Boneheads
Date Incorporation: 2004
Franchising Since: 2005
Headquarters: Georgia
Description: Bonehead’s Seafood operates fast casual restaurants offering fresh seafood dishes, other food products, beverages and related services under the service mark ‘Boneheads’. In connection with the Boneheads Restaurant concept, the franchisor has developed various specialty food products (e.g., piri piri chicken, piri piri shrimp, wings piri piri, etc.) which they may sell under the Boneheads brand.
Franchise Offer: The franchisee must enter into a market development agreement and develop, open and operate an agreed upon number of Bonehead’s Seafood restaurants located in an area of responsibility. The franchisee must enter into a development agreement even if they will establish only one restaurant.
Financial Assistance: The franchisor does not offer any direct or indirect financing to the franchisee.
Training and Assistance: The training program will last a minimum of 4 weeks and will be comprised of Raving Brands University, classroom training and in-restaurant training in a Boneheads approved facility. Training will occur at a training facility in Atlanta, Georgia. Two managers per restaurant must attend and successfully complete the initial training.
Territory: The development agreement will specify an area of responsibility within which the franchisee can focus their development efforts. Under the development agreement, the franchisee is not granted a territory, exclusive or otherwise, within which to develop restaurant(s). The franchisee may establish a restaurant at any location within the area of responsibility provided that the franchisor has consented to the location.
Term of Agreement and Renewal: Not Available
Obligations and Restrictions: The franchisee must maintain direct responsibility over the restaurant; however, it is not required that they personally supervise the day-to-day operations of the restaurant. During operations hours, a manager who has successfully completed the initial training program must at all times be at the restaurant. The managers must directly supervise and be responsible for the day-to-day management and proper operation of the restaurant.
Total Number of franchises Units: 5 franchised outlets at the end of 2006
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 for each Restaurant | $25,000 for each Restaurant |
| Rent | $3,000 | $12,000 |
| Security Deposit | $3,000 | $10,000 |
| Real Estate and Improvements | $150,000 | $320,000 |
|
Travel and Living Expenses while Training (See Note 5) |
$5,000 | $10,000 |
| Furnishings, Fixtures, Equipment and Decorating | $125,000 | $135,000 |
| Signage | $4,000 | $12,000 |
| Opening Inventory | $9,000 | $14,000 |
| Computer Hardware/Software | $10,000 | $20,000 |
| Grand Opening | $15,000 | $18,000 |
| Professional Fees | $2,000 | $5,000 |
| Insurance | $10,000 | $24,000 |
| Miscellaneous Opening Costs | $10,000 | $25,000 |
| Additional Funds - 3 months | $20,000 | $50,000 |
| Total Estimated Initial Investment | $391,000 | $680,000 |
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| Royalty Fee | 5% of Gross Sales |
| Advertising Fund Fee | 2% of Gross Sales |
| Advertising Cooperatives | If we establish cooperatives, the franchisee must contribute a percentage of Gross Sales to cooperative, which may not exceed 2% of Gross Sales |
| Local Advertising | A minimum of 2% of Gross Sales |
| Advertising Deficiency | Amount of Local Advertising Deficiency |
| Renewal Fee | The amount of the then-current initial franchise fee |
| Transfer/ Assignment Fee under franchise Agreement | One-half the amount of the then-current initial franchise fee |
| Interest and Late Payment Fees | Up to the highest rate permitted by law but no more than 18% per annum plus $100 per occurrence |
| Insufficient Funds Fee | $100 per occurrence |
| Late Report Fee | $100 per occurrence |
| Audit Expenses | Will vary under the circumstances |
| Additional On-Site Training due to Failure to Maintain Standards' | $300 per day plus reimbursement of trainers expenses |
| Counseling and Advisory Services | Will vary under the circumstances |
| Additional On-Site Training and Assistance | Reasonable fee under the circumstances (e.g. $300 per day) plus the reimbursement of travel and living expenses and other related expenses. |
| Indemnification | Will vary under the circumstances |
| Insurance Premiums | Will vary under the circumstances |
| Conferences | Reasonable fee under the circumstances, which we expect will not be more than $500 per person |
| Costs and Attorneys' Fees | Will vary under the circumstances |
| Product/Supplier Approval Costs | Cost of testing not to exceed $500 |
| Management Fee | 10% of Gross Sales plus our reasonable costs and expenses |
| Reimbursement of Costs and Expenses regarding Modification of Franchise Agreement | Costs and attorneys' fees |
| Liquidated Damages | Will vary under the circumstances |
| Maintenance, Service, and Support Contract Fees | To be determined |
The above information has been taken from the UFOC/FDD of Bonehead’s
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