Perkins
Perkins offers family-style restaurants with moderately priced meals in various locations. Known for its comfort food and bakery items, Perkins operates in the casual dining restaurant sector.
Perkins franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Perkins Restaurant and Bakery franchise ranges from $1,387,715 to $3,454,465 for a New Development Unit when leasing the land and building and purchasing the equipment and signs. This amount includes $90,000 to $100,500 that must be paid to the franchisor or its affiliates [p.2].
What is the initial franchise fee?
The initial franchise fee for a new twenty-year Standard Unit Franchise is $40,000, unless you qualify for a veteran's discount or are an existing franchisee purchasing an additional unit. This fee is fully-earned and non-refundable upon execution of the agreement. [p.100, p.17]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 4.0% of Net Sales [p.100]. For advertising fees, a continuing weekly contribution to the Perkins Marketing Fund is required, which is three percent (3.0%) of Net Sales [p.102]. This amount can increase up to four percent (4.0%) at the company's discretion but not more than one percent (1%) in any consecutive twelve-month period [p.102].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement lasts for an unspecified term but allows for renewal. If you meet certain conditions, such as not being in default and having paid all fees timely during the initial term, you may renew the rights to operate the franchised business for an additional ten years [p.98].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, Perkins offers franchises for both new developments and resale units. Resale Units include existing Perkins Restaurants where a current franchisee is interested in selling their business. However, the specific terms and requirements for selling or transferring your franchise are not detailed in these excerpts. [p.9]
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if there is a default on any other agreement related to the Franchised Business, as specified in [p.140]. Additionally, for Host-Facility Units, termination can occur without penalty if the underlying food service management contract terminates without fault of the Operator, subject to certain conditions being met, according to [p.255].
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?
You do not receive an exclusive territory [p.57]. However, Perkins provides certain protections within your Development Area. During the Term of the Market Development Agreement, if you comply with its obligations and development schedule, Perkins will not establish or operate Perkins Restaurants in your Development Area, nor franchise anyone else to do so [p.59].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training for franchisees, including ServSafe Certification at a discounted rate of $90. Additionally, the franchisor may require attendance at orientation programs and other courses, seminars, and training programs as deemed necessary, which could include field-based training with a fee of $300 per day per trainer. The franchisor also offers ongoing support through an initial project timeline review meeting before site design begins, though this is currently free for the franchisee. [p.56, p.109]
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, Perkins, shares actual records of existing Perkins Restaurants if a prospective franchisee purchases one. However, Perkins does not provide general financial performance representations or projections for new locations [p.80]. This isn't specified in the excerpts for other scenarios.
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only products designated by Perkins, prepared according to their prescribed methods, and you may not sell any unauthorized products, including alcohol without written authorization [p.66]. You must purchase or lease all required items from suppliers approved or designated by Perkins, which may include fixtures, furnishings, signs, equipment, décor, computer systems, inventory, uniforms, advertising materials, operational and support services, and other supplies [p.35].