Is
Newk's Eatery
a franchise?
How many
Newk's Eatery
franchises
are there?
What are the
Newk's Eatery
franchise
fees?
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
franchise?
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.
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
Newk's Eatery
provide
training
to its
franchisees?
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.
Does
Newk's Eatery
provides
territory
protection?
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
franchise
be run as
a passive
investment?
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.
