Nathan's Famous Franchise Cost & Fees

Date of Incorporation: 1916

Franchising Since: 1975

Headquarters: Jericho, New York

Business Description: Nathan's Famous Systems, Inc., offers and sells franchises for "Nathan's Famous" restaurants, which are fast-service restaurants which feature hot dogs made with a proprietary spice formula as well as crinkle-cut french fries, hamburgers, assorted sandwiches, platters, and other fast-service menu items. The franchisor also offers and sells franchises which permit the addition of "Nathan's Famous" hot dogs and crinkle-cut french fries to the menu of other food service establishments called Frank & Fry operations.

Franchise Offer: If the franchisor approves the application to become a "Nathan's Famous" franchisee, the franchisee will be granted the right, and will accept the responsibility, to establish and operate a Restaurant at an agreed-upon location. If the franchisee wishes to participate, the franchisor may also approve his or her application to include an Arthur Treacher's Co-Branded Operation within the Nathan's Famous Restaurant. Any of these can be a free-standing restaurant, a Food Court or In-line Unit, or a kiosk. If the franchisor approves the application to add a Frank & Fry Operation to the new or existing food service establishment, the franchisee will be granted the right, and will accept the responsibility, to establish and operate a Frank & Fry Operation at an agreed-upon food service establishment.

Financial Assistance: Neither the franchisor nor any agent or affiliate offers direct or indirect financing, guarantees any note, lease or obligation, or have any practice or intent to sell, assign, or discount to a third party all or part of any financing arrangement of the franchisee's.

Training and Assistance: The franchisor will provide an initial training program, at a designated location, for the franchisee and the franchisee’s management employees. At least three of the management employees must complete the training to satisfaction before the franchisee may open the Restaurant. If the franchisee us adding a co-branded concept to the Restaurant, the training will include all subjects necessary to the co-branded concepts. The franchisor will provide ongoing training deemed appropriate.

Territory: The franchisee will not receive an exclusive territory. He or she may face competition from other franchisees, from outlets that owned by the franchisor, or from other channels of distribution or competitive brands that controlled by the franchisor.

Term of Agreement and Renewal: The length of the term of the franchise is twenty years. Under a Kiosk Amendment, the initial term of the Franchise Agreement will be ten years. The franchisee can renew for one additional term which will be the greater of fifteen years or the same as the then-current initial term. Under a Kiosk Amendment, the renewal period will be ten years.

Obligations and Restrictions: During the term of the Franchise Agreement, the franchisee or the franchisee’s designated general manager must devote full time and best efforts to the management and operation of the Restaurant. Either the franchisee or the designated general manager must, at all times, provide on-site supervision of the Restaurant. The franchisee must sell only those menu items, products, and services expressly approved in writing and which meet the franchisor's current standards as established in the Manual or otherwise in writing. The franchisee must not sell any other kind of service or product without first obtaining written consent.

Total Number of Units: 270

Selected Investment Costs:

Franchise Fee: $30,000

Estimated Initial Investment Range: $276,360 - $1,040,360

Royalty: 5.5% of Annual Gross Sales

Advertising: up to 2% of Annual Gross Sales
 

The above information has been taken from the UFOC/FDD and online sources of Nathan's Famous.

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