Famous Dave's
Date Incorporation: 1994
Franchising Since: 1998
Headquarters: Minnesota
Description: A Famous Dave's Restaurant features high-quality foods with a full table service in a casual, comfortable and fun environment. Famous Dave's Restaurants serve hickory-smoked spareribs, baby back ribs, beef brisket, herb-roasted chicken, barbecue sandwiches, char-grilled burgers, cornbread, potato salad, coleslaw, Wilbur beans, desserts and other food and beverage items.
Franchise Offer: 2 types of franchise:
i.) Single unit – offers the franchisee the right to operate a single Famous Dave's authentic barbecue restaurant under the name "Famous Dave's®".
ii.) Area Development Agreement - franchisee must develop an agreed number of Famous Dave's Restaurants, within an agreed upon period of time, in a designated geographic area called a ‘Territory’.
Financial Assistance: The franchisor does not offer direct or indirect financing.
Training and Assistance: Famous Dave's will train the franchisee for a minimum of four shifts, the director of operations for a minimum of 20 shifts, and the management staff for a minimum of 35 shifts. All training programs will be held at a certified training location designated by Famous Dave's. The training program will include 11 hours of classroom and 280 hours of on-the-job instruction.
Territory: The franchise will operate out of a single franchised location within a designated area. The designated area will be the area within a five-mile radius of the franchised location.
Term of Agreement and Renewal: The length of the franchise term is 20 years, with an option for renew for one additional period of 10 years.
Obligations and Restrictions: Famous Dave's recommends, but does not require the franchisee to participate in the operation of the Famous Dave's® Restaurant.
Total Number of Units: 164 outlets at the end of 2007
Total Number of franchises Units: 120 franchised outlets at the end of 2007
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Initial Fee | $40,000 | $40,000 |
| Leasehold Improvements | $500,000 | $1,000,000 |
| Travel and Living Expenses for franchisor and their Management Staff During Training | $15,000 | $40,000 |
| Reimbursement of Expenses for Opening Team | $40,000 | $60,000 |
| Furniture, Fixtures, Decor and Equipment | $410,000 | $480,000 |
| Architectural and Engineering Fees | $20,000 | $60,000 |
| Signs | $28,000 | $59,500 |
| Liquor License Costs | $5,000 | $50,000 |
| Restaurant Lease Payments -3 Months |
$24,000 | $55,000 |
| Employee Salaries - 3 Months | $67,000 | $93,000 |
| Miscellaneous | $8,000 | $22,000 |
| Grand Opening Celebration | $10,000 | $30,000 |
| Additional Funds - 3 Months [these figures have not been offset by operating revenues] | $10,000 | $35,000 |
| Total if premises leased | $1,177,000 | $2,024,500 |
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| Monthly Royalty fees | 3% to 5% of monthly revenues |
| Marketing Fund fees | 1% of monthly Revenues |
| Extension Fee | $7,000 per month |
| Audit Fees | Amount incurred by Famous Dave's to audit Restaurant business, estimated to range from $1,000 to $10,000 |
| Assignment Fee | $5,000 |
| Collection Costs | Amount incurred by Famous Dave's to collect unpaid fees |
| Interest Charges | The lesser of 18% per annum or the maximum legal rate allowable by applicable law |
| Training | Franchisee must reimburse Famous Dave's for its Travel Expenses, estimated to range from $100 to $l,000 per person |
| Relocation Fee | $5,000 |
| Reacquisition Fee | 50% of the Initial Fee in the then-current standard Franchise Agreement |
| Local Advertising | Minimum of 1.1% of quarterly Revenues; Minimum of 1.5% of yearly Revenues |
| Review of Un approved Supplier | You must reimburse Famous Dave's for the expenses it incurs inspecting an unapproved supplier, estimated to range from $500 to $3,000 |
| Remodeling Costs | The amount you incur to remodel your Franchised Location. These costs may range from $100,000 to $400,000 each time you remodel. |
| Recruitment Fees | $50,000 for a director of operations, an area director or franchise consultant, $20,000 for a general manager or director level corporate associate, $10,000 for an assistant manager or manager level corporate associate, or $2,500 for an "active opening units" trainer |
| Independent Shopping Service or Interactive Voice Response Guest Feedback Evaluation Costs | One-half of the cost of set programs, estimated to range from $200 to $1,000 per month |
| National Convention Fee | The then-current National Convention Fee; currently $600, plus expenses estimated to range from $1,000 to $2,000 per person |
| Site Model Report Fee | $750 |
| Costs, Expenses and Attorneys' Fees | Variable |
The above information has been taken from the UFOC/FDD of Famous Dave’s
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