Dickey's Barbecue Pit Franchise Costs, Fees & FDD

Year Business Began: 1941

Franchising Since: 1994

Headquarters: Plano, Texas

Estimated Number of Units: 375

Franchise Description: The franchisor is Dickey's Barbecue Restaurants, Inc. The franchisor sells franchises to operate, under the name and mark “Dickey's Barbecue Pit,” restaurants specializing in freshly prepared barbecue style meats and other food products. The franchisor offers franchises for the following types of restaurants: (i) traditional restaurants, (ii) non-traditional restaurants, including mobile unit franchises, and (iii) delivery-carryout restaurants.
Training Overview: Not later than 60 days before the opening date of the restaurant, the owner/operator must have completed, to the franchisor’s satisfaction, training at its Barbecue University. Each participant that attends Barbecue University must satisfy the then-current requirements for admission to Barbecue University. Barbecue University for the owner/operator, and if applicable, any additional managers or personnel approved by Dickey’s, will be conducted at Dickey's corporate training center (currently in Plano, Texas) and/or at a company-operated restaurant or another location designated by Dickey's. Currently, all such locations are in the North Texas area. In addition to Barbecue University, as part of Dickey’s training program, the franchisor will provide training for up to three restaurant managers, which will be completed online, and certification will occur just before the restaurant’s opening. In connection with the opening of the restaurant, the franchisor will provide franchisees with at least one trained representative of Dickey’s to provide on-site training, supervision and assistance, with respect to such matters and for such period of time determined by the franchisor in its sole discretion. The owner/operator and their employees may attend such additional or remedial training programs and seminars as the franchisor may offer.

Territory Granted: The Franchise Agreement grants to franchisees the right to operate a restaurant at a single location selected by the franchisee and approved by the franchisor. The restaurant will be located within a designated geographic area (the assigned area) as described in the Franchise Agreement. At such time as franchisees propose and the franchisor accepts the proposed restaurant location identified by a specific street address within the assigned area so that it becomes the “accepted location,” the assigned area will automatically and without further writing be reduced to an area within a one-mile radius of the accepted location (the primary area). Franchisees must offer delivery services from the restaurant if one of the franchisor’s designated third-party delivery providers offers delivery services in the assigned area. When and if the assigned area converts to the primary area, the franchisor will not, except as provided in the FDD and as long as franchisees are in full compliance with the Franchise Agreement, establish and operate or license or authorize any other party to establish or operate a Dickey's Barbecue restaurant within the primary area for the balance of the term of the Franchise Agreement.

Obligations and Restrictions: Franchisees must designate and retain an individual to serve as the “owner/operator” under the Franchise Agreement. Franchisees must designate the owner/operator at the time they sign the Franchise Agreement. The owner/operator must meet certain qualifications. Franchisees must use the restaurant’s premises solely for the operation of the restaurant. Franchisees must maintain business hours as provided for in the manuals or as the franchisor may specify in writing. Franchisees may not use or permit the use of the premises for any other purpose or activity at any time without first obtaining the written consent of the franchisor. Franchisees must operate the restaurant in strict conformity with such methods, standards and specifications as required by law and as the franchisor may prescribe in the manuals or otherwise in writing.

Term of Agreement and Renewal: The length of the initial franchise term is 20 years for traditional restaurants or 10 years for non-traditional restaurants, mobile unit franchises, and delivery-carryout restaurants (subject to periodic remodeling). If franchisees are not in default and meet the requirements, they can renew the franchise for 10 additional years.

Financial Assistance: The franchisor does not offer direct or indirect financing. Upon request, the franchisor will refer franchisees to independent lenders who may finance some portion of the initial investment. Additionally, the franchisor does not guarantee a franchisee’s note, lease or any other obligation.

Estimated Initial Investment

Name of Fee	Low	High
Franchise Fee	$15,000	$20,000
Architectural Plans	$8,000	$25,000
Permits	$1,400	$15,000
Leasehold Improvements	$100,000	$350,000
Furniture, Fixtures, and Equipment	$70,000	$160,000
Graphics	$1,000	$6,000
Digital Menu Boards	$3,600	$4,700
Signage	$8,000	$20,000
Point of Sale Computer and Technology in A Box	$6,000	$7,500
Tenant Improvements (potential landlord credit/rent abatement)	($20,000)	($92,000)
Lease Deposits	$0	$15,000
Training	$1,800	$3,550
ServSafe Training	$0	$185
Barbecue University Enrollment Fee	$30	$30
Opening Inventory and Services	$5,000	$8,000
Insurance	$0	$12,000
Restaurant Opening Promotion	$375	$11,500
Professional Fees	$1,500	$2,000
Closing and Finance Costs	$0	$15,000
Smokestack Sales Reporting System Software Fee	$200	$200
Spark Online Ordering Fee	$596	$596
Spark POS SaaS Fee	$572	$572
Technology Support Fee	$1,415	$3,139
Chowly Fees	$117	$117
Printer Cost	$500	$500
Cloud Computing	Up to $690
Additional Funds – 3 Months	$15,000	$30,000
ESTIMATED TOTAL (before potential rent abatement)	$220,105	$618,589

 
Other Fees

Type of Fee	Amount
Royalty	6% of net sales.
Marketing Fund	3% of net sales.
Spark POS SaaS Fee	Currently, $149 per month.
Technology Support Fee	Currently between $280 and $304 per month.
Smokestack Sales Reporting System Software Fee	$58 per month for the first restaurant plus $40 per month for each additional restaurant and each manager with access to the system; $100 annual infrastructure support fee per restaurant.
Spark Online Ordering Fee/Mobile Unit Software	$157 per month.
Spark POS – Maintenance/License Fee – Mobile Unit Franchise Only	$2.08 monthly or $25 per year.
Mobile Unit Franchise Hardware	Approximately, $2,500.
Chowly Monthly Fee	$39 per month.
Insurance	Premiums vary depending on location.
Payments to Landlord and Utility Providers	Vary depending on location.
Unapproved Insurance Vendor Review Fees	$350 for costs of reviewing insurance coverages procured by proposed vendor; additional $150 for each subsequent review of insurance coverages due to insufficient coverage or changes.
Training Instruction and Materials	$1,800 for the owner/operator to attend Barbecue University; $800 per person for any additional managers or personnel that attend Barbecue University; $3,000 for online and onsite training for up to 3 managers, which includes manager certification.
BUO Training Program Enrollment	$10 per month.
Audit	Cost of audit plus interest.
Site Evaluation Fee and Costs	All of the franchisor’s reasonable costs and expenses plus a site evaluation fee of $1,000.
Product and Service Purchases	Varies.
Testing	The cost of inspection and testing.
Inspection	The cost of inspection and correcting any deficiencies.
Replacement or Update of the Manuals or Other Forms Used in Running the Restaurant	Actual cost of replacement or update and delivery of manuals or other forms necessary for running the restaurant.
Transfer	Greater of $15,000 or the franchisor’s reasonable costs and expenses.
Renewal	$15,000
Securities Offering Review	$1,000 or the franchisor’s costs incurred for review of offering materials, whichever is greater.
Management Fee	5% of net sales, plus pass through costs and expenses.
Indemnification	Actual legal fees, costs and expenses.
Interest	15% or maximum rate allowed by law, whichever is less.
Late Fee	Actual legal fees, costs and expenses.
Insufficient Funds Processing Fee	$40
Legal	Actual legal fees and expenses.
Termination	Liquidated damages equal to the present value of the royalty for the number of months remaining in the term of the Franchise Agreement, not to exceed 60 months.
Non-Compliance Fee	$500 to $2,000 for deviations from operational requirements/standards and specifications.
Customer Complaint Reimbursement	Out-of-pocket cost reimbursement.
Online Ordering Non-Compliance Fee	$50 per occurrence.

The above information has been compiled from the FDD of Dickey's Barbecue Pit. Year of FDD: 2025.
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