Long John Silver's
Date of Incorporation: 1969
Franchising Since: 1969
Headquarters: Louisville, Kentucky
Country: U.S.
Description: Long John Silver's (sometimes referred to as “LJS”), part of YUM! Brands, is a United States-based fast-food restaurant that specializes in seafood. Long John Silver's Restaurants offer a limited menu featuring fish, seafood, chicken and related items. The Restaurants are designed to serve food promptly and offer dine-in, take-out and in a significant number of Restaurants, drive-thru service.
Franchise Offer: The Long John Silver's offers franchises in venues such as freestanding, single-use restaurant buildings, in-line strip mall or strip center shopping locations, and power pumper stores (sometimes collectively referred to as "Restaurants" or "LJS Restaurants"). Under a different franchise agreement, Long John Silver’s also offers licenses to operate LJS Express Units in so-called "captive audience" locations such as military bases, colleges and universities, airports, interior mall locations and similar venues.
Financial Assistance: The franchisor does not offer any direct or indirect financing nor do they guarantee any note, lease or obligation.
Training and Assistance: Long John Silver’s will provide a pre-opening management training program at locations and for periods of time as Long John Silver’s designates. The opening manager for the Express Unit and such other employees as Long John Silver’s deems necessary must be certified by completing training in a certified Long John Silver’s training restaurant. Additional training classes may be offered or required for restaurant management teams and store managers.
Territory: The Franchise Agreement will authorize the franchisee to operate one Restaurant at a specified address. LJS will not operate or franchise others to operate a Restaurant within a specified geographic area surrounding the franchisee’s Restaurant. LJS determines the Territory in its sole discretion and may base, its determination on anticipated customer counts and other factors. The Territory will be specified in the franchisee’s Franchise Agreement. Otherwise, the Territory is typically a one and one-half mile radius from the franchisee’s Restaurant. If your Restaurant is in a convenience and gas store, the Territory is generally a one mile radius from your Restaurant. LJS generally does not grant any protected Territory for Express Units.
Term of Agreement and Renewal: The term of the agreement is generally 20 years with two five-year options or concurrent with lease term not to exceed a total of 30 years.
Obligations and Restrictions: The franchisee does not have to participate personally in the direct operation of the franchised Restaurant, but LJS strongly recommends direct personal participation. If the franchisee will not personally supervise Restaurant operations, at least one on-premises supervisor ("manager") must be designated. The manager, and such other of employees as LJS designates, must successfully complete LJS's training programs. Managers are not required to have any ownership interest in the Restaurant, but restrictions must be placed on managers and other employees to make sure they do not disclose or misuse the proprietary information contained in the Reference System or otherwise communicated to you by LJS. The franchisee may sell only those food and beverage products that LJS designates in the Reference System and meet the standards contained in the Reference System.
Total Number of Units: More than 1,000 units.
Investment Tables:
Initial Investment:
| Name of fee | Low | High |
|---|---|---|
| Initial License Fee | $5,000 | |
| Architectural Fee | $1,500 | |
| Training Expenses | $6,000 | $25,000 |
| Real Estate | Not included | |
| Architectural Fees & Permits | $5,000 | $30,000 |
| Leasehold Improvements | $41,500 | $166,500 |
| Signage | $8,300 | $26,000 |
| Furniture, Fixtures and Equipment | $46,800 | $156,000 |
| Start-up Inventory | $10,000 | $15,000 |
| Security Deposit, Utilities Deposits, Licenses and Other Prepaid Expenses | $3,000 | $30,000 |
| Additional Funds | $50,000 | $175,000 |
| Total | $177,100 | $630,000 excluding real estate |
Ongoing Fees:
| Name of fee | Amount |
|---|---|
| License Fee | 6.5% to 10% of "Gross Receipts" |
| Advertising | Long John Silver’s may use a portion of the 10% license fee to develop and administer advertising programs. |
| Training Materials and Fees | Long John Silver’s actual costs |
| Cost of Testing Products and Equipment | Long John Silver’s actual costs |
| New Restaurant Opening Training Labor Costs | Long John Silver’s actual costs |
| Additional Training | About $200 per day plus travel costs |
| Transfer | A fee determined by Long John Silver’s at its discretion |
| Audit | Interest on any understated or underpaid amount, at 1.5% per month, and, if understatement or underpayment is 5% or more, costs and expenses of audit, including travel expenses, accounting and legal fees. |
| Late Fee | The lesser of (i) the maximum permitted by Kentucky law or (ii) 1 ½% per month from the due date until paid. |
| Indemnification | Will vary. |
| Attorney's Fees and Costs | Long John Silver’s actual costs |
| Support Services Agreement Fees (Optional) | Varies according to services and one-time charges |
| Cure Fee | $1,000 |
Date of FDD: 2009
The above information has been compiled from the FDD of Long John Silver’s along with online sources.
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