Roy Rogers
Roy Rogers Restaurants offer quick-service dining with classic American fare like roast beef sandwiches and fried chicken. Known for their family-friendly atmosphere and iconic brand, they operate in the fast-food restaurant industry.
About Roy Rogers
Roy Rogers, nicknamed the King of the Cowboys, was an American actor, singer, television host, and rodeo performer.
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Roy Rogers franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation ranges from $755,250 to $1,365,250 for converting an existing restaurant into a Roy Rogers Restaurant, $817,250 to $967,950 for an InLine/Strip Center Restaurant, and $1,235,250 to $1,580,950 for a newly constructed Roy Rogers Restaurant. [p.1]
What is the initial franchise fee?
The initial franchise fee is $30,000 for establishing a single restaurant under the agreement [p.10]. This fee is non-refundable and fully earned upon signing the agreement [p.10]. For experienced operators who sign an Area Development Agreement for multiple restaurants, there is a 50% reduction in the initial franchise fee as part of the Discount Program [p.11].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is calculated as an average of 5% of annual revenues based on the typical performance of similar restaurants [p.58]. For local advertising and promotion, the franchisee incurs direct costs related to purchasing and producing advertising materials, media space or time, delivery marketing fees, and other out-of-pocket expenses in their local market [p.35]. This does not include indirect advertising agency fees.
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?
This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.83]. However, according to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause [p.84, p.95]. This means that if the termination grounds stated in the agreement do not constitute 'reasonable cause,' as defined by law, those provisions may not be enforceable.
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. You may face competition from other franchisees, outlets owned by the franchisor or its affiliates, or other channels of distribution controlled by the franchisor [p.41, p.39].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program for Highly Trained Personnel, which includes individuals like the Director of Operations and General Manager. This training is conducted under the supervision of Al Jones, the Director of Operations. Additionally, the franchisor offers ongoing support through training programs, though specific details are not provided in the excerpts beyond this general statement. [p.32]
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 can provide actual records of existing outlets if requested [p.60]. Additionally, they are permitted to share historical financial performance based on either franchisee-owned or company-owned restaurants [p.53], but they do not make any financial performance representations beyond these disclosures [p.60].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling products only for consumption on the Restaurant's premises, for personal carry-out, delivery, and 'drive-thru' consumption. You must buy all required items from suppliers approved by the franchisor, including certain equipment and materials specified in the Manual [p.23].