Mighty Quinns
Mighty Quinn's Barbeque offers fast-casual smoked barbeque restaurants with authentic flavors. Known for its robust menu and development opportunities, it operates in the competitive quick-service restaurant sector.
Mighty Quinns franchise FAQ
How much does it cost to open one — the total initial investment?
The estimated initial investment necessary to begin operation of a Restaurant, which is a Flagship Location under a Franchise Agreement, ranges from $739,488 to $896,334. This includes $45,000 that you must pay to the franchisor or its affiliates [p.1].
What is the initial franchise fee?
The initial franchise fee is $45,000 and must be paid upon execution of the applicable Franchise Agreement for the first Development Restaurant. For subsequent Development Restaurants, the initial franchise fee is $20,000 per restaurant [p.231, p.232].
What are the ongoing royalty and advertising fees?
The franchisee must pay a royalty fee based on a percentage of their weekly gross sales, which is recognized as revenue when earned at a point in time [p.93]. Additionally, there is an annual conference attendance fee and monthly technology fees that also are recognized as revenue when earned at a point in time [p.93]. Advertising costs are expensed as incurred [p.80].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement and renewal options are not specified in these excerpts. This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires the franchisor's approval. The franchisor may refuse to permit a transfer except for good cause, which includes but is not limited to unspecified criteria [p.251]. Additionally, the proposed transferee must meet certain standards regarding moral character, business experience, financial resources, and cannot own or operate a competitive business [p.159].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on grounds of reasonable cause, which includes the franchisee's failure to comply with any lawful provision of the Franchise Agreement and failing to cure such failure within a reasonable time frame, not exceeding 30 days [p.5, p.254, p.256]. This is subject to Virginia Retail Franchising Act requirements [p.256].
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 qualifying as a franchisee. However, if the franchisor's most recent financial statements are unaudited and show a net worth of less than $100,000.00, you may request that initial investment and other funds paid be escrowed until obligations to provide real estate, improvements, equipment, inventory, training, or other items included in the franchise offering are fulfilled [p.251]. Additionally, maintaining sufficient working capital is required at all times to fulfill obligations under the agreement [p.149].
Do I get an exclusive or protected territory?
You do not receive an exclusive territory, but you are protected from competition by Mighty Quinn's Franchising, LLC within your Designated Territory. The company will not establish another franchisee's restaurant in your designated area unless you are in default of your obligations [p.36].
What training and ongoing support does the franchisor provide?
The franchisor provides a comprehensive initial Training Program for the franchisee, including both classroom and on-the-job instruction. This program must be completed by the Managing Owner and other designated personnel before opening the Franchised Business [p.135]. Additionally, the franchisor offers ongoing training to ensure compliance with its standards, which may include interactive Webinar sessions and on-site training at a designated location [p.135].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts. The provided FDD focuses on company-owned outlets rather than franchised outlets, and it does not mention any closures or terminations of franchised outlets.
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets [p.54]. However, if you are purchasing an existing outlet, the franchisor may provide actual records of that specific outlet [p.54]. Additionally, the franchisor can provide financial performance information if there is a reasonable basis for it and it is included in the Disclosure Document [p.49].
What am I restricted to selling, and where must I buy supplies?
You are required to exclusively offer and serve the Approved Products and Services as specified by the franchisor. Additionally, you must purchase and utilize System Supplies from the franchisor or its designated suppliers [p.146]. This includes equipment, supplies, promotional materials, point of sale systems, and Business Management Systems that are designated by the franchisor and subject to their specifications [p.3].