Cole’s Backyard Grill Franchise Costs & Fees
Date of Incorporation: 2014
Franchising Since: 2015
Headquarters: Plano, Texas
Business Description: The Franchisor is Cole’s Backyard Grill Franchising, LLC. Cole’s Backyard Grill offers a limited menu of steaks, starters, sandwiches and custom crafted salads served in a fresh atmosphere with a culinary twist. The menu features high-quality American fare including a made-to-order, fresh, Farm-to-Market Salad Bar.
Franchise Offer: The franchise is for the establishment and operation of a casual dining Cole’s Backyard Grill offering a wide variety of menu items and alcoholic and non-alcoholic beverages under the Cole’s trade name and business system.
Financial Assistance: The franchisor does not offer direct or indirect financing, and it does not guarantee franchisees’ notes, leases or other obligations.
Training and Assistance: Before the Opening Date of your Grill, your Principal Owner, District Manager (if applicable), and Grill Managers (including at least 1 front of the house manager, 1 kitchen manager and 1 business manager) must have attended and satisfactorily completed the initial management training program. The franchisor may require the Principal Owner, District Manager and Grill Managers to attend additional training programs and seminars. The franchisor has the right to charge a reasonable fee for these additional training programs and seminars.
Territory: The Franchise Agreement gives franchisees the right to operate a Cole’s Grill at a site we accept as meeting the franchisor’s site selection guidelines. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls.
Term of Agreement and Renewal: The length of the initial franchise term is 15 years. There are 2 additional 5-year terms available, if requirements are met.
Obligations and Restrictions: Franchisees must designate an individual to serve as your “Principal Owner.” The Principal Owner must meet the franchisor’s qualifications and must be approved by the franchisor. The Principal Owner for all Grills operated by franchisees and, if applicable, their affiliates, must be the same person, and the same person must act as their Principal Owner under all Franchise Agreements between the franchisor. All products franchisees use or sell at the Grill must conform to the franchisor’s standards and specifications. Franchisees must offer and sell only the menu items, products and services that the franchisor has expressly approved in writing.
Estimated Number of Units: N/A (new franchise)
|Name of Fee||Low||High|
|Initial Franchise Fee||$19,500||$29,500|
|Three Month's Rent and Security Deposit||$12,500||$40,000|
|Architectural and Engineering||$8,000||$45,000|
|Equipment, Furniture, Fixtures, and Signage||$123,125||$395,500|
|Liquor License (optional)||$0||$100,000|
|Business Licenses and Permits||$100||$3,000|
|Initial Training Costs||$30,000||$60,000|
|Computer Hardware and Software||$15,000||$20,000|
|Type of Fee||Amount|
|Royalty Fee||3% - 5% of Gross Sales.|
|Local Advertising||2% of Gross Sales.|
|Advertising Fund||Up to 1% of Gross Sales.|
|Merchandise for Resale; Equipment; Décor Items||Reasonable cost.|
|Promotions||Cost plus reasonable administrative fee.|
|Interest||Cost plus reasonable administrative fee.|
|EFT NSF Fee||The franchisor’s out-of-pocket costs and an administrative fee of $25|
|Additional Training||At the franchisor’s option, based on its costs of providing the training, for travel, food and lodging. If franchisees train at an existing franchisee’s Grill they will pay that franchisee $100 per week.|
|Securities Offering Fee||The franchisor’s reasonable costs and expenses associated with the proposed offering.|
|Buy-Out Fee||A lump sum payment equal to the sum of (a) 50% the royalty applied of the average annual Gross Sales for 2 years preceding date of termination multiplied by the number of years remaining in the term of the Franchise Agreement.|
|Accelerated Fee Payment||A lump sum payment equal to the sum of 75% of the royalty applied to the average annual Gross Sales for 2 years preceding date of termination multiplied by the number of years remaining in the term of the Franchise Agreement, discounted to present value.|
|Manual Replacement Fee||$500|
|Inspection and Testing||Cost of inspection, if applicable, and cost of test|
|Indemnification||Varies according to loss.|
|Audit Fee||Cost of audit.|
|Insurance Fee||A reasonable amount based on our expenses.|
|Enforcement Costs||Will vary.|
The above information has been taken from the FDD of Cole’s Backyard Grill. Year of FDD: 2015
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