Wienerschnitzel
Wienerschnitzel offers quick-service restaurants with burgers, hot dogs, fries, and soft serve desserts. Known for classic American fare, it operates in the fast-food industry.
About Wienerschnitzel
Wienerschnitzel is an American fast food chain that specializes in hot dogs and other food products. The chain, known as Der Wienerschnitzel until 1979, was founded by entrepreneur John Galardi in 1961. Despite the name, the company does not ordinarily sell Wiener schnitzel, doing so once as a promotion. Wienerschnitzel locations are found predominantly in California and Texas; others are found in Arizona, Arkansas, Colorado, Idaho, Illinois, Louisiana, New Mexico, Nevada, Utah, Nebraska and Washington, as well as the U.S. territory of Guam. Outside the United States, there are stores located in Ecuador.
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Wienerschnitzel franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a new Wienerschnitzel® ranges from $499,100 to $1,962,100 [p.1]. This includes costs for training, FF&E, and other expenses as detailed in the FDD excerpts.
What is the initial franchise fee?
The initial franchise fee for a traditional new location is $32,000 [p.8]. For each subsequent franchise agreement, the initial franchise fee is reduced by 50%, thus being $16,000 [p.8]. This information is subject to credits as specified in Section 1.4 of the FDD [p.200].
What are the ongoing royalty and advertising fees?
This isn't specified in the excerpts.
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD excerpts do not detail the duration of the initial franchise agreement or the terms for renewal beyond mentioning conditions under which the initial fee might be refunded upon renewal.
Can I sell or transfer my franchise, and what does that require?
To sell or transfer your franchise, you must first satisfy all past due obligations to the Franchisor and Service LLC [p.101]. Additionally, if a partial interest is being transferred, the proposed transferee cannot be a current owner or family member of a current owner of Franchisee, and the Franchisor may have an option to purchase or a right of first refusal under certain conditions [p.267]. The Franchisor will not unreasonably withhold consent for any transfer (full or partial) [p.267]. If approved, the transferor will not be liable for the actions of the transferee franchisee [p.267].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if certain conditions are met. According to [p.206], termination due to an event like expiration or another specified condition does not automatically terminate other agreements unless those events are specifically provided for in those agreements or the grounds for terminating one agreement also apply to others and all requirements for termination are satisfied. Additionally, as stated on [p.82], if within 12 months of entering into the Franchise Agreement, the franchisee has not obtained proof of real estate rights approved by the franchisor, or after 12 months, despite proposing three site locations, none is approved by the franchisor and no location satisfactory to the franchisee is identified, either party can terminate the agreement. [p.82]
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD sections discuss working capital requirements and financial reporting but do not detail specific net worth or liquid capital qualifications for franchisees.
Do I get an exclusive or protected territory?
This isn't specified in the excerpts. The FDD indicates that you do not receive an exclusive territory, and there are no restrictions on competition from other franchisees, outlets owned by the company, or other distribution channels controlled by the company [p.24]. However, you have an exclusive development agreement to open a certain number of restaurants within your designated area [p.222], but this does not imply an exclusive territory in terms of preventing competition.
What training and ongoing support does the franchisor provide?
The franchisor provides an Apprenticeship Program for individuals with a 25% or more stake in the business who are not attending the Operator-in-Training Program, which consists of 10 days of training at a Certified Training Restaurant and 5 days at their Support Center. Additionally, initial franchise license fees are recognized as revenue over the term of the franchise agreement on a straight-line basis, consistent with the franchisee's right to use and benefit from the trade name, operating systems, and products, indicating ongoing support and services. [p.23, p.62]
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 and it is included in Item 19 of the disclosure document. Financial performance information that differs from what is provided in Item 19 may be given only if the franchisor provides actual records or supplements the information under specific circumstances [p.31].
What am I restricted to selling, and where must I buy supplies?
You must sell all items designated by the franchisor and cannot sell anything else without their approval. You can only sell at retail within the restaurant location and not through wholesale or other means like vending machines or video games [p.26]. You may have to buy or lease certain items from the franchisor or a limited group of suppliers they designate, which might be more expensive than purchasing elsewhere [p.3].