Is
Great Steak
a franchise?
![](https://cdn.prod.website-files.com/64c645bf4e8053b433624374/65332c27e377c0f739f0c303_2381035.png)
Great Steak, recognized as America's premier cheesesteak franchise, has been serving up classic American cheesesteaks since its inception in 1982. The franchise has capitalized on the growing popularity of authentic, comfort food, particularly the cheesesteak, which has seen a surge in national interest.
Great Steak's model stands out for its simplicity, focusing on cheesesteaks that appeal to a broad audience, including millennials, who appreciate the brand's commitment to quality ingredients and customizable meals. Great Steak started franchising in 1982, the same year it was founded. The franchise is headquartered in Scottsdale, Arizona, under its parent company, Kahala Brands.
The franchise is appealing to entrepreneurs looking for entry into the competitive sandwich industry due to its streamlined operations and manageable startup costs. Franchisees benefit from the brand's longstanding reputation, comprehensive training, and support from Kahala Brands™, ensuring a smooth entry into the food business even for those without prior experience in the restaurant industry.
Great Steak's focus on a timeless menu item—the cheesesteak—ensures its appeal across various markets. The brand's dedication to authenticity and quality, combined with a simple yet effective business model, makes it an attractive option for those looking to venture into the restaurant franchise sector.
How many
Great Steak
franchises
are there?
![](https://cdn.prod.website-files.com/64c645bf4e8053b433624374/66107d991f23814c6e9ffc53_map-location.png)
What are the
Great Steak
franchise
fees?
![](https://cdn.prod.website-files.com/64c645bf4e8053b433624374/65ac09f602af1193aee10d5b_payment.png)
Initial Franchise Fee
The initial franchise fee charged by the franchisor for a traditional location is $30,000. For the second and subsequent traditional restaurants, the initial franchise fee is reduced to $17,500. For the first non-traditional Great Steak restaurant location, the initial franchise fee is $7,500, and for the second and subsequent non-traditional locations, it is reduced to $5,000. Additionally, there is a 20% discount on the Initial Franchise Fee for eligible military members or 501(c)(3) organizations.
Royalty Fee
A weekly royalty fee equal to the greater of 6% of total Gross Sales or $400 is required throughout the term of the agreement.
Management Fee
If the franchisor assumes management of the Franchised Business, an additional 6% of Gross Sales plus direct out-of-pocket costs and expenses are due for the management period.
Advertising Fees
An advertising fee, up to 4% of weekly Gross Sales, contributes to the Advertising Fund, withdrawn electronically each Thursday.
Additional Training Fee
The fee for additional training is $1,250 per person, due two weeks prior to the beginning of the training.
Annual Meeting Registration Fee
The Annual Meeting Registration Fee is up to $1,000 plus incidental costs, due 60-90 days prior to the meeting.
Document Administration Fee
A Document Administration Fee of $500 is charged for the preparation of amendments to franchise documents.
Renewal Franchise Fee
Upon renewal, a fee of 50% of the then-current initial franchise fee, not including any discounts or reductions, is payable.
Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.
How much does
it cost
to start a
Great Steak
franchise?
![](https://cdn.prod.website-files.com/64c645bf4e8053b433624374/65ac104b68ecdb628610f250_money.png)
Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.
Does
Great Steak
provide
training
to its
franchisees?
![](https://cdn.prod.website-files.com/64c645bf4e8053b433624374/65ac14bd623b9882c1587d87_online-learning.png)
Great Steak provides a comprehensive training program for franchisees, ensuring they are well-equipped to manage and operate their franchise efficiently. This program is designed to cover all fundamental aspects of running a Great Steak restaurant, from food preparation to customer service.
Training Program Components
The training program is divided into two main components: In-Store Training and New Owner Training. Each segment is approximately 40 hours, totaling around 80 hours of training. The In-Store Training focuses on the practical, day-to-day operations within a Great Steak restaurant, whereas the New Owner Training covers broader aspects of business management and franchise operations.
In-Store Training
In-Store Training is conducted at a designated training store and provides hands-on experience in restaurant operations. Trainees learn about food preparation, customer service, cleanliness standards, and other essential daily tasks. This part of the training ensures that franchisees understand the operational standards and procedures required to maintain Great Steak's quality and service levels.
New Owner Training
New Owner Training may be conducted online or in person, at the franchisor's discretion. If held in person, it takes place at the Great Steak training and education center in Scottsdale, Arizona, or another location specified by the franchisor. This training segment covers managerial aspects, including leadership, financial management, marketing strategies, and employee training techniques.
Additional Training and Support
Franchisees have the right to request additional training if needed, which is provided at a cost. Great Steak also offers ongoing support and periodic evaluations to ensure franchisees continue to meet the system's standards. Attendance at additional training programs, conferences, and refresher courses is mandatory, with these events held in Phoenix, Arizona, or other locations determined by the franchisor.
Does
Great Steak
provides
territory
protection?
Great Steak does not grant franchisees an exclusive or protected territory for their restaurants. The Franchise Agreement and related documents clarify that franchisees should not expect any territorial rights that would prevent the franchisor from establishing franchised or corporate-owned locations of food concepts similar to Great Steak in the vicinity of their restaurant.
Additionally, there might already be existing locations of food concepts similar to Great Steak, owned by affiliates of the franchisor, operating near the franchisee's restaurant. This setup indicates that franchisees may face direct competition from other franchisees or the franchisor itself within or close to their operational area, without territorial protection against such competition.
Can a
Great Steak
franchise
be run as
a passive
investment?
The franchisor does not seek to license individuals looking merely for a passive investment in operating a Great Steak restaurant. It is strongly recommended that franchisees devote a substantial amount of time to their Great Steak restaurant, regardless of whether a manager is hired.
The franchisor emphasizes that franchisees who do not devote their full time and efforts to their restaurants may experience lower gross sales, higher operating costs, and lesser name recognition in their areas compared to those franchisees who do fully devote themselves to the business.