The Gyro Shack
The Gyro Shack offers quick-service Greek and Mediterranean cuisine including gyros, salads, and bowls. Known for authentic flavors and fresh ingredients, it operates in the casual dining restaurant sector.
The Gyro Shack 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 Gyro Shack franchise ranges from $263,400 to $655,900. This includes $34,900 that must be paid to the franchisor and/or its affiliate. [p.1]
What is the initial franchise fee?
The initial franchise fee is $34,900 and must be paid in a lump sum upon signing the Franchise Agreement [p.11, p.82]. This fee is not refundable under any circumstances [p.11, p.82].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 2% of gross sales, payable at the same time as the Royalty Fee [p.83]. For local advertising, you must spend at least 1% of your Restaurant's Gross Sales each month [p.94], with a recommendation to spend this amount and the possibility of increasing it to 2%. This isn't specified in the excerpts for exact numbers or additional details beyond these percentages.
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, you may have the option to enter into a successor term for one additional 10-year period, but only by delivering written notice within nine months (but not later than six months) prior to the end of the Initial Term [p.81].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires approval from the franchisor. Specifically, any assignment or transfer must be approved in writing by the franchisor after receiving a completely executed copy of all transfer documents [p.161].
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide specific details on net worth or liquid capital requirements for qualifying as a franchisee. However, it emphasizes maintaining sufficient working capital and conducting an independent investigation into your financial resources needed to operate a Gyro Shack Restaurant [p.50, p.20].
Do I get an exclusive or protected territory?
No, you do not get an exclusive territory. You may face competition from other franchisees, outlets owned by the company, or competitive brands controlled by them [p.37]. However, as a Multi-Unit Operator, you are granted rights to develop and operate Gyro Shack Restaurants within specified intersections or addresses, but this responsibility is yours, and the company has no obligation to approve sites for you [p.38].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training to up to two trainees, including you, and one General Manager. This training consists of classroom or virtual instruction and on-the-job training, totaling no more than 15 days [p.32]. Additionally, refresher training programs and an annual meeting may be offered, though attendance is not always mandatory [p.34]. The franchisor also offers instructors and training materials for the initial training at no cost to you, but any subsequent training or travel expenses are your 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, Pronomio, LLC, does not make any financial performance representations except for historical data from five Gyro Shack outlets operated by affiliates and one outlet operated by a franchisee. This information is based on gross sales without reflecting costs, and the franchisor advises conducting an independent investigation into expenses. [p.50]
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the menu items and other products and services that the franchisor has expressly approved in writing [p.42]. You must obtain all food and beverage items, ingredients, supplies, materials, fixtures, furnishings, equipment (including point-of-sale system), and other products used or offered for sale at the Restaurant solely from suppliers who demonstrate, to the franchisor's continuing reasonable satisfaction, the ability to meet their standards [p.22].