Smokin Oak
Smokin Oak franchises wood-fired pizza restaurants and taprooms, offering unique dining experiences with proprietary recipes and operations systems in the casual dining and bar industry.
Smokin Oak franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment required to open one Smokin' Oak Wood-Fired Pizza restaurant is $448,745 to $891,205. This amount includes a development fee of $118,500 that must be paid prior to opening, as well as other costs outlined in Chart 7.A. of the FDD, except for the Initial Franchise Fee since it is not applicable under the Development Agreement [p.24].
What is the initial franchise fee?
The initial franchise fee varies based on whether the franchisee is a new franchisee or a conversion franchisee. New franchisees must pay $49,500 [p.10], while conversion franchisees pay $15,000 [p.20]. This fee is nonrefundable and deemed fully earned upon payment [p.109].
What are the ongoing royalty and advertising fees?
The ongoing weekly royalty fee is 6% of the franchisee's Net Sales [p.109]. Additionally, each franchisee must pay a Brand Fund Contribution equal to 2% of their total Net Sales on a weekly basis in the same manner as the Royalty Fee [p.15]. This contribution supports advertising and marketing efforts.
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement covers a ten-year period with unlimited options to renew for an additional ten years each, as stated on [p.93]. Renewal of your Franchise Agreement depends on several conditions, including providing written notice 180 days before the current term expires and executing the then-current form of Franchise Agreement, among others, as detailed in [p.17].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires meeting certain conditions as outlined in Item 17 [p.17]. These include satisfying all conditions of transfer specified in the Franchise Agreement, complying with applicable state and federal laws, and potentially paying a transfer fee which could be waived under specific circumstances, such as transferring to a corporation or limited liability company you control [p.17].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if it is prohibited from doing business with you under any anti-terrorism law enacted by the United States Government [p.164]. This isn't specified in the excerpts for other grounds of termination.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not detail specific net worth or liquid capital requirements for qualification as a franchisee. However, it mentions that the transferee must have adequate financial resources and capital to meet performance obligations under the agreement [p.132], and must maintain sufficient working capital to operate the business properly [p.119].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. The franchisor retains the right to open Smokin' Oak Wood-Fired Pizza restaurants at non-traditional sites within your territory and can also sell products through various channels without granting you any compensation for these sales [p.37, p.108]. Additionally, the franchise agreement does not provide you with options or rights of first refusal to acquire additional franchises in the territory [p.163, p.38].
What training and ongoing support does the franchisor provide?
The franchisor provides comprehensive initial training which includes classroom and practical experience covering sanitation, safety, menu preparation, customer service, financial controls, inventory management, operational techniques, human resources, advertising, maintenance of quality standards, and more. This training lasts approximately ten days and is held at the franchisee's business or a designated location. Additionally, ongoing support through manuals and other materials is provided to assist with operations [p.30].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, there were seven franchised locations in operation. According to [p.56], Exhibit H contains information on franchisees who have not yet opened, as well as those who have been terminated, canceled, not renewed, or otherwise ceased to do business under a Franchise Agreement during the most recently completed fiscal year. However, the specific number of closed or terminated locations is not provided in these excerpts.
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor can provide financial performance information if there is a reasonable basis for it and it is included in the Disclosure Document [p.53]. However, other than the financial performance representation specified in Item 19, no other financial performance representations are made, and no such representations are authorized by employees or representatives [p.54].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering only Approved Products and Services as specified by the franchisor [p.24]. You must purchase certain Approved Products and Services from approved or designated suppliers [p.24], though the franchisor may also require you to use specific suppliers for quality assurance or efficiency reasons [p.24]. For supplies, you are limited to using office and store supplies that support the image and positioning of the System as specified by the franchisor [p.21].