Waffle Cabin
Waffle Cabin offers quick-serve Belgian sugar waffles and beverages from mobile trailers or restaurants, using proprietary recipes and branding. Known for its sweet treats, it operates in the casual dining and snack franchise sector.
About Waffle Cabin
Waffle Cabin franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Waffle Cabin restaurant ranges from $93,450 to $225,700. For a Waffle Cabin trailer/truck, the range is from $90,250 to $188,100. These amounts include from $36,588 to $56,298 that must be paid to the franchisor and/or its affiliate. [p.1]
What is the initial franchise fee?
The initial franchise fee is $23,500 for establishing a single Waffle Cabin Restaurant or Waffle Cabin Trailer/Truck. However, if you are a qualified United States veteran, this fee is reduced to $21,000 [p.89, p.10].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of Gross Sales, due on the 15th day of each month based on the previous calendar month's sales [p.89]. Additionally, a Brand Development Fee up to 2% of Gross Sales may be required if a Brand Development Fund is established [p.89], with these funds used for various advertising and marketing activities related to the franchise system [p.100].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The FDD does not provide details about the length of the initial franchise agreement or the renewal process beyond mentioning that a successor franchise agreement may be refused under certain circumstances [p.88].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot freely transfer ownership of your franchise without the franchisor's consent, except for good cause [p.5]. Any permitted assignment or transfer requires written consent from the franchisor and submission of fully executed transfer documents [p.168].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement for good cause, such as the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice and a reasonable opportunity to do so [p.5]. Additionally, under Virginia law, termination without "reasonable cause" is unlawful [p.202], which may limit the franchisor's grounds for termination.
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 net worth or liquid capital requirements for franchisees to qualify. However, it does state that you must maintain sufficient working capital to fulfill your obligations under the agreement [p.93].
Do I get an exclusive or protected territory?
This isn't specified in the excerpts. However, it appears that you do not receive an exclusive territory except for when your restaurant is located at a specific venue, where it is considered your exclusive territory and does not include surrounding areas outside of the venue [p.33]. Generally, you may face competition from other franchisees, outlets owned by the company, or other competitive brands [p.188, p.33, p.35].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program lasting approximately three days for up to four people (including Principals and General Manager) as part of the initial franchise fee [p.30]. Additionally, upon reasonable request or as deemed appropriate by the franchisor, they may provide additional trained representatives for on-site remedial training and assistance, with associated costs [p.94]. This isn't specified in the excerpts regarding ongoing regular training beyond the initial period.
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, Atomium, Inc., does not make any financial performance representations other than the one provided in Item 19 of the FDD. They do not authorize their employees or representatives to make such representations either orally or in writing [p.48]. However, if you are purchasing an existing outlet, they may provide actual records of that outlet's performance [p.45].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the proprietary products and menu items approved in writing by the franchisor. You may sell these items to customers anywhere but cannot engage in promotional activities or sell similar products through electronic media, catalogs, or telephonic communications beyond your territory [p.34]. For supplies, you may have to buy or lease certain items from the franchisor or a limited group of suppliers they designate, which could be more expensive than other options [p.3].