Perkins Restaurant & Bakery Franchise Costs, Fees & FDD

Year Business Began: 1958

Franchising Since: 1965

Headquarters: Sandy Springs, Georgia

Estimated Number of Units: 260

Franchise Description: Perkins LLC is the franchisor. Perkins restaurants are full-service restaurants that serve all meals and menu items at all times to customers for on-premises and personal carry out consumption and for off-site catering services and delivery service within the territory of the restaurant or other pre-approved geographic areas conducted in accordance with the franchisor’s standards and specifications. Perkins restaurants offer a broad menu of breakfast, lunch and dinner entrees.
Training Overview: The franchisor will provide to franchisees and/or their designated manager up to 25 total days of training (and such additional time that the franchisor deems necessary) in the operation of their franchise. Before they begin operating their franchise, franchisees and any managerial personnel that are designated or approved by Perkins personnel must complete to the franchisor’s reasonable satisfaction all training programs that Perkins reasonably requires. Training is typically conducted at a Perkins restaurant that the franchisor designates for use in training. In addition to the training, the franchisor may offer and conduct an orientation program for new franchisees and other franchisees for whom it thinks the program will be beneficial. Additionally, franchisees and/or their manager and other management employees must also attend additional courses, seminars, and training programs that the franchisor reasonably requires from time to time. The franchisor may also conduct an annual conference for operators of Perkins units. The franchisor may require franchisees (or one of the franchise entity’s owners) to attend the annual conferences.

Territory Granted: Franchisees must operate their franchise from a specific location, which (for a new development unit) must be accepted by the franchisor, and franchisees may not relocate their franchise without the franchisor’s permission. The franchisor does provide franchisees with certain protections in their territory. During the term of the Franchise Agreement, and except as otherwise provided in that agreement, the franchisor will not establish nor license anyone else to establish, another Perkins restaurant at any location within the territory that is designated in the Franchise Agreement. The territory will be based on a particular area surrounding the unit. The franchisor expects that the size of the territories granted for new franchises will vary from franchise to franchise, but will typically be approximately one-half mile for an urban location, two miles for a suburban location, and up to three miles for locations beyond suburban areas.

Obligations and Restrictions: The franchise must be operated either by the franchisee or by a designated manager. The franchisor recommends that franchisees personally supervise the operation of their franchise. Additionally, during the first two months the franchised business is open to the public, franchisees or (if the franchisee is an entity) one of the owners with at least 10% equity in the franchisee entity must serve as an on-premises designated manager for a minimum of 30 peak operating hours per week. Franchisees must not use the premises of their Perkins restaurant for any other purpose or activity that is not provided for in the Franchise Agreement. Any manager hired may not establish, participate in the operation of, or own an interest in any other restaurant that serves breakfast at times other than the hours of 6:00 a.m. - 11:00 a.m. while such manager is employed in any capacity with the franchise. If franchisees are a corporation or other entity, the franchisor will require the shareholders or members holding at least 5% ownership interest, and each of their spouses (if applicable), to execute a guaranty. Franchisees must offer and sell all products designated by the franchisor and they may not sell any product (food or non-food) that is not designated by the franchisor. Franchisees must keep their Perkins restaurant open and in normal operation during the times that the franchisor specifies as mandatory hours of operation, which the franchisor may periodically change.

Term of Agreement and Renewal: The length of the initial franchise term is 20 years for a traditional unit and 10 years for a non-traditional unit. If franchisees have complied with the Franchise Agreement and met other conditions at the time of each renewal date, they can renew for a 10-year term.

Financial Assistance: In some circumstances for new development units, the franchisor may finance a portion of the initial franchise fee. Otherwise, the franchisor does not offer direct or indirect financing to its franchisees. The franchisor participates in the International Franchise Association’s VetFran program, providing a 25% reduction in the initial franchise fee due under Perkins’ single unit Franchise Agreement for new development units only.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$15,000	$40,000
Training Fee and Travel and Living Expenses While Training	$20,000	$60,000
Real Estate – Rent for First 3 Months	$0	$60,000
Improvements	$150,000	$2,300,000
Interest During Construction	$0	$30,000
Equipment and Seating	$160,000	$650,000
Signs and Décor	$15,000	$82,000
Site Plan/Engineering Drawings	$8,000	$35,000
Travel Expenses for Opening Guide Meeting	$0	$750
Smallwares, Opening Inventory and Uniforms	$40,000	$75,000
POS System	$15,500	$20,500
Help Desk (first 3 months)	$215	$375
Hardware and Software Components - Computer Security	$5,000	$7,000
Other Computer and Technology Expenses (first 3 months)	$675	$1,125
Grand Opening Promotion	$5,000	$15,000
Miscellaneous Opening Costs	$45,000	$55,000
Additional Funds – 3 Months	$100,000	$150,000
ESTIMATED TOTAL	$579,390	$3,581,375

 
Other Fees

Type of Fee	Amount
Royalty	4% of net sales.
Contribution to Advertising Fund	3% of net sales (for traditional); and 1% of net sales for a non-traditional unit within a host facility.
Local Advertising Requirement	1% of net sales.
Transfer	Varies - 25% of Perkins’ then-current initial franchise fee, or $2,000, or no fee.
Interest on Rent	5% per month on overdue amount.
Interest on Payments (other than rent)	Lesser of 18% (per annum) per annum or maximum legal rate.
Management	8% of net sales.
Liquidated Damages – Breach and Termination	$300,000 or three years of estimated royalties and marketing contributions, whichever is greater.
Fees Relating to Computer System, Software, and Technology Services	Will vary.
Central Billing Fee	Will vary, but not currently in effect.
Non-Participation/Non-Reporting Fee	$100 for 1st month; $200 for 2nd month; $300 for 3rd and each subsequent month.
Re-evaluation Fee	$350 per failed inspection/review (beginning with a second consecutive failure).
Delinquent Report	$10
Audit	Interest at 12% or highest rate allowed by law, if higher.
Renewal	25% of the then-current initial franchise fee.
Perkins Performance	Reimbursement of amount plus 12% interest (or highest rate allowed by law if to pay creditors).
Additional or Refresher Training and Orientation	Currently $300 per day for the franchisor’s current additional or refresher training programs, but may change in the future.
Extension of Opening Deadline or Deadline in Development Schedule	$5,000 per month that the deadline is extended for a traditional unit, or $2,500 for a non-traditional unit.
Extension of Term of Development Agreement	Varies - $7,500 per additional year, per unit in development schedule.
Fee for Closing During Any Required Hours of Operation	$1,000 per day that the Perkins restaurant is not open during all required hours of operation.
Rejected Payment Fee	$100 per occurrence, plus any further amounts necessary to reimburse the franchisor for actual costs.
Lease Review	Up to $2,500.
Fees for Financial Report	Not currently charged.
Fee for Non-Attendance at Conferences	$2,500
Unit Hours Modification Fee	Varies – up to 7% of the base amount, which will be determined as the unit’s net sales during the immediately preceding 52-week for the hours being modified.
Customer Feedback Program	Will vary. Currently includes an annual fee (which is currently $265 and is paid by the franchisor).
CrunchTime Labor Scheduling Tool (includes online learning management system)	Currently $250 per year as a pass through payment to the franchisor.
Securities Offering Fee	If franchisees make a public or private a securities offering, $10,000 or the franchisor’s actual expenses, whichever is greater (subject to applicable law).

The above information has been compiled from the FDD of Perkins Restaurant & Bakery. Year of FDD: 2025.
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