The Counter
The Counter offers customizable burgers and more in a traditional or non-traditional restaurant setting, known for its build-your-own concept in the quick-service dining industry.
About The Counter
The Counter is a high-end casual dining restaurant chain in the United States, Mexico, Ireland, Saudi Arabia, Ghana, and Japan offering custom-topped gourmet burgers with over a million possible burger and burgers-in-a-bowl combinations through a checklist-style menu.
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The Counter franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a The Counter franchise ranges from $712,133 to $1,983,750 for a traditional restaurant and between $711,133 to $1,968,750 for a non-traditional restaurant, as stated on [p.1].
What is the initial franchise fee?
The initial franchise fee is $25,000 [p.406]. This fee must be paid by you to them upon execution of the agreement [p.199, p.295], and it is recognized on a straight-line basis over the term of the franchise agreement as the performance obligation relating to franchise rights is fulfilled [p.583].
What are the ongoing royalty and advertising fees?
The ongoing royalty and advertising fees are not specified in dollar amounts but are tied to gross sales. These fees are collected by MTY USA and are payable to them, though they may be reduced or waived at MTY USA's discretion [p.44]. The exact percentages or amounts for these fees are not provided in the excerpts.
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The FDD does not provide information about the length of the initial franchise agreement or its renewal terms beyond mentioning a renewal franchise fee of fifty percent (50%) of the then-current initial franchise fee when you renew the Agreement [p.203, p.343].
Can I sell or transfer my franchise, and what does that require?
You can sell or transfer your franchise, but the franchisor must be satisfied that the potential transferee can perform all obligations under the franchise agreement. This requirement applies to transfers shown by good cause [p.123] and is consistent across multiple pages [p.221, p.290, p.361]. The franchisor may not unreasonably withhold or delay consent [p.221, p.290, p.361].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement for good cause, which includes failure to comply with lawful material provisions of the franchise agreement and not curing such defaults within a reasonable time [p.138]. Additionally, termination is permissible if the franchisee is adjudicated bankrupt, makes an assignment for the benefit of creditors, voluntarily abandons the business, or is convicted of violating laws related to the franchised business [p.138].
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?
No, you do not receive an exclusive or protected territory. The FDD indicates that your rights are non-exclusive and do not limit the franchisor's ability to use The Counter Licensed Marks or System in your Protected Area or to establish other similar businesses anywhere they choose [p.88, p.90].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that includes modules, curriculum, instructors, and locations as detailed in the FDD. Additionally, they may modify this program at any time. Ongoing support includes the right to require franchisees or their managers to attend additional training if not operating according to system standards [p.265, p.194, p.335]. This isn't specified in the excerpts regarding specific ongoing support services beyond training requirements.
How many franchised outlets are there, and how many have closed or been terminated?
As of November 30, 2024, there were 8 franchised stores open in the United States. This document does not specify the number of closed or terminated outlets [p.108].
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any financial performance representations other than providing actual records of an existing outlet if you are purchasing one. However, they may provide such information if there is a reasonable basis and it is included in the disclosure document [p.108]. This isn't specified in the excerpts for all cases, but the franchisor can share this type of information under certain conditions [p.107].
What am I restricted to selling, and where must I buy supplies?
You are required to use and sell all Proprietary Products that the franchisor designates, which include specific buns, sauces, dressings, ground beef, chicken breasts, and ground turkey. These products must be purchased from the suppliers designated by the franchisor [p.61]. For Non-Proprietary Products not specified as part of The Counter System, you need to request approval in writing before using or buying them from alternative sources [p.65].