Rib City Grill
Date Incorporation: 2001
Franchising Since: 2001
Headquarters: Florida
Description: The Rib City Grill restaurant concept is directed toward the value conscious food consumer, offering attractive restaurants featuring quality BBQ food at competitive prices.
Franchise Offer: The Rib City Grill restaurant license is available in areas where there is no existing Rib City restaurant and there is no pre¬existing agreement preventing the franchisor from granting a license. The license may be granted for new or conversion Rib City restaurants.
Financial Assistance: The franchisor does not offer direct or indirect financing.
Training and Assistance: The franchisor will train the franchisee or the designated representative during a 2 week training program in Fort Myers, Florida and train the kitchen manager during a 1 week training program at another Rib City restaurant in Florida. The training program is mandatory and is at the expense of the franchisee.
Territory: The franchisee will not receive an exclusive territory, unless they participate in the registered territory program. The franchisee may apply for exclusive territory rights under the registered territory program, by submitting an application, along with an application Fee of $10,000.
Term of Agreement and Renewal: The length of the franchise term is 20 years, with an option for renew for terms of 5 years for up to 15 successive years.
Obligations and Restrictions: The franchisor recommends but does not require that the franchisee personally provides direct, on-premise supervision of the Rib City restaurant operations, although such supervision must be provided by a designated manager, who has successfully completed the training program.
Total Number of Units: 26 outlets at the end of 2007
Total Number of franchises Units: 14 franchised outlets at the end of 2007
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Initial Franchise Application Fee | $5,000 | $5,000 |
| Entry Fee | $35,000 | $35,000 |
| Travel & Living expenses while training | $2,500 | $5,000 |
| Construction | $35,000 | $255,000 |
| Design Fee | $4,000 | $6,000 |
| Soil Tests | $3,000 | $3,000 |
| Landscaping | $ 5,000 | $10,000 |
| Market Study | $4,000 | $5,500 |
| Environmental Study (Phase I) | $3,000 | $5,000 |
| Signs | $13,000 | $27,000 |
| Miscellaneous Opening Costs | $5,000 | $25,000 |
| Opening Inventory | $5,000 | $15,000 |
| Advertising/Marketing (3 Months) | $15,000 | $15,000 |
| Additional Funds | $25,000 | $50,000 |
| Insurance (Prepaid) | $10,000 | $10,000 |
| Operating Equipment | $125,000 | $ 165,000 |
| Point of Sale Equipment | $15,000 | $20,000 |
| Fixtures, Furniture and Decor | $20,000 | $30,000 |
| Total | $329,500 | $686,500 |
| RTP Application Fee | $10,000 | $10,000 |
| RTP Entry Fee | $60,000 for the first Rib City Restaurant, $20,000 for each subsequent Rib City | $60,000 for the first Rib City Restaurant, $20,000 for each subsequent Rib City |
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| Royalty | 4% of total Gross Sales but in no event less than $5,500 per year |
| Cooperative Advertising/ Marketing Fee | 1% of total gross sales |
| Transfer, Assignment of License | $15,000 |
| Minor Improvements | Not in excess of $15,000 |
| Major Improvements | Not in excess of $25,000 |
| Additional Training | $300 to $500 per day per person plus expenses |
| Late Fee | 1.5% of unpaid balance |
| Termination Fee | Greater of $60,000 plus taxes or aggregate of weekly royalties accrued over the 24 full calendar months immediately preceding the termination. Ifyou terminate the Letter of Commitment, then the fee is $10,000. |
| Audits | Cost of audit plus interest on underpayment |
| Relocation Fee | 5% of then current Franchise Fee |
| Costs and Attorney's Fees | Will vary under the circumstances |
| Indemnification | Will vary under the circumstances |
Date of FDD: 01/05/2008
The above information has been taken from the UFOC/FDD of Rib City Grill
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