Monks
Monk's Bar and Grill offers full-service restaurants featuring classic and gourmet hamburgers in a sports-themed atmosphere. Known for its robust menu and investment range, it operates in the casual dining restaurant sector.
Monks franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a franchised Monk's Bar and Grill® Restaurant ranges from $855,500 to $3,435,000 for a free-standing restaurant and from $749,500 to $2,763,000 for an attached restaurant. [p.1]
What is the initial franchise fee?
The initial franchise fee is $30,000 [p.78, p.59, p.1]. However, if an agreement is signed in compliance with an Area Development Agreement, then the initial franchise fee will be the amount as specified in such agreement [p.78, p.59, p.174].
What are the ongoing royalty and advertising fees?
The ongoing royalties are generally 2.5% to 4.0% of revenues, with a base amount of $1,000 to $2,000, which are recognized as sales occur [p.78]. Additionally, franchisees must pay a production fee equal to 1% of the preceding four-week period's revenues, which goes into an advertising and marketing fund controlled by the company [p.78].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
Yes, you can transfer your franchise agreement to a third party with Monkburger's prior written approval [p.203]. However, if you wish to relocate your restaurant, you must obtain Monkburger’s prior written approval and pay a Relocation Fee of $2,500 [p.25]. Additionally, both parties must sign a joint and mutual release of claims upon transfer [p.41].
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
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. According to the FDD excerpts, while you will have a defined Territory under an Area Development Agreement, Monkburger retains the right to develop other restaurant concepts within your Territory and has the absolute right to operate Competitive Restaurants in specific locations such as college campuses or military facilities [p.26, p.172]. Additionally, Monkburger can market and sell products through various channels including the internet and mail order, even if these sales are made within your Territory [p.26].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that lasts up to 30 days, covering various business operations. This includes topics such as basic procedures, equipment operation, hiring, advertising, food preparation, and customer service [p.113]. Additionally, Monkburger will arrange for an Opening Team to assist with the opening of the restaurant for at least 14 days [p.20]. For ongoing support, if you enter into an Area Development Agreement, you must designate a certified trainer who will help train employees at subsequent restaurants opened under this agreement [p.25].
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?
Monkburger does not make any financial performance representations other than providing actual records of an existing outlet if you are purchasing one. However, they recommend that prospective franchisees conduct their own independent investigation and consult with various advisors before making a decision [p.37].
What am I restricted to selling, and where must I buy supplies?
You must sell only the foods, beverages, and products specified or approved by Monkburger. You may not sell any items on a wholesale basis from locations other than your Franchised Location or through methods such as the Internet, catalog, mail order, telemarketing, or any other method of sales or distribution [p.28]. Additionally, you must purchase, lease, or acquire certain foods, beverages, products, and services that meet Monkburger's written standards and specifications [p.16]. This requirement ensures adherence to uniformity and quality standards associated with all Monk's Restaurants [p.16].