Newk's Eatery Franchise Costs, Fees & Owner Salary (2023)









May 2, 2024


Newk's Eatery

a franchise?

Newk's Eatery

Newk's Eatery, founded in Oxford, Mississippi in 2004 by Don and Chris Newcomb alongside Debra Bryson, emerged from a rich heritage of culinary endeavors, following their successful development of the McAlister's Deli concept.

Newk's Eatery distinguishes itself in the fast-casual dining sector by offering a diverse menu that includes made-from-scratch sandwiches, soups, salads, pizzas, and desserts, emphasizing the use of fresh ingredients. Nothing on their menu is pre-sliced, pre-chopped, or pre-packaged, ensuring each item is prepared fresh daily, full of flavor and nutritional value.

Headquartered in Jackson, Mississippi, Newk's Eatery has expanded significantly since its inception and began franchising in 2005. The eatery operates under private ownership by Sentinel Capital Partners, continuing to build on its foundation of quality, freshness, and culinary innovation. The name "Newk's" is a nod to the Newcomb family cookbook, reflecting the brand's commitment to home-style, quality meals reminiscent of family favorites.

Newk's Eatery stands out in the competitive landscape of fast-casual dining by its commitment to fresh, quality ingredients, and a made-from-scratch philosophy that extends across its entire menu. This approach has not only garnered a loyal customer base but also positioned Newk's as a distinctive player in the industry, known for its quality kitchen and feel-good comforts that cater to a variety of dietary preferences and tastes.

How many

Newk's Eatery


are there?

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

What are the

Newk's Eatery



Advertising fee


Initial Franchise Fee ($40,000)

The initial franchise fee for a Newk's Eatery franchise is $40,000. This fee is for the franchise granted and is payable upon signing the Franchise Agreement. If the agreement was executed pursuant to an Area Development Agreement, the Franchise Fee shall be paid in full upon the execution of this Agreement. If not, the fee is $40,000.

Royalty Fee (5% of Net Sales)

Franchisees are required to pay a continuing royalty fee equal to five percent (5%) of the Net Sales of the Franchised Restaurant. Net Sales means all revenue related to the Franchised Restaurant, including all on-premise and off-premise sales but excluding customer refunds, complimentary meals, the discounts on employee meals, and sales taxes collected and remitted to the proper authorities.

Advertising Fee (2.75% of Net Sales)

Franchisees are obligated to contribute towards advertising and marketing efforts. This includes a contribution of 1.75% of Net Sales to the National Marketing Fund and an additional 1% of Net Sales for local advertising. The total advertising fee sums up to 2.75% of Net Sales.

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

Newk's Eatery


It costs between
to start a
Newk's Eatery

For those considering franchising a Newk's Eatery restaurant, the total estimated initial investment necessary to commence operation ranges from approximately $1,014,350 to $1,337,350.

This investment encompasses various costs, from an initial franchise fee to rent and equipment expenses. The detailed breakdown table below provides a clearer perspective on the investment required.

Type of Expenditure Amount
Initial Franchise Fee $40,000
Business Licenses & Permits $1,500 to $3,000
Leasehold Improvements $422,500 to $587,000
Fixtures, Furnishings & Equipment $415,000 to $527,000
Architect Fees $34,850 to $48,850
Rent and Utility Deposits $8,000 to $16,000
Other Professional Fees $5,000 to $5,500
Insurance Deposit $5,000 to $10,000
Initial Inventory of Food and Paper Supplies $12,500 to $18,000
Training Expenses $22,500 to $30,000
Grand Opening Advertising $15,000
Additional Funds (for initial period of operations) $32,500 to $40,000
Total $1,014,350 to $1,337,350

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.


Newk's Eatery



to its


Newk's Eatery

Here's a detailed look at what they offer to their franchisees:

Training Program: Newk's Eatery offers a comprehensive training program that combines various learning methods, ensuring that franchisees are well-prepared with the necessary knowledge and skills to operate their store.

Who Needs to Attend:This includes the franchisee's Operating Principal, the General Manager, and a minimum of two and a maximum of four members of the franchisee’s management personnel, depending on the size of the Restaurant.

Training Content: The training program covers sales techniques, product orientation, accounting procedures, food preparation, and operations management.

Location and Duration: The training is provided at Newk's Eatery's designated locations and must begin  at least 15 days before the scheduled opening date for the Franchised Restaurant. It comprises of 276 hours of on-the-job training and 74 hours of classroom training.

Ongoing Training: Newk's Eatery may require the Principal Trainees to attend refresher courses, seminars, and other training programs.

Training Expenses: Newk's Eatery will bear the cost of the instruction of the management training program. However, the franchisee will bear all other expenses incurred in attending the training.


Newk's Eatery




Franchisees do not receive an exclusive territory. They are granted a geographical area known as the "Protected Area". Within this Protected Area, Newk's Eatery commits not to establish or grant a new franchise for the operation of a Newk's Eatery Restaurant.

However, franchisees may face competition from other franchisees, from outlets that Newk's Eatery owns, or from other channels of distribution or competitive brands controlled by Newk's Eatery.

The size and scope of the Protected Area will be determined by various factors, including current and projected market demand, demographics, and traffic patterns.

Can a

Newk's Eatery


be run as

a passive


For Newk's Eatery franchisees, if the franchisee or their Designated Principal does not take on the full-time responsibility for the daily supervision and operation of the franchised restaurant, they must employ a full-time general manager.

This general manager must meet qualifications that are acceptable to the franchisor and must successfully complete the initial training program provided by the franchisor.

The franchisor has the right to rely on either the Designated Principal or the General Manager to have the responsibility and decision-making authority regarding the operation of the franchised restaurant.

In conclusion, Newk's Eatery expects either the franchisee or a qualified general manager to be actively involved in the day-to-day operations of the franchised restaurant.

Related Posts