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1. How much is the Franchise fee?
The Franchise fee is $49,000 per restaurant location. The Franchise fee is for the initial license to use the Johnny Rockets name and trademark, training, site assistance, and other pre-opening services to assist in starting your Johnny Rockets Franchise.
2. Can I acquire the right to develop an entire area?
We are seeking groups or individuals with the capacity to develop multiple sites within specific territories. Our Area Development Agreement allows for the development of a minimum of three restaurants. We multiply the number of units to be developed by $49,000 to represent the total for the Area Development Agreement. Half of this total amount is due upon the signing of the Area Development Agreement as a non-refundable fee. The remaining $24,500 per unit will be due upon the opening date of each location as dictated by the development schedule noted in the Area Development Agreement. Additional restrictions will apply pending approval from our Real Estate Committee.
3. What about other costs?
Investments vary based on unit size and local conditions. Please note that freestanding site options incur higher build-out costs associated with construction. The estimated investment that is required to open a Johnny Rockets restaurant is as follows:
INVESTMENT RANGE
|
LOW
|
HIGH
|
| Franchise Fee |
$49,000 |
$49,000 |
Building Package Range
non-Freestanding
Leasehold improvements,
furniture, fixtures, equipment,
signs, smallwares, inventory,
opening expenses, etc.
|
$587,500 |
$826,000 |
| TOTAL |
$636,500 |
$875,000 |
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4. What is the charge for royalties?
Individual Franchisees pay a royalty fee equal to 5% of annual gross sales up to $2,500,000 and 7% of annual gross sales in excess of $2,500,001 derived from their Johnny Rockets Franchise exclusive of sales tax, use tax or service taxes. This royalty fee is collected weekly. This charge covers the continued use of the Johnny Rockets name and trademark and access to our operation methods, ongoing support, and other benefits that come with being part of the Johnny Rockets team.
5. What about Marketing?
Building recognition of the Johnny Rockets name and reputation is an essential ongoing objective designed to benefit everyone involved in the Johnny Rockets system. Therefore, each Franchisee is required to contribute up to 3 percent of gross sales into the Johnny Rockets creative marketing fund. This creative marketing fee will also be collected weekly in addition to the royalty payment of 5%.
6. Do I receive training from Johnny Rockets?
Yes. Two managers must attend the full training program for five continuous weeks at a Johnny Rockets certified training restaurant. Training restaurants are located throughout the country to help control the quality of training and to keep down travel expenses incurred by the franchisee. This program is designed to provide you with an understanding of the administrative and technical aspects of running your Johnny Rockets Franchise. Costs of the training program are included in your Franchise fee; however, all travel and lodging costs will be at the Franchisee's expense.
7. Do I receive assistance in opening my business?
Yes. Johnny Rockets will assist in the grand opening of your restaurant, which is designed to build your customer base quickly. In addition to your full training program, Johnny Rockets will send trained representatives to work with you at your restaurant for a period of ten working days.
8. What form of continuing guidance will I receive?
As a Johnny Rockets Franchisee, you will receive periodic scheduled visits from a trained Johnny Rockets representative to provide experienced guidance and answer any questions you may have. You will also receive the Johnny Rockets confidential operations manuals, which cover policies and procedures involved in running your Johnny Rockets Franchise. Our "Service Check" guest feedback program and real time "SMG" guest satisfaction systems are included in your royalty payments, as well. An outline of these programs is available upon request.
9. What are the term limits of the Franchise agreement?
The initial term of the Johnny Rockets Franchise agreement is ten years. The Franchise agreement is renewable for two successive terms of five years each for those Franchisees that meet our renewal criteria.
10. What is the average size of a Johnny Rockets restaurant?
The typical Johnny Rockets restaurant ranges from 600 to 2,400 square feet and has a seating capacity of up to 110 seats. End caps in existing developments are always preferred. Due to our unique concept, Johnny Rockets is able to operate in many types of facilities including specialty retail and entertainment centers; specialty retail foodservice locations; mall (foodcourts); casinos; resorts; high-traffic, tourist markets; and airports. Freestanding floor plans are available, however, the cost of construction and equipment packages will be higher than our current average.
11. What are the minimum requirements for a multi-unit Franchise developer?
- You and/or a business partner(s) must have at least two years restaurant owner/operator experience.
- You and/or a business partner(s) must live in the market to be developed.
- You and/or a business partner(s) must have a net worth of $500 thousand per unit, and available liquid capital of $200 thousand per unit or more in order to qualify for development of up to five units.
- Development of six units or more will be considered on a case by case basis, pending your net worth and available liquid capital.
12. What is the next step?
If you meet our minimum requirements, please complete our online Franchise application to begin the Franchise application process. If you have any further questions regarding our Franchise program, please contact (949) 643-6134.
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