The Big Biscuit
The Big Biscuit offers full-service family-style restaurants specializing in breakfast and lunch with two franchise programs: single restaurant and area development. Known for its proprietary format and process, it operates in the quick-serve dining sector.
The Big Biscuit 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 The Big Biscuit Restaurant ranges from $1,068,864 to $1,660,242. This includes the initial fee of $40,000 that must be paid to the franchisor or an affiliate. [p.1]
What is the initial franchise fee?
The initial franchise fee for the right to operate a single Franchised Business is $40,000 [p.18]. This fee is non-refundable and is split into a Development Territory Fee and a Franchise Development Fee upon execution of the Franchise Agreement [p.18].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of gross sales generated by the Franchised Business [p.90]. Additionally, Franchisees must spend at least 2% of their monthly gross sales on local marketing and provide invoices to substantiate these expenditures; failure to meet this requirement results in paying the difference into the Marketing and Brand Development Fund [p.36].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is for ten (10) years, commencing upon the execution of the agreement and concluding on the ten-year anniversary of the Effective Date [p.88]. The franchisor has the right to refuse renewal without fairly compensating you, except under specific conditions related to the term length and post-expiration business operations [p.6(d)].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, selling or transferring your franchise is subject to certain conditions [p.125]. Specifically, any assignment, transfer, or sale by the franchisee requires compliance with all conditions stated in Sections 20.2 and 20.3 of the FDD [p.125]. This includes notifying telephone companies to transfer associated telephone listings to the franchisor or a designated party at your expense [p.103].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if you fail to comply with any lawful provision of the franchise agreement and do not cure such failure within a reasonable time, which cannot exceed 30 days [p.6(c)]. Additionally, the franchisor may terminate the agreement if you are not in full compliance with all terms and conditions of the Area Development Agreement and related Franchise Agreements [p.42].
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?
You will receive a protected territory (Protected Area) within up to a 2-mile radius from your Franchised Business, but this is not an exclusive territory. This protection applies only if you are not in default under your Franchise Agreement [p.43]. Additionally, if you enter into an Area Development Agreement, you will receive the right to develop and operate The Big Biscuit restaurants within a specified geographic area called a 'Development Territory,' which is also protected from competition by other The Big Biscuit franchises during the term of the agreement [p.42].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program consisting of approximately 8 to 12 weeks covering all aspects of operating the business, which is included in the Initial Franchise Fee. This includes review and discussion of the Operating Manual. The program takes place at a corporate-owned restaurant or another designated location. Additionally, the franchisor may assign representatives for up to seven days of pre-opening and post-opening training, with associated costs reimbursable by the franchisee [p.34, p.93]. Ongoing support includes mandatory annual refresher training as needed, though all expenses are borne by the franchisee [p.38].
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 is permitted to provide financial performance information if there is a reasonable basis for it and if such information is included in the disclosure document. However, this information may differ from that provided in Item 19 of the FDD, and additional records or supplements might be required [p.57].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only those products as described by the Franchisor from time to time [p.98]. You must obtain written approval from the Franchisor for any menu changes or additions/deletions of items sold in your franchise [p.98]. For supplies, you must purchase or lease certain foods, beverages, equipment, supplies and products required for your The Big Biscuit Restaurant from suppliers approved by the franchisor ('Approved Suppliers') [p.28]. There may be only one Approved Supplier for some items, and you must follow the criteria specified by the franchisor for supplier approval [p.28].