TGI Fridays
TGI Fridays offers full-service casual theme restaurants with a specialized menu and full bar service. Known for its themed atmosphere and extensive drink offerings, it operates in the casual dining restaurant industry.
About TGI Fridays
TGI Fridays Franchisor, LLC, doing business as TGI Fridays, is an American casual dining restaurant chain focusing primarily on American cuisine. The restaurant's name stands for "Thank God It's Friday". TGI Fridays operates more than 380 locations in more than 35 countries, including 78 in the United States. The chain filed for bankruptcy in the United States on November 2, 2024.
Read more on Wikipedia → · Facts from Wikipedia (CC BY-SA)
TGI Fridays franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a franchised Fridays Restaurant ranges from $2,721,000 to $4,326,000 [p.2]. This range includes costs such as the initial franchise fee and other required payments [p.89], but does not include the cost to purchase or lease real estate for a new restaurant [p.27].
What is the initial franchise fee?
The initial franchise fee is $50,000 when the Developer signs the Franchise Agreement for each Restaurant that it develops [p.89].
What are the ongoing royalty and advertising fees?
The franchisee must pay a nonrefundable and continuing Royalty Fee equal to 4% of Gross Sales for the right to use the System and Proprietary Marks at the premises. Additionally, if certain revenues like alcoholic beverage sales or gambling device revenues cannot be included in the royalty fee due to legal restrictions, the franchisee still pays the Royalty Fee on all other Gross Sales as if these revenues were included. [p.142]
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD excerpts do not mention the duration of the initial franchise agreement or details about renewal terms beyond requiring fair compensation under certain conditions [p.362(d)].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause [p.362]. Good cause includes but is not limited to unspecified factors. This means there are specific reasons why a franchisor might deny a transfer request, though these reasons are not detailed in the provided excerpts.
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 exceeding 30 days [p.362]. Additionally, the franchisor may terminate the agreement on any grounds available by law [p.372].
What financial requirements — net worth and liquid capital — do I need to qualify?
To qualify, you must meet the franchisor’s current financial requirements, which include submitting certified financial statements for at least the preceding fiscal year prepared by a certified public accountant, supported by income tax returns. The individual net worth of any Principal Owners involved may also be considered if used to satisfy the financial requirements [p.133]. This isn't specified in the excerpts regarding exact net worth or liquid capital amounts needed.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory under the Development Agreement and Franchise Agreement [p.52]. The agreements specify that there are no exclusive areas or protected territories unless specifically defined in your Agreements [p.252, p.52], and that other franchisees or outlets may operate near your stores as long as they do not fall within any geographically defined radius restriction or protected territory [p.252].
What training and ongoing support does the franchisor provide?
The franchisor provides a range of training programs, including initial training and pre-opening training conducted by individuals who have worked for at least 6 months and successfully completed the Coach validation program. On-the-job training is administered by management teams or "Coaches" in existing franchise restaurants or company-owned Centers of Excellence. For franchises operating three or more restaurants, they may establish a Center of Excellence restaurant to offer team and management training programs. The franchisor also offers ongoing support through its management agreement with TGIF Inc., though it remains ultimately responsible for all required support and services under the Franchise Agreement and Development Agreement [p.35, p.158].
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 disclose financial performance information if there is a reasonable basis for it [p.67]. However, this information must be either from actual records of an existing outlet you are considering buying or supplements to the information provided in Item 19 [p.67]. The franchisor does not make any financial performance representations other than those specified, and no one is authorized to make such representations orally or in writing except for providing actual records of a specific outlet if purchased [p.70, p.252].
What am I restricted to selling, and where must I buy supplies?
You are required to sell only those products and services expressly authorized by the franchisor in the Manuals or otherwise in writing. The franchisor has the right to change menu items, ingredients, and other sold goods without limitation, and you must comply with these changes promptly [p.58]. You may have to buy or lease certain items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than purchasing elsewhere [p.4].