Perkins Restaurant & Bakery Franchise Cost & Fees
Date of Incorporation: 1958
Franchising Since: 1965
Headquarters: Memphis, Tennessee
Business Description: Perkins & Marie Calender's, LLC (PMC) is the franchisor. Perkins Restaurants are family-style restaurants offering moderately priced meals. Most restaurants are open seven days a week, and offer table service, including a broad menu of breakfast, lunch and dinner entrees.
Franchise Offer: PMC franchises the right to operate a Perkins Restaurant and Bakery at a specific location, identified by trademarks, trade names and service marks designated by Perkins & Marie Calender's, the licensor, and operated pursuant to methods, standards, specifications and other requirements designed to maintain high quality food and service m an attractive restaurant environment and doing business under the name and style of Perkins Restaurant and Bakery.
Financial Assistance: Neither PMC nor any affiliate is required to offer any financial assistance directly or indirectly to franchisees. Although not obligated to do so, PMC has, from time to time, assisted in arranging permanent financing for franchisees through independent third parties. PMC, however, is not currently, and does not have plans to be involved, in arranging, or have plans to arrange, franchisee financing with third parties. For franchisees participating in tile Re-licensing Program, PMC may offer to finance the initial license fee and the franchisee's purchase of equipment, fixtures, opening inventory and supplies.
Training and Assistance: PMC will provide restaurant management and operations training to the franchisee, operations director, general manager, associate manager and food production manager (or their operating equivalents; in any event not fewer than four managers). The restaurant Operations Director or general manager, an associate manager, and a food production manager must complete the training program to PMC's satisfaction before the franchisee enters in to the License Agreement. The training program generally lasts from seven to 13 weeks. On average, approximately 50% of the total training time is spent performing an on-the-job activity; the remaining time is spent reviewing written materials, performing managerial functions, preparing and implementing action plans, and discussing the training with the trainer and others. PMC will provide a New Store Opening Team (NSO Team) to assist the franchisee in all aspects of opening a new restaurant, unless the franchisee has two or more Perkins restaurants and chooses not to utilize the NSO Team. Additional training programs and refresher courses will be made available at the discretion of PMC.
Territory: The license to operate a Perkins restaurant is for a specific site only. The franchisee will not receive an exclusive territory. The franchisee may face competition from other franchisees, from outlets that owned by PMC, or from other channels of distribution or competitive brands that controlled by PMC.
Term of Agreement and Renewal: There is no set franchise term length.
Obligations and Restrictions: The franchisee must at all times maintain and exercise management control over the restaurant and its business except as maybe otherwise approved in writing by PMC. The franchisee is not required to obtain PMC's prior approval of any manager, but the management personnel must meet PMC's qualifications and have completed training. The franchisee must maintain the restaurant and provide related services in the manner and in strict accordance with the standards that PMC prescribes in the License Agreement, the Manual or otherwise. The franchisee is required to serve all menu items, including bakery products that PMC deems appropriate to take full advantage of potential markets and to achieve standardization in restaurants using the System.
Estimated Number of Units: 410
|Name of Fee||Low||High|
|Initial License Fee||$25,000||$50,000|
|Construction of Building||$600,000||$1,000,000|
|Furniture, Fixtures & Equipment||$350,000||$500,000|
|Signage (awnings, flag, exterior packages)||$35,000||$50,000|
|Interest During Construction||$25,000||$30,000|
|Licenses, Insurance and Pre-opening Advertising||$45,000||$55,000|
|Inventory, Smallwares and Uniforms||$35,000||$40,000|
|Additional funds ~ 3 months||$306,000||$501,000|
|Salaries, Lodging, Transportation for Training and Opening Team Expenses||$82,000||$104,000|
|Software License Agreement & Software Maintenance and Support Agreement||$700||$700|
|Accounting Services Agreement - 3 periods||$2,925||$2,925|
|Grand Opening Marketing Requirements||$4,000||$8,000|
|Type of Fee||Amount|
|Royalty||4% of gross sales (except in the states of Iowa and Wisconsin the royalty fee rate is 5% of the gross sales); however, if restaurant is in Re-licensing Program, then the rate is negotiable.|
|Short Term Royalty Rate Incentive Program||Year 1 royalty rate is 2%. Year 2 royalty rate is 3%. Year 3 royalty rate is the applicable rate of 4%.|
|Advertising||3% of gross sales.|
|Change of Ownership||$5,000 to $10,000, per unit plus any broker fees or commissions the franchisor incurs.|
|Local Advertising||1% of gross sales.|
|License Continuation||$5,000 to $7,500|
|Audit||Cost of audit.|
|Securities Offering||Cost to PMC.|
|Software License Agreement and Software Maintenance and Support Agreement||Software License fee is $700. And Software Maintenance and Support fee is $700 per year (beginning in year 2).|
|Accounting Services Agreement||$975 per period. Third and additional units may be eligible for reduced pricing.|
|Additional Training||Cost of Additional Training (includes salaries, lodging and transportation for trainers).|
|Mystery Shop and Quality Assurance Audits||Cost of mystery shop or audit.|
The above information has been taken from the FDD of Perkins Restaurant & Bakery. Year of FDD: 2015
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