Tribos Peri Peri
Tribos Peri Peri franchises offer flame-grilled meats seasoned with Portuguese Peri Peri spice in fast-casual restaurants. Known for their spicy seasoning, these establishments cater to high-traffic areas. Part of the quick-service restaurant industry.
Tribos Peri Peri franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Tribos Peri Peri franchise ranges from $301,050 to $733,000. This includes an initial franchise fee of $35,500 that must be paid to the franchisor or affiliate [p.1].
What is the initial franchise fee?
The initial franchise fee is $35,000 and it is uniform for the first unit. For subsequent units in a multi-unit development agreement, the initial franchise fee is reduced to $25,000 each [p.20]. This fee is not refundable [p.18, p.56].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is a weekly payment of 6% of Gross Sales, due on the first Tuesday of the following week [p.57]. The franchise agreement does not specify an advertising fee but indicates that the company uses funds for marketing purposes, with expenditures primarily local and managed through a Marketing Fund [p.26-27].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, the franchisor can refuse to permit a transfer of ownership of a franchise except for good cause. Good cause includes the failure of the proposed transferee to meet the franchisor's qualifications, being a competitor of the franchisor, unwillingness to comply with obligations, or failure to pay sums owed [p.5(g)]. This does not prevent the franchisor from exercising a right of first refusal to purchase the franchise [p.5(g)].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement for immediate termination due to insolvency, abandonment, mutual agreement, material misrepresentation, legal violation persisting 10 days after notice, repeated breaches, judgment, criminal conviction, monies owed more than 5 days past due, and imminent danger to public health or safety. Additionally, there is a 60-day opportunity to cure for other breaches before termination. [p.139, p.149]
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 territory under a Multi-Unit Development Agreement (MUDA). You are acknowledged to not have exclusive rights to develop, open, or operate Tribos Peri Peri businesses within your designated area. [p.32, p.97]
What training and ongoing support does the franchisor provide?
The franchisor provides on-site opening assistance with at least one week of support during business opening to train employees [p.59]. Additionally, they offer an initial training program as part of hiring and training new employees [p.25], and may require post-opening training for the Principal Executive or other employees at any time [p.61]. Training classes are scheduled based on the needs of new franchisees and are held three to six times per year in various locations [p.31]. However, the franchisor's financial condition is questionable, which might affect their ability to provide services and support [p.4].
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, but they do not make any representations about future financial performance. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management and relevant regulatory agencies as specified [p.42].
What am I restricted to selling, and where must I buy supplies?
You are not restricted to selling only certain products; however, you must purchase or lease items from the franchisor or a limited group of suppliers designated by them, which may be more expensive than other options [p.3]. Additionally, you must buy equipment, supplies, smallwares, and inventory from approved vendors or according to their specifications [p.21].