Modern Market Eatery
Modern Market Eatery offers premium fast casual dining with a menu of freshly prepared sandwiches, salads, and more. Known for its quality food and development opportunities, it operates in the competitive restaurant sector.
Modern Market Eatery franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a single Modern Market Eatery restaurant ranges from $928,500 to $1,468,750. This includes an initial franchise fee and site assistance fee of $40,000 to $40,500 [p.1].
What is the initial franchise fee?
The initial franchise fee is $40,000. This fee is non-refundable and must be paid in full when you sign this Agreement [p.106].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of the Gross Sales of the Restaurant, due weekly [p.106]. Advertising fees are not specified as a separate ongoing payment in the provided excerpts; however, earnings from sales of certain materials to franchisees may be deposited into the Brand Fund, which can be used for advertising and marketing activities [p.38, p.121].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is for ten (10) years from the Opening Date [p.101]. You have the right to seek a renewal franchise agreement for additional terms, which are detailed in Section 18 of the agreement [p.47].
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.211]. Good cause includes but is not limited to unspecified reasons, which may allow the franchisor some discretion in approving or denying transfers.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice and a reasonable opportunity to do so [p.211]. Additionally, termination without 'reasonable cause' as defined by Virginia law may not be enforceable [p.231].
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?
No, you do not receive an exclusive territory under either the Franchise Agreement or the Development Agreement. Your operations are subject to potential competition from other franchisees and outlets controlled by the company within a specified radius, and the company has no obligation to compensate you for such competition [p.41, p.42, p.43].
What training and ongoing support does the franchisor provide?
The franchisor provides initial opening training that includes on-site training for managers and staff members, as well as additional support with opening management and activities [p.36]. This assistance is provided free of charge but can incur a reasonable fee if additional support beyond 11 consecutive days is requested or deemed necessary by the franchisor. The franchisor also offers ongoing training programs that must be approved in advance and are designed to be at least equal to their own, with periodic reviews to ensure quality [p.35, p.36].
How many franchised outlets are there, and how many have closed or been terminated?
According to the FDD excerpt on page [p.54], Table 1 includes financial performance representations for all 3 franchised restaurants that were open and operating for at least one year as of October 1, 2023, and had not been closed more than 7 operating days in the trailing twelve months. There is no specific mention of any outlets that have closed or been terminated within the provided excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor, Modern Market Franchising, LLC, does not make any financial performance representations except for providing actual records of an existing outlet if you are purchasing one. Historical actual financial performance representations are only provided for all 3 franchised restaurants that were open and operating for at least a year in the trailing twelve months ended October 1, 2023. [p.58, p.54]
What am I restricted to selling, and where must I buy supplies?
You are required to purchase specific furnishings, fixtures, and equipment from approved suppliers, which may include the franchisor or an affiliate [p.25]. Additionally, you must buy Proprietary Items only from a Designated Supplier and not offer or sell items similar to these Proprietary Items at or from the Restaurant [p.113]. In terms of sales, you are restricted to selling products or services directly to retail guests for consumption on the Restaurant premises or for personal carry-out consumption; you may not engage in grey marketing activities or sell through other channels without approval [p.114].