Steak Escape
Steak Escape offers specialty sandwiches, salads, fries, and lemonade in a retail food outlet format. Known for high-quality products and unique merchandising techniques, it operates in the quick-service restaurant sector.
About Steak Escape
Steak Escape is a restaurant chain based in Columbus, Ohio, United States. Locations are typically found in food courts in shopping malls as well as airports, all serving a variety of menu items, including cheesesteaks. The company is known as the originator of the mall cheesesteak concept. The chain is owned by Columbus, Ohio-based Escape Enterprises.
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Steak Escape franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a single unit STEAK ESCAPE SANDWICH GRILL franchise is between $239,500 and $828,500. This range includes various costs such as the development fee and additional expenses for opening the business. [p.1]
What is the initial franchise fee?
The initial franchise fee is $25,000 and it is non-refundable [p.13, p.57]. This fee may be payable in two installments if a Franchise Agreement is entered into under a Development Agreement [p.13].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 3% of Gross Sales, as mentioned in [p.70]. For advertising, you must spend at least 2% of your Gross Sales on local and regional advertising monthly after opening your restaurant, as detailed in [p.26] and [p.70]. This amount can be credited against the Pre-Opening Advertising Amount if approved by the franchisor.
How long is the initial franchise agreement, and can I renew it?
The initial term of the Franchise Agreement is not specified in detail within these excerpts. However, you may have the option to renew your franchise for an unlimited number of additional successive ten-year terms, provided certain conditions are met before the expiration of the initial or renewal term, as stated on page [p.56].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you must obtain approval from Escape to sell or transfer your franchise, except for good cause as defined by Escape [p.6(g)]. Additionally, Escape retains the right of first refusal to purchase the franchise if it chooses to exercise this option [p.6(g)].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if there is a failure by the franchisee to comply with any lawful provision of the franchise agreement and fail to cure such failure after being given written notice and a reasonable opportunity, which cannot exceed 30 days [p.6]. Additionally, the franchisor may not unilaterally terminate or fail to renew the franchise without good cause or in bad faith, except as prohibited by law [p.171, p.169].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD excerpts do not detail specific financial requirements such as net worth or liquid capital needed for qualification as a franchisee.
Do I get an exclusive or protected territory?
You do not receive an exclusive territory [p.28, p.160]. You may face competition from other franchisees, outlets owned by Escape, or competitive brands controlled by them [p.28]. However, under certain conditions, you might be offered a development agreement that could provide exclusivity for multiple restaurants in a specific territory, but this is not guaranteed and depends on meeting the obligations outlined in the Development Agreement [p.28, p.169].
What training and ongoing support does the franchisor provide?
The franchisor provides periodic consultation and advice regarding the development and operation of the restaurant [p.25]. Additionally, Escape communicates its know-how, new developments, techniques, and improvements in areas such as restaurant management, food preparation, and services that are pertinent to operating the restaurant [p.25]. While Escape may provide guidance on pricing products and services, it is not obligated to do so or set minimum or maximum prices [p.25]. For training, additional and refresher training is generally provided at your restaurant site but depends on specific circumstances, with duration, frequency, and costs varying accordingly [p.159].
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 an existing outlet if you are considering purchasing it. Additionally, they may supplement the information provided in Item 19 with possible performance at a particular location or under specific circumstances, but they do not make any representations about future financial performance or past financial performance of company-owned or franchised outlets [p.37].
What am I restricted to selling, and where must I buy supplies?
You must operate your restaurant in conformity with the System [p.4], which implies restrictions on what you sell. Additionally, you may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, as these items might be more expensive than those you could purchase elsewhere [p.4].