Picklemans
Pickleman's Gourmet Cafe offers quick serve restaurants featuring toasted sandwiches, soups, salads, pizza, and specialty beverages. Known for its gourmet cafe menu items, it operates in the fast-casual dining sector.
Picklemans franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Pickleman's Gourmet Cafe ranges from $416,300 to $1,043,500. This includes the franchise fee which is between $38,100 and $39,800 [p.1].
What is the initial franchise fee?
The initial franchise fee is $35,000 [p.10, p.45]. This fee is due at the time you sign the Franchise Agreement [p.11] and is non-refundable [p.11].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 6% of gross sales [p.13, p.46]. Advertising income collected by Pickleman's Franchising, LLC was $268,689 in 2023 and $224,960 in 2022 [p.152], but this is not an ongoing fee paid directly by franchisees to the company; it is income collected from related parties.
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 provided. However, according to [p.46], if you are in full compliance with the terms of the Agreement, you will have the right to renew for 2 additional terms of 5 years each (Renewal Terms), subject to certain conditions and fees.
Can I sell or transfer my franchise, and what does that require?
You can typically sell or transfer your franchise only for good cause as specified by the franchisor. Good cause includes but is not limited to specific circumstances determined by the franchisor [p.6]. This does not prevent the franchisor from exercising a right of first refusal to purchase the franchise in such cases.
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 (not more than 30 days) to do so [p.5]. Additionally, in Minnesota, the franchisor must provide 90 days' notice of termination unless it is due to voluntary abandonment by the franchisee, their conviction of an offense directly related to the business conducted according to the agreement, or failure to cure a default that materially impairs the goodwill associated with the franchisor's trade name, trademark, etc. [p.112-114].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide specific details on required net worth or liquid capital for qualification as a franchisee. However, it does state that the franchisor may consider your financial resources, including but not limited to your financial success from existing units, when evaluating your ability to operate additional locations [p.88].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. Your territorial protection is dependent on your compliance with the Franchise Agreement and does not include the right to acquire additional franchises either within or outside your Assigned Territory [p.27]. You are also prohibited from distributing individual advertising items or soliciting customers outside of the Assigned Territory without prior consent, except under specific conditions [p.28, p.99].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that typically lasts about 6 weeks and is conducted at an existing Pickleman's Gourmet Cafe restaurant. This training is mandatory for you and one designated manager before opening, unless you already operate a cafe, in which case it may not be required. Additional fees apply if more than one manager needs to attend the initial training. The training is overseen by Kenneth Rice, who has extensive experience in the food industry and has developed training systems for other franchises. Ongoing support includes as-needed training based on specific needs identified by the franchisor [p.24].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, there were 32 franchised outlets [p.133]. This isn't specified in the excerpts regarding how many have closed or been terminated.
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor can provide actual financial performance information based on existing outlets. According to [p.34], this information must have a reasonable basis and can include actual records from an outlet you are considering purchasing. However, the franchisor does not make any representations about future financial performance or past financial performance of company-owned or franchised outlets, except in specific circumstances as outlined [p.36].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering only those goods and services that the franchisor has approved [p.31]. You must purchase products, services, supplies, equipment, and materials for your operation from manufacturers, suppliers, or distributors designated by the franchisor, or from other suppliers approved by them who meet their specifications [p.60].