The Original Pancake House
The Original Pancake House offers franchises specializing in pancakes, waffles, and omelets. Known for its breakfast menu, it operates in the casual dining restaurant sector.
The Original Pancake House 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 Original Pancake House® restaurant franchise ranges from $482,500 to $1,666,250. This includes a mandatory payment of between $60,312 and $60,625 to the franchisor or an affiliate. [p.1]
What is the initial franchise fee?
The initial franchise fee is $60,000 [p.11], which must be paid in a lump sum upon signing the Franchise Agreement and is not refundable under any circumstances [p.11]. This fee is used to partially cover costs related to your opening, such as training expenses [p.180].
What are the ongoing royalty and advertising fees?
The franchisee is required to contribute up to 1% of the Restaurant's Gross Revenue to the Marketing Fund if the company establishes it [p.63]. Additionally, the company may require the franchisee to spend at least 1% of the Restaurant's Gross Revenue on advertising and promotion monthly [p.24]. This isn't specified in the excerpts for ongoing royalty fees specifically, but typically royalties are mentioned elsewhere in the FDD or need to be clarified with the franchisor directly.
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD does not mention the duration of the initial franchise agreement or the renewal process.
Can I sell or transfer my franchise, and what does that require?
According to [p.68], you can transfer your ownership in the franchise, but it must meet certain conditions and cannot be done unreasonably withheld by the franchisor. The proposed transferee and its owners must also meet the franchisor's standards for good moral character and other applicable requirements. Additionally, a transfer of ownership should be made in conjunction with transferring the franchise agreement itself. [p.5] mentions that the franchisor can refuse to permit a transfer except for good cause, which is defined but not fully detailed here.
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 the net worth or liquid capital required for qualification as a franchisee.
Do I get an exclusive or protected territory?
No, you will not receive an exclusive territory [p.27]. You may face competition from other franchisees, outlets owned by the company, or competitive brands controlled by them.
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program lasting approximately ten weeks before the restaurant opens. This training is conducted at a THE ORIGINAL PANCAKE HOUSE restaurant owned by the company or one of its affiliates, and up to four individuals (including the franchisee and managers) can participate [p.53]. The franchisee (or a Controlling Owner if an entity) must complete all phases of this training to the franchisor's satisfaction [p.22, p.53]. Additionally, the franchisor may provide up to five consecutive days of on-site training at the restaurant during normal business hours before and after opening [p.53]. Ongoing support includes providing assistance in training personnel, consultation regarding necessary fixtures and equipment, information about ingredients and food preparation, and other operational methods [p.115].
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 provide financial performance information if there is a reasonable basis for it, but they do not make any representations about future financial performance. They may provide actual records of an existing outlet being considered, and other financial performance information should be reported to specified authorities [p.38].
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 designated suppliers as specified in the FDD [p.3]. This could potentially result in higher costs compared to purchasing from other sources.