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Tilted Kilt Franchise Cost & Fees

Date Incorporation: 2005

Franchising Since:  2006

Headquarters: Arizona

Description: The Tilted Kilt franchise system operates sports and entertainment bars and restaurants. The restaurants offer dinner entrees, traditional pub food, hamburgers, salads and pizza made with fresh, quality ingredients, accompanied by full bar service, served up by uniquely kilt-clad wait staff in a lively, Celtic-themed atmosphere with numerous large screen televisions featuring sports programming.

Franchise Offer: The franchisor is offering the right to use the Tilted Kilt marks and licensed methods to operate a Tilted Kilt restaurant. Although not required, the franchisee may also offer catering services if they meet the then current standards and specifications. Franchisees can also enter into a multi-restaurant development agreement. 

Financial Assistance: The franchisor does not provide direct or indirect financing

Training and Assistance: The franchisor will provide initial training for the franchisee and up to 4 other individuals. The training program consists of approximately four weeks of verbal, written or video classroom and on-the-job training in a Tilted Kilt restaurant at or near corporate headquarters in Tempe, Arizona.

Territory: The franchisee will be granted an exclusive territory.

Term of Agreement and Renewal: The length of the franchise term is 20 years, with an option for renew for a term of the then current franchise term.

Obligations and Restrictions: The franchisee is not required to participate personally in the direct operation of the Titled Kilt restaurant. However, the franchisee or a designated manager must be responsible for the direct day-to-day on-premises supervision of the Titled Kilt restaurant at all times during its hours of operation.

Total Number of Units: 6 outlets at the end of 2007

Total Number of franchises Units: 5 franchised outlets at the end of 2007

Investment Tables:

Initial Investment:
Expenditures Low High
Initial Franchise Fee  $50,000 $50,000
Building and Improvements $270,000  $750,000
Kitchen Equipment and Smallwares $125,000 $200,00
Furniture, Fixtures and Signs  $50,000 $150,000
Electronics  $45,000 $100,000
Point-of-Sale System, Software and Office Equipment $25,000 $45,000
Opening Inventory, Costumes and Supplies $35,000  $45,000
Security Deposits, Utility Deposits, Licenses; Related Professional Fees  $12,000 $145,000
Initial Training; Travel and Living Expenses  $10,000 $12,000
Grand Opening Promotion $7,500 $16,000
Additional Funds - 3 months $40,000 $90,000
Total Estimated Initial Investment $669,500  $1,603,000

Ongoing fees:

Name of Fee Amount
Royalty 6% of Gross Sales
Interest Lesser of 1½  % per month or highest rate of interest allowed by law
Late Charge $100 per incident
Minimum Advertising Expenditure 4% of Gross Sales reduced by any required National Advertising Contribution and any required Local Advertising Group (LAG) payments
National Advertising Contribution Up to 2% of Gross Sales
Local Advertising Group (LAG) Up to 2% of Gross Sales
Costs of Inspection and Audit Varies, with interest on any past due amounts at lesser of 1½  % per month or highest rate of interest allowed by law
Transfer Fee $15,000 per restaurant, plus $5,000 for each undeveloped franchise right under a MRD Agreement
Renewal Fee 25% of the then current initial franchise fee for a single (first) franchise
Training Program Expenses Costs associated with attending mandatory training sessions
Inventory Purchases Current published prices
Costs and Attorneys' Fees Will vary depending on nature of the default
Indemnification Under Franchise Agreement Will vary depending on nature of the claim 
Insurance Premiums Will vary depending on the location and insurer

 Date of FDD: 28/04/2008


The above information has been taken from the UFOC/FDD of Tilted Kilt

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