be granted or denied based on their discretion and the reasons provided.
On what grounds can the franchisor terminate the agreement?
According to [p.342], the franchisor can terminate the agreement on any grounds available by law. Additionally, [p.337] states that a franchisor can terminate a franchise prior to expiration for good cause, which includes failure to comply with lawful provisions of the franchise agreement and not curing such failure within a reasonable time frame (no more than 30 days). This information is subject to the Virginia Retail Franchising Act, where terminating a franchise without reasonable cause is unlawful ([p.345], [p.378], [p.377]).
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD sections focus on the requirement for Franchisees to provide recent financial statements and maintain sufficient working capital, but they do not detail specific net worth or liquid capital requirements.
Do I get an exclusive or protected territory?
You may receive exclusive development rights under a Development Agreement, but these are subject to certain conditions and exclusions. For instance, you might have an exclusive agreement to develop and open a specified number of restaurants within a designated geographical area (Territory), but Keke's retains the right to operate or license others in specific areas like metropolitan zones, high traffic locations, and non-traditional sites near your Territory. Additionally, your Franchise Agreement may specify a Designated Territory for an Accepted Location, though this is not always granted, especially if the site is in a Non-Traditional Site or a major metropolitan area. [p.41, p.43, p.259]
What training and ongoing support does the franchisor provide?
The franchisor provides initial training for you or your appointed operator, the General Manager, and one additional employee. This training is conducted at corporate headquarters or a company-owned Restaurant in Florida, or another location designated by the franchisor. The franchisor may also offer refresher training programs or an annual meeting, though attendance can be mandatory. Additionally, ongoing support includes administration of advertising programs and other ongoing support functions, which are considered part of the single performance obligation under franchise agreements. [p.73]
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, KFO, LLC, does not make any financial performance representations except in specific circumstances. If you are purchasing an existing outlet, they may provide actual records of that outlet's performance [p.57]. Additionally, written substantiation for such a representation can be provided upon reasonable request [p.57].
What am I restricted to selling, and where must I buy supplies?
You are restricted from engaging in certain promotional activities or selling proprietary products through the Internet, Electronic Media, catalogs, telecopy, or other similar means. You also cannot sell products directly or indirectly outside your Designated Territory unless there is no other Keke's Restaurant in the area. Regarding supplies, you must obtain all food and beverage items, ingredients, supplies, materials, fixtures, furnishings, equipment, and other products from suppliers approved by the franchisor, as their evaluation criteria are not disclosed to you or any supplier [p.25].