Modern Market Eatery Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$729,000

-

$1,469,000

LOCATIONS

25

Emily

Updated

April 11, 2024

Is

Modern Market Eatery

a franchise?

Yes,
Modern Market Eatery
currently
accepts
franchise
applications

Modern Market Eatery, a fast-casual restaurant chain known for its commitment to offering clean, nutritious, and delicious food, was founded in Boulder, Colorado, in 2009. The franchise is headquartered in Denver, Colorado.

The brand emphasizes scratch-cooking in every restaurant, using sustainable and ethically raised ingredients, and avoids preservatives, antibiotics, and anything artificial. Modern Market began franchising in 2020, aiming to expand its mission of making healthy, chef-driven food as accessible and widespread as burgers and fries.

How many

Modern Market Eatery

franchises

are there?

In 2022, there were
25
outlets in
the United
States, of which
3
are franchises, and
22
are corporate-owned.

What are the

Modern Market Eatery

franchise

fees?

Advertising fee

2.00%

Initial Franchise Fee

The Initial Franchise Fee ranges from $40,000 to $40,500, which is required for the establishment of a franchise.

Area Development Fee

For the first Modern Market Eatery Restaurant, an Area Development Fee of $40,000 is required, along with a $10,000 deposit for each additional restaurant planned under the same development agreement.

Royalty Fee

A Royalty Fee of 5% of Gross Sales is mandated, contributing to ongoing franchise support and brand development.

Brand Fund Contribution

The current Brand Fund Contribution stands at 1% of Gross Sales, with the franchisor reserving the right to increase it to up to 3% with 30 days’ written notice.

Local Advertising Requirement

Franchisees are currently required to allocate 1% of Gross Sales towards local advertising efforts to promote their individual franchise.

Annual Conference Fee

While not currently charged, an Annual Conference Fee of up to $1,000 for up to two attendees may be introduced, subject to change in the future.

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

Modern Market Eatery

franchise?

It costs between
$729,000
and
$1,469,000
to start a
Modern Market Eatery
franchise.
Type of Expenditure Amount
Franchise Fee $40,000
Lease Deposit $5,000 - $30,000
Licenses and Permits $3,000 - $5,000
Architects and Design $18,000 - $40,000
Construction/Leasehold Improvements $320,000 - $700,000
Graphics and Signage $20,000 - $40,000
Kitchen Equipment $120,000 - $220,000
Furniture, Fixtures $75,000 - $150,000
Computer and Security Equipment $25,000 - $35,000
Uniforms $2,000 - $4,000
Professional Fees $2,000 - $5,000
Opening Inventory $10,000 - $20,000
Smallwares $20,000 - $25,000
Pre-Opening Labor $10,000 - $20,000
Insurance Deposits $3,500 - $5,500
Manager In Training $10,000 - $40,000
Grand Opening Marketing $15,000 - $40,000
Site Selection Assistance Fee $0 - $500
Miscellaneous Opening Costs $0 - $8,750
Additional Funds - 3 months working capital $30,000 - $40,000
Total for Single Unit $728,500 - $1,468,750

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

Modern Market Eatery

provide

training

to its

franchisees?

Yes,
Modern Market Eatery
provides
training

The franchisor provides a comprehensive training program that includes a variety of training methods to ensure the franchisee and their staff are well-prepared for operating a Modern Market Eatery restaurant. 

Initial Training Program 

The training program consists of both classroom and on-the-job training segments, conducted at a location designated by the franchisor. The total training duration includes 63 hours of classroom training and 297 hours of on-the-job training at a certified training restaurant.

The initial training program is scheduled as needed for new franchisees, and participants are required to complete the program at least 30 days before opening their restaurant. The program is offered only in English, and the instructional materials may include handouts, manuals, guides, quizzes, and checklists, as well as self-guided web-based training and online learning materials.

Trained Managers Train Personnel Programs

In addition to the initial training, the franchisor may require the franchisee's trained managers to offer training programs to their personnel before they assume their roles at the restaurant. The franchisor evaluates all individuals trained by the franchisee's trained managers and determines whether to certify that the trainee has completed the training to the franchisor's satisfaction.

Advice and Consultation on Restaurant Operations

Furthermore, the franchisor may periodically provide advice and consultation regarding the operation of the restaurant, which may include distributing printed, filmed, or electronic information, holding meetings or seminars, and conducting telephone or email communications. The franchisor also inspects the restaurant and its operations periodically to assist with operations and ensure compliance with the System.

Training Costs

The franchisor may charge a fee for training additional persons, newly hired staff, refresher training, advanced training, and additional or special assistance or training that the franchisee requests. The current fee is $250 per person per day, plus travel and living expenses.

Does

Modern Market Eatery

provides

territory

protection?

The franchisor, Modern Market Eatery, does not offer exclusive territories under either the Franchise Agreement or the Development Agreement. Franchisees may face competition from other franchisees, outlets owned by the franchisor, or other channels of distribution or competitive brands controlled by the franchisor. The franchisor has no obligation to compensate franchisees for any such competition.

Each Franchise Agreement grants the franchisee certain territorial rights in a geographic radius specified in an exhibit to the Franchise Agreement. The protected geographic territory, generally a radius of two miles from the franchised restaurant, may be adjusted to a smaller or larger radius as agreed upon before signing the Franchise Agreement.

Despite these territorial rights, the franchisor reserves the right to operate or license others to operate different types of restaurants within the franchisee's protected area, and to sell the same or similar products authorized for sale at Modern Market Eatery restaurants under the Proprietary Marks or other trademarks through any channel of distribution.

Can a

Modern Market Eatery

franchise

be run as

a passive

investment?

The franchise structure allows for a form of passive investment to some extent. A franchisee has the option to delegate the day-to-day operational responsibilities to an "Operating Principal" whom they designate. Specifically, franchisees must designate an "Operating Principal" who is responsible for the daily operations of the restaurant. This Operating Principal must be substantially involved in the day-to-day management and operations of the restaurant. 

The franchise also allows for the designation of a General Manager or Assistant General Manager to handle daily operations in the absence of the Operating Principal. These positions do not require an equity interest in the franchise but are crucial for the restaurant's everyday functioning. The Operating Principal, along with any designated managers, owners, or employees identified by the franchisor, must successfully complete the franchisor's management training program. 

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