Village Inn
Village Inn offers sit-down family dining with a focus on pancakes, omelets, and other breakfast items. Known for its variety of menu options, this franchise falls within the casual dining restaurant sector.
About Village Inn
Village Inn is a casual-dining restaurant chain in the United States. Its restaurants are known for their breakfast menu items. Also, they feature a variety of salads, sandwiches, burgers, melts, and dinner items. Their pies have won numerous awards from the American Pie Council.
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Village Inn 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 Village Inn restaurant franchise ranges from $1,075,000 to $2,740,000 according to [p.1]. This estimate includes various costs but does not guarantee that additional expenses will not occur [p.40].
What is the initial franchise fee?
The initial franchise fee for a first Village Inn restaurant is $35,000. For subsequent traditional restaurants, it reduces to $25,000 for the second one and $20,000 for each additional traditional restaurant [p.33, p.39]. This fee is nonrefundable upon signing of the Franchise Agreement [p.80].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 4.0% of Gross Sales [p.36]. Additionally, franchisees have the option to prepay the royalty for a 10% discount in certain circumstances [p.81]. Advertising fees are used by Village Inn for marketing studies, creating promotional materials, and purchasing advertising time and space [p.49].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement's duration isn't specified in these excerpts, but it does mention that a franchisee must provide written notice at least six months but not more than twelve months before the expiration of the Initial Term if they intend to renew [p.79(a)]. The renewal involves paying 50% of the then-current initial franchise fee, excluding any discounts or reductions [p.79(c)].
Can I sell or transfer my franchise, and what does that require?
According to the FDD excerpts, you cannot freely transfer ownership of your franchise; it requires good cause as determined by the franchisor. The franchisor may also have a right of first refusal before allowing the transfer [p.247, p.132]. This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement prior to expiration only for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and failing to cure such failure within a reasonable time frame [p.5, p.132, p.246].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does mention cash investments required, such as land and building lease deposits, equipment lease deposits, and working capital of at least $25,000 [p.83]. However, it doesn't detail specific net worth or liquid capital requirements for qualification.
Do I get an exclusive or protected territory?
No, you will not receive an exclusive territory. You may face competition from other Village Inn locations owned by the franchisor or its affiliates, and there is no obligation for the franchisor to pay compensation for soliciting or accepting orders within your Franchise Area [p.56].
What training and ongoing support does the franchisor provide?
The franchisor provides comprehensive training programs, including on-the-job training at a certified training restaurant. The duration is approximately 10 to 12 weeks but can vary based on the manager candidate's background and performance. Training is conducted under the supervision of experienced instructors like Adam Lehr, who has extensive experience in operations management. [p.50, p.52]
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 does not make any representations about a franchisee's future financial performance or the past financial performance of company-operated or franchised outlets [p.67]. However, if you are purchasing an existing outlet, they may provide actual records of that outlet. If you receive any other financial performance information or projections, you should report it to the franchisor’s management and relevant regulatory agencies as instructed [p.67].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering only approved products and menus, with prices generally uniform across all Village Inn Restaurants. You must prepare and serve items according to their specifications, and Village Inn can modify these at any time [p.60]. Additionally, you may have to purchase or lease certain items from the franchisor or a limited group of suppliers designated by them [p.3].