New York Fries
New York Fries specializes in French fries, poutine, and premium hot dogs, operating under distinctive restaurant concepts. Known for its American-style fried potato offerings, it operates in the quick-service restaurant sector.
About New York Fries
New York Fries, shortened as NYF, is a Canadian fast food restaurant chain that mainly serves french fries, hot dogs and poutine.
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New York Fries franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a NYF Restaurant franchise ranges from $450,000 to $1,233,400. This includes a mandatory payment of $30,000 to the franchisor or its affiliate [p.1].
What is the initial franchise fee?
The initial franchise fee is $30,000, payable upon signing each Franchise Agreement. This fee is nonrefundable and fully earned by the franchisor when the agreement is signed [p.16, p.22].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is based on a percentage of Gross Sales, as specified in Schedule '1' to the Agreement [p.242]. For advertising contributions, currently, 2.5% of Gross Sales must be contributed weekly to the Fund, with an upper limit of 3% if increased by the Franchisor [p.32].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in the excerpts. However, you may be able to renew the agreement; the renewal term commences upon expiry of the initial term and continues for up to 10 years or until the lease expires or terminates, subject to payment of a renewal fee [p.244].
Can I sell or transfer my franchise, and what does that require?
The franchisor can refuse to permit a transfer of ownership of the franchise except for good cause, which includes but is not limited to certain conditions [p.5]. If there's a share transfer between existing shareholders with no new Designated Shareholder or Approved Manager being appointed and no training required, the transfer fee will be reduced to 20% of the initial fee charged to new franchisees [p.281].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement prior to its expiration for good cause, which includes failing to comply with any lawful provision of the Franchise Agreement and not curing such failure within a reasonable period, typically no more than 30 days [p.5]. Additionally, if you fail to establish and operate the minimum number of franchised businesses by specified deadlines, the franchisor may terminate the Development Agreement [p.40].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD mentions requiring credit information about the proposed transferee's financial ability and stability, including personal net worth statements if applicable [p.283], but it does not provide specific thresholds or requirements for net worth or liquid capital needed to qualify as a franchisee.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, or other channels of distribution or competitive brands that the company controls [p.39]. However, as long as you comply with the Franchise Agreement terms, the company will refrain from granting franchises to others within your designated Territory for the operation of NYF Restaurants [p.37].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training at their premises in Toronto, Ontario, Canada, as well as virtually. This training includes a blended learning approach with various materials and tests. For ongoing support, the franchisor has developed a Restaurant Technology Program to assist franchisees with financial and administrative management, which requires participation and compliance with specific terms and conditions [p.273].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 29, 2024, there were 104 franchised NYF Restaurants in Canada. The number of franchised outlets that have closed or been terminated is not specified in the excerpts provided.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet if you are purchasing one, but they do not make any representations about a franchisee's future financial performance or the past performance of company-owned or franchised outlets. They also do not authorize their employees or representatives to make such representations [p.53].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling all menu items authorized by the Guidelines [p.43]. Additionally, you must purchase imprinted items such as napkins, straws, bags, cups, menus, and other paper goods only from suppliers designated or approved in writing by the franchisor [p.24]. This includes smallwares and containers for food and drink items that comply with the Guidelines [p.3, p.255].