Year Business Began: 1991
Franchising Since: 2009
Headquarters: Cheshire, Connecticut
Estimated Number of Units: 180
Franchise Description: The franchisor is Jake’s Franchising LLC. Wayback Burgers restaurants specialize in hamburgers, old-fashioned, hand-dipped milkshakes in several select flavors, distinctive chicken sandwiches, hot dogs, cheese dogs, salads and merchandise, and an approved, limited menu of side orders and drinks.
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Territory Granted: The franchise is granted for a specific location approved by the franchisor. Franchisees will not receive an exclusive territory under the Franchise Agreement. Franchisees may face competition from other franchisees, from outlets the franchisor owns, or from other channels of distribution or competitive brands that it controls.
Obligations and Restrictions: Franchisees or their designated manager who has completed the initial training program must devote full time and best efforts to the management and operation of the franchised business. Franchisees or their designated manager must be on the premises operating the restaurant during peak hours of restaurant operation as the franchisor specifies in writing. Each equity or voting owner who owns 5% or more of the franchised business must personally guarantee the Franchise Agreement including confidentiality and non-competition covenants. To maintain uniform quality standards, franchisees must follow the franchisor’s directions concerning the services and products they provide. Franchisees may sell only those approved services and products consistent with the image and product line as have been expressly approved by the franchisor.
Term of Agreement and Renewal: The length of the initial franchise term is 20 years. Franchisees have the right to renew the Franchise Agreement for two consecutive terms of five years each, if requirements are met.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation.
Estimated Initial Investment
Name of Fee | Low | High |
Initial Franchise Fee | $35,000 | $35,000 |
Leasehold Improvements | $75,000 | $350,000 |
Initial Rent Outlays | $2,500 | $20,000 |
Equipment | $85,000 | $255,000 |
Outside Fixtures and Furnishings | $5,000 | $10,000 |
Signage | $7,000 | $35,000 |
Initial Inventory | $9,000 | $13,000 |
Supplies | $5,000 | $35,000 |
Travel and Living Expenses During Training | $1,000 | $10,000 |
Utility Deposits | $0 | $5,000 |
Prepaid Insurance Premiums | $500 | $5,000 |
Permits and Licenses (including design fees) | $6,000 | $12,000 |
Grand Opening Advertising | $5,000 | $5,000 |
Additional Funds and Miscellaneous | $20,000 | $60,000 |
ESTIMATED TOTAL | $256,000 | $850,000 |
Other Fees
Type of Fee | Amount |
Royalty | The greater of 5% of weekly gross sales or $400 per week. |
Continuing Local Marketing and Advertising | 2% of monthly gross sales. |
Advertising Fund | 2% of weekly gross sales. |
Regional Advertising Cooperatives | Up to 2% of weekly gross sales. |
Advisory Council Fee | If the franchisor establishes a franchise advisory council, franchisees must participate actively in the council and in all council programs and pay a fee, as determined by the advisory council. |
Interest | 18% per annum, or maximum rate permitted by law, whichever is less. |
Insurance | Cost of insurance and, if not obtained by franchisees, the franchisor’s procurement expense. |
Audit Fees | Cost of audit. |
Training | Then-current training fee and amount of expenses, currently $200 per person per day. |
Site Selection | Amount of the franchisor’s expenses for on-site evaluations. |
Transfer Fees | 50% of the then-current initial franchise fee per restaurant; or the franchisor’s actual expenses if transfer is to entity the franchisee forms. |
Renewal Fee | 10% of the then-current initial franchise fee. |
Indemnification | Cost of liability. |
Fees on Default and Indemnity | Cost of collection and attorneys’ fees. |
Cost of Approval of Supplier and for Testing Samples of Items | Actual cost of evaluation. |
Computer, Website, Point-of-Sale and Other Equipment Maintenance, Upgrades, Updates | Approximately $2,400 to $4,500 per year. |
Refurbishment | Approximately $500 to $5,000 per year. |
Walmart Sublease Fees | Percentage rent 2% - 12% of gross revenues per month; insurance fee $0 - $300 per month, common area maintenance fee: $975 - $2,000 per month. |
Overdraft Fee | $50 |
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