Tazikis
Taziki's Mediterranean Café offers fast-casual restaurants serving Mediterranean cuisine. Known for its diverse menu and authentic flavors, it operates in the competitive quick-service restaurant sector.
Tazikis franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Taziki's Mediterranean Café franchise ranges from $567,000 to $1,198,000. This includes an initial fee of $35,000 for your first unit and $1,000 for prototype plans [p.1].
What is the initial franchise fee?
The initial franchise fee is $35,000 per location to be developed under an Area Development Agreement (ADA), and it is paid upon signing an individual franchise agreement, recognizing the remaining amount over the term of the franchise agreement [p.209, p.12].
What are the ongoing royalty and advertising fees?
The franchisees typically pay ongoing fees based on a percentage of sales. Additionally, the company expenses advertising costs as incurred for its marketing activities, which benefit all franchisees collectively [p.208, p.225].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement and whether you can renew it are not specified in the provided excerpts. However, the process for renewal is outlined; you must give written notice at least 180 days but no more than one year before the end of the initial or any renewal term, accompanied by a $5,000 non-refundable fee [p.75].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can sell or assign your Franchise Agreement and transfer the franchised business to a third party at the approved location, provided it complies with the transfer provisions outlined in the agreement [p.249]. However, the franchisor reserves the right to refuse such transfers for good cause, which is not defined but could include various reasons deemed appropriate by the franchisor [p.5, p.188, p.191].
On what grounds can the franchisor terminate the agreement?
According to [p.5], the franchisor can terminate the franchise agreement only for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and failing to cure such failure after being given written notice and a reasonable opportunity to do so (no more than 30 days). This isn't specified in the other excerpts provided.
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?
Based on the excerpts, you are granted a Protected Area where you have the right to operate a Franchised Business exclusively. However, the franchisor retains the right to operate or franchise a Franchised Business anywhere outside this Protected Area and also has the ability to open Nontraditional Concept Retailers within your Protected Area [p.246]. Additionally, during the Development Term, you have an exclusive right to develop Taziki's Mediterranean Café Restaurants in the Development Territory, but after the Development Term, territorial rights are governed by the Protected Area of each Development Unit [p.167]. This isn't specified in the excerpts regarding Nontraditional Concept Restaurants' exclusivity directly tied to your Protected Area.
What training and ongoing support does the franchisor provide?
The franchisor provides a franchise license that includes the use of its intellectual property, pre-opening services such as site selection, training, and inspections, and ongoing services like development of training materials and menu items, as well as restaurant monitoring and inspections [p.208]. Additionally, 'train the trainer' services are provided to key members of the company's service teams upon request [p.161].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2023, the number of franchised outlets is not specified in the excerpts. However, during the year preceding the date of this Disclosure Document, eight franchise agreements were terminated [p.68].
Does the franchisor share any financial performance or earnings information?
The franchisor can provide actual records of an existing outlet if a franchisee is considering purchasing it [p.56]. However, beyond this, the franchisor does not make representations about future financial performance or past performance of company-owned or franchised outlets and does not authorize its employees or representatives to do so either orally or in writing [p.63].
What am I restricted to selling, and where must I buy supplies?
You are required to offer the entire menu except for optional items and may not introduce additional menu items without prior written consent. You must purchase food ingredients from a designated affiliate of Distribution Market Advantage, Inc., non-coffee/tea beverages from Coca-Cola North America Food Service or Dr Pepper/Seven Up, Inc., coffee and tea from Royal Cup, Inc., tomato chutney from Alecia's Chutney, cleaning and sanitation products from Ecolab, software and services from Fresh Technology, alcohol payment systems from FinTech, and the mobile and online ordering application from ToGo Technologies. Additionally, you must use a Square tablet-based point of sale system [p.21].