Baker Bros American Deli
Date Incorporation: 1998
Franchising Since: 2000
Headquarters: Texas
Description: Baker Bros American Deli is a counter-service restaurant featuring a menu of specialized sandwiches, soups, salads, baked potatoes, and pizza.
Franchise Offer: The franchisor offers 2 types of agreement:
Single franchise: The franchisee will operate a Restaurant under the franchisor's comprehensive under the trade name and service mark "Baker Bros American Deli" system.
Multi-franchise: Under the Development Agreement, the franchisee must develop two or more Restaurants within an agreed on area, the development area, according to a development schedule.
Financial Assistance: No financing is available through the franchisor not their affiliates.
Training and Assistance: An initial training program is offered to the franchisee, the director of operations, general manager, and two secondary managers and is held in the franchisor's restaurant in Dallas, Texas. The franchisee's management and the other restaurant personnel that may be designated by the franchisor must attend the additional training programs and seminars offered. The training will take approximately 40 to 45 days to complete.
An opening crew composed of up to four trained representatives will be sent to the franchisee's location prior to opening. The opening crew will provide on-site pre-opening and opening training, supervision, and assistance to the franchisee for a period of up to seven days.
Territory: When the franchisor approves the location of the franchised restaurant both parties will agree on an assigned area surrounding the restaurant. During the term of the Franchise Agreement, the franchisor and their affiliates will not establish or authorize any other person or entity to establish restaurants within the assigned area.
Term of Agreement and Renewal: The term of the franchise agreement is 10 years. It is possible to renew the franchise for 2 additional successive five-year terms under certain conditions.
Obligations and Restrictions: Either the franchisee or a general manager must supervise the day to day operation of the restaurant. The franchisee must sell all menu items, food products, and other products and services required, including dining-in, carry-out, catering and delivery.
Total Number of Units: 16 units by year end 2007
Total Number of franchises Units: 8 franchised units by year end 2007
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Franchise Fee | $25,000 | $25,000 |
| Leasehold Improvements | $200,000 | $330,000 |
| Tenant Improvement Allowance | $37,500 | $90,000 |
| Furniture, Fixtures and Equipment | $120,000 | $150,000 |
| Initial Inventory (Food, Paper, Beverages, Smallwares, Uniforms) | $25,000 | $30,000 |
| Point of Sale Computer Hardware and Software | $20,000 | $30,000 |
| Pre-Opening Salaries, Travel, Lodging, Meals | $25,000 | $50,000 |
| Supplies (stationery, business cards, etc) – for 3 months | $1,000 | $3,000 |
| Business Permits | $3,000 | $6,000 |
| Insurance Deposits | $4,000 | $7,000 |
| Site Lease | $5,000 | $15,000 |
| Architect and Engineering Fees | $15,000 | $30,000 |
| Utility Deposits | $1,000 | $5,000 |
| Advertising and Promotion | $1,000 | $5,000 |
| Signage | $8,000 | $20,000 |
| Additional Funds (3 months) | $15,000 | $40,000 |
| Total | $430,500 | $656,000 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Royalty Fee | 5% of Gross sales. |
| Advertising | Up to 4% of Gross Sales |
| Advertising and Promotional Materials | Varies, depending on your advertising needs; 0% -2% of Gross Sales |
| Intranet Development and Maintenance | Up to $225 per month per Restaurant |
| Renewal Fee | $5,000 |
Date of FDD: June 20 2008
The above information has been taken from the UFOC/FDD of Baker Bros American Deli
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