The Flying Biscuit Cafe
The Flying Biscuit Cafe operates casual full-service restaurants offering breakfast, brunch, and other foods under the 'THE FLYING BISCUIT' trademark. Known for its menu focused on morning meals, it is part of the broader casual dining restaurant industry.
The Flying Biscuit Cafe franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Flying Biscuit restaurant is between $766,750 and $1,171,350. This includes a mandatory payment of $45,000 to the franchisor or its affiliate as part of the market development fee, which can be credited against the initial franchise fee for each restaurant developed according to the Development Schedule. [p.1]
What is the initial franchise fee?
The initial franchise fee is $45,000 for each Restaurant franchised by you [p.12]. This fee is uniform and not subject to reduction unless the franchisor exercises its discretion on a case-by-case basis [p.12]. The fee is not refundable under any circumstances [p.19; p.116].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of Gross Sales [p.116], payable weekly [p.17]. For non-compliance with operational standards or other obligations, this can be increased to 10% of Gross Sales plus a $250 per week surcharge until the defaults are cured [p.116]. Advertising fees must be paid by automated bank draft and cannot exceed 2% of Gross Sales annually [p.166], but specific amounts depend on participation in local, regional, or national advertising cooperatives [p.126].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in the excerpts. However, if you wish to renew the franchise after the initial term expires, you must provide written notice at least six months before the expiration of the Initial Term, and all conditions for renewal must be met, including a 10-year renewal period upon approval [p.114].
Can I sell or transfer my franchise, and what does that require?
To sell or transfer your franchise, a substantial change such as transferring 20% or more of the Franchised Outlets (excluding certain specified transfers) or transferring a substantial portion of the assets not in the ordinary course of business would be required. In such cases, you must use best efforts to ensure the acquiring party assumes all obligations under the Participation Letter [p.220-221]. Additionally, any assignment by either party requires the express written consent of the other party, which may not be unreasonably withheld [p.221].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if there is any misrepresentation by the franchisee or its owners, agents, bankers, employees, and affiliates under [p.148]. Additionally, termination can occur due to a violation of Anti-Terrorism Laws by the franchisee or developer and their related parties as stated in [p.148] and [p.88]. The franchisor may also terminate for the franchisee's default, which could result in liquidated damages as outlined in [p.139].
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. According to the excerpts, you are granted limited territorial protection against other Flying Biscuit restaurants opening near your location [p.215], but you have no exclusive territorial rights, protected territory, or other rights to exclude, control or impose conditions on the location or development of other or future franchises under the Marks or on their activities [p.41, p.71]. Your Franchise Territory will be negotiated and specifically described in your Franchise Agreement, but it does not provide exclusivity [p.41].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training programs that include certification of managers, covering topics such as front-of-house technology systems. Additional training may be required from time to time at the franchisee's expense [p.33]. Ongoing support includes access to operations manuals and assistance with procedures, standards, and methods of operation [p.8], though state or federal employment laws-specific training is the franchisee’s responsibility [p.33].
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 may provide financial performance information if there is a reasonable basis for it and it is included in the Disclosure Document. However, other than the specific financial performance representation provided, the franchisor does not make any representations about future or past financial performance of company-owned or franchised outlets [p.57]. This includes both oral and written statements by its employees or representatives [p.57].
What am I restricted to selling, and where must I buy supplies?
You are not restricted to selling specific items; however, you may have to buy or lease certain items from the franchisor or a limited group of suppliers designated by them. These items might be more expensive than those available elsewhere [p.4].