2009-01!13!337_ Fuddrukers Franchise Brochure

8/3/2019 2009-01!13!337_ Fuddrukers Franchise Brochure

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Thank You For Your Interest!Thank you for your interest in Fuddruckers. We take pride in serving the Worlds GreatestHamburgers and creating the Worlds Greatest Franchise.

Across the USA you will nd Fuddruckers voted Best Burger time and time again. Accord-ing to the CitySearch poll, when it comes to Americas Best Burgers there is no nationalburger-serving entity that is even a close second to Fuddruckers.

We have developed a new building prototype and design package that has dramaticallyreduced the investment required to open a new Fuddruckers. We have also introduced theFudds Express and other concepts, which allow our restaurants to open in new and uniquevenues.

We continue to develop new corporate restaurants and have now opened up many new ter-ritories for single and multi-unit franchises. A comprehensive support system is in place to

help you open and operate a successful Fuddruckers franchise.

If you are interested in being part of the team serving the Worlds Greatest Hamburgersand being part of the Worlds Greatest Franchise, we welcome an introduction. Pleasecontact us today.

FuddruckersBuild Your Own

(866) 691-0404www.fuddruckers.com


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How It All Began

One can really never underestimate the

power of a great hamburger.

Michael Cannon

The rst Fuddruckers opened in San Antonio,Texas, in 1980. The concept was born whenfounder, Phil Romano, was unable to nd a res-taurant that served a great, fresh hamburger in asophisticated, yet comfortable setting. That rstrestaurant is still in existence on Botts Lane in SanAntonio. While the look may have changed, theFuddruckers of today is not much different than that1980 restaurant concept.

Fuddruckers operates and franchises restaurants thatspecialize in high quality, upscale hamburgers in avariety of sizes that are cooked to order. The emphasistoday is the same as it was in 1980 we use only thefreshest ingredients and we give our guests the powerof choice. We encourage guests to garnish their ownentrees by providing an array of farm-fresh produceand condiments. Our restaurants serve only the fresh-est beef, offer free drink rells, and feature on-premisebakeries where bread and dessert items are baked freshdaily. Its truly a build-your-own meal experience.

Over the years, Fuddruckers has evolved from just a beer and burgers joint into a fun, fast-casual dining destination that focuses on great food and friendly, attentive guest service.The mainstay of our menu is still the hamburger, which we now offer in 1/3, 1/2, 2/3, andone-pound options. Beyond our signature entre, we also offer a variety of chicken sand-wiches, salads, steak sandwiches, hot dogs, kids meals, shakes and bakery items. To furtherbroaden our variety and appeal we also offer healthier burger options like our Veggie Burger,Turkey Burger and Buffalo Burger.

The Fuddruckers story continues today as we develop new menu items to please even themost discerning of guests, update our look and image, and build new corporate and franchiserestaurants across the country and around the globe.


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The Fresh Face of Fuddruckers

With the brands strength lasting more than 25 years, we are looking to the future and arecreating a fresh face for Fuddruckers. The evolution is well underway with Michael Can-

non, Magic Brands, LLC owner and restaurant re-tooling genius, leading the charge. Sincepurchasing the chain in 1998, Cannon has broadened Fuddruckers appeal by expanding themenu and dening the companys philosophy of If it aint great, we dont do it!

Although changes are denite, Fuddruckers original concept is the mainstay. In 1980, Fud-druckers founder, Phil Romano, converted an old bank building on Botts Lane in San Antonio,Texas, into the rst Fudds. This is where the perfect burger was served and the gourmethamburger empire began. Today, the restaurants continue to focus on Romanos concept:

upscale burgers that are cooked to order with guests encouraged to create their own burgermasterpiece at the fresh produce and condiment bar. Only the highest quality, fresh, never-frozen beef and baked-daily buns and bakery items are served to guests.

Fuddruckers continues to be the leading quick-casual restaurant in the industry by offeringthe highest quality, best tasting food and fast, friendly service in a casual yet energetic at-mosphere. Providing not only the Worlds Greatest Hamburger, but the Worlds GreatestHamburger Experience may seem an ambitious goal, but it is one that Fuddruckers relent-

lessly pursues.


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WHATS AHEAD

Our strategy is not just about scale, but more about quality

and we will not compromise on the professionalism and sustain-

ability of our owners.Peter Large, President/CEO

Fuddruckers continues to generate ways to keep our guests en-gaged and coming back. We have developed a new and improved facility prototypethat signicantly reduces the franchisee investment while improving unit economics. Thenew look emphasizes and focuses on the connection between our Worlds Greatest Burgerconcept and its place in the American culture. While these changes take place, the key to

Fuddruckers culture and ultimate success will still remain front and center high qualitybeef, fresh produce, in-store bakeries, and the ability to build your own burger.

In addition to the new prototype, there is a tremendous amount of teamwork and coordina-tion going into our new products, menu initiatives, and marketing of the Fuddruckers brand.While we have streamlined the menu to focus on the burger and other top selling Fuddsfavorites, we continue to keep our guests excited and coming back to see what new productFuddruckers will come up with next. With our dedicated in-house chef, we are not just keep-

ing up with the competition, but are proving to be an industry leader in culinary creations.

TV advertising and local restaurant marketing are two of the avenues that we are currentlycapitalizing on. New television ads are being created with customizable features and mediabuyers with experience in reaching the right target audience (in this case, the Fuddruck-ers guest) at the right price are accessible to each franchise owner. All restaurant ownersand managers are empowered to reach out to their community by utilizing the online LocalRestaurant Marketing Toolkit. The online toolkit is lled with ideas, instructions, and market-

ing materials that are downloadable, customizable, and printable all onsite. We continue toexplore new avenues of reaching future Fudds fans and increasing the number of times our

current guests frequent our restaurants.

The future of Fuddruckers is bright, particularly because we areemploying strategic growth planning, smart operational practic-es, and innovative marketing initiatives. But more importantly,we have never lost sight of what makes us special and what has

made us successful.the Worlds Greatest Burger and ulti-mately the Worlds Greatest Burger experience.


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SUCCESS STORIES

George & Rebecca Almeida

Rebecca and George Almeida are long time Fudds fans andseasoned franchisees. Their story begins in the mid 80s asguests of the Concord, California location. They fell in lovewith the incredible food and family-friendly atmosphere somuch that they dined at their local Fuddruckers at least 3times a week. This love grew into a job for Rebecca workingwith the restaurant owner. Just three years later, in 1990, theAlmeidas were approached by the owner who offered themthe restaurant. Understanding the strength in Fuddruckersgreat Build Your Own concept, the long-lasting brandrecognition and the loyal following, George and Rebeccaexcitedly took the plunge into franchise ownership. Today,the Almeidas successfully own and operate 8 Fuddruckersfranchises in California, Oregon, and Idaho.

The key to success, according to George and Rebecca, is service. They treat their Fudd-ruckers guests as they would guests in their home. This level of service is translated throughtheir friendly and attentive Managers and Associates. The Almeidas also believe that com-munity involvement through hosting fundraisers, sponsoring golf tournaments, and providingcatering and foodservice for area hospitals and charitable organizations brings them closerto their guests.

Fuddruckers has been a real blessing for us.

Allen & Lee Ann Johnston

High school sweethearts Lee Ann and Allen Johnston were recruited into the restaurantindustry many years ago by Jerry Richardson. Richardson, former owner of the largest Hard-

ees franchise and Quincys Family Steakhouses and current owner of the Carolina PanthersNFL franchise, asked Lee Ann to become a member of his restaurant team while she was stillin high school. Lee Ann became the rst biscuit cook for Hardees and eventually became


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Richardsons personal administrative assistant. Upon nishingcollege, Allen was recruited over to the Quincys organiza-tion where he became a District Manager.

Recognizing their talent and passion, the Johnstons boss

and mentor suggested that they research the gourmet ham-burger craze that was hitting the food industry. Taking Rich-ardsons advice, Lee Ann and Allen discovered the restaurantthat proclaimed to serve the Worlds Greatest Hamburgers.Fuddruckers stood out to us because of its simplicity, qualityand broad popularity, Allen explains.

In 1985, The Johnstons formed The

Butcher The Baker Company and openedtheir rst Fuddruckers franchise inSpartanburg, South Carolina. Since thattime, they have opened Fuddruckers res-taurants in South Carolina, North Carolinaand Tennessee. Today, their passion anddedication for the brand and for theirFuddruckers guests is stronger than ever.

Fuddruckers stood out because

of its simplicity, quality and broad popularity.

Jim Boland

Jim Boland began his career in the restaurant industry in 1980 as a Pizza Hut assistant man-

ager. In 1993, Jim began working for Fuddruckers parent company in the contract foodservice division. Upon realizing what the Fuddruckers brand represented uncompromisedquality, burgers built your way, and an unforgettable dining experience - Jim requested towork directly for Fuddruckers. He promptly became the Senior Vice President of Operationsand oversaw one half of the companys restaurant operations.

In June of 1998, Jim purchased two existing Fuddruckers restaurants and ofcially becamea Fuddruckers franchise owner. Jim saw this as an opportunity to grow professionally while

having lots of fun. It has proven to be a great relationship ever since. Jim states, Owningand operating Fuddruckers restaurants has been very challenging, yet very rewarding. I feelI have the opportunity to create my own destiny in regards to sales, marketing, stafng,


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personnel development and the overall success of the business.Fuddruckers allows a franchisee to really exert their entrepreneur-ial skills and creativity.

In addition to his original 1998 restaurant purchases, Jim has suc-

cessfully opened 2 more restaurants and plans to open six moreFuddruckers restaurants in the upcoming years.

Fuddruckers allows a franchisee to really exert their entrepre-

neurial skills and creativity.

SUPPORT SERVICESMany factors contribute to the success of your restaurant. Weprovide Fuddruckers franchisees with the help needed to getoff to a great start and ensure ultimate success through com-prehensive support systems that we are constantly expanding

and rening. The following are services we offer our franchisees:

Design/Construction

Our Design/Construction Department is focused on maximizing your opportunity for successby providing:

Site Design Services and SupportDirect Sources of Competitively Priced Contractors/EquipmentDesign Consultation and Review

General Development Support

Training

At Fuddruckers, we understand the importance of a comprehensive training program to pre-pare your managers and team members to run a smooth and successful restaurant.Our Training Department has developed an extensive program that includes:

Owner/General Manager Classroom-Style Operations TrainingManagement/Team Front- and Back-of-the-House In-Store TrainingRestaurant Opening Training and Support


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Program and Product Training and SupportManuals Covering Recipes, Food Handling, Preparation & Portioning, and Service

*All new franchise partners are required to send a minimum of three managers through theFuddruckers-approved training program.

Marketing

The Fuddruckers Marketing Department is dedicated to maintaining brand consistency, build-ing brand strength, and creating top-of-mind awareness in your community. Franchiseesreceive marketing support through the following:

Menus and Signage

Intranet and Internet WebsitesProduct PromotionsGuest Loyalty ProgramsLocal Store Marketing MaterialsTV, Radio, and Print ProductionLogo/Brand Usage Guidelines

Operations

Ongoing operational support allows you to stayfocused on enhancing your operations and exceeding customer expectations.Each franchisee is assigned a Franchise Business Consultant (FBC)that has extensive restaurant operations experi-ence and insight. The FBCs support you and yourmanagement team by providing the following:

New Restaurant Opening AssistanceIn-Store Visits to Analyze Operationsand Brand ConsistencyCommunication Between You and theCorporate Support CenterPurchasing and Product RecommendationsSuggested Pricing GuidelinesBest Practices/Guest Service Information


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1. Initial Contact

You may contact us by phone, email, or online. Upon receivingyour request for information, a Franchise Development Coordi-nator will call and introduce you to Fuddruckers and our fran-chise development process and get you on your way to Build-ing Your Own Fuddruckers franchise restaurant.

2. Submit Franchise Application

Fuddruckers seeks franchise owners that are committed to

hands-on operation of their business or that have the knowl-edge and ability to develop a full-time management teamdedicated to successfully operating their franchise. Withcapitalization being a key component to any business ven-ture, we require that you submit information regarding adequate nancial resources to fa-cilitate the development of your Fuddruckers franchise. This information is gathered throughthe completion of the preliminary Franchise Application. This application does not create abinding contract.

Once your completed Franchise Application is received, we will determine ifyour geographic area of interest is available. If your area ofinterest is not available, we will recommend alternative areasof availability. At this point, all qualied applicants receivea copy of the Fuddruckers Franchise Disclosure Documentmarking the beginning of the due diligence process.

3. Due Diligence

The due diligence phase serves to conrm the informationyou provided on your Franchise Application. This is also atime for you to gain more insight into owning and operatinga Fuddruckers restaurant. We encourage you to closelyreview the Franchise Disclosure Document, visit with exist-

ing franchisees, and call on your Franchise DevelopmentCoordinator to answer any questions you may have.


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4. Discovery Day (Austin, TX)

The Fuddruckers Discovery Day serves as an opportunity tomeet with you face-to-face to discuss your interest and objec-tives, and establish expectations and goals. We will invite you

to our corporate support center in Austin, Texas to meet withmembers of our leadership team and the various divisions thatprovide support to our franchise community. We will discussour support services with you and answer any questions thatyou may have about the Fuddruckers franchise program. Itemsthat we will review during Discovery Days include:

Fuddruckers History

Our CultureFinancingSite Approval ProcessDesign & ConstructionTrainingOperations SupportPurchasing & CulinaryMarketing

5. Franchise Agreement / DevelopmentAgreement

Upon completion of Discovery Day, your Franchise DevelopmentCoordinator will contact you regarding nal approval of your

new Fuddruckers franchise restaurant. We will then enter into aFranchise Agreement (single location) or a Development Agree-ment (multiple locations). At this time and with much enthusiasmand pride, we will begin to Build Your Own Fuddruckers franchiserestaurant.

Congrat ulat ions!The door to becoming a successful

Fuddruckers franchisee has just opened.


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START-UP & DEVELOPMENT INFORMATION

Fuddruckers offers single and multi-unit development franchise opportunities.

Total Initial Investment per LocationYour total initial investment is dependent upon location and unit square footage. The currentprototype square footage is 5,500 - 6,200, yet unit square footage can range from 600 sq.ft. to 6,500 sq. ft. The areas included in your total initial investment, as well as the low andhigh ranges in cost are listed in the table below.

Investment Area Low* High*

Initial Franchise Fee $35,000 $50,000

Construction & Leasehold Improvements $500,000 $930,000

Furnishings, Fixtures & Equipment $290,000 $360,000

Opening Inventory $15,000 $15,000

Exterior Signage & Interior Signage $35,000 $50,000Liability & Property Insurance $15,000 $25,000

Employee Training Expenses $20,000 $25,000

Opening Advertising & Promotions $5,000 $10,000

Miscellaneous Costs $20,000 $20,000

Additional 3-Month Operational Funds $50,000 $50,000

*Range does not include real estate and liquor license costs.

Financing

Fuddruckers does not offer nancing to franchisees; however, we can provide you with con-tacts at nancing companies that are familiar with our business.


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Financial requirements include:

Liquid Resources $350,000 - $400,000Liquid Resources - Cash, Stocks, Bonds, Inventory, Etc.

Net Worth $800,000 - $1 millionNet Worth = Total Assets minus Total Liabilities

Royalty Fee

Fuddruckers royalty fee, which provides for the brand, operations, and support systems, is5% of monthly gross sales.

Marketing Fee

The current marketing fee, which provides programs encouraging brand recognition, is .25%of gross sales.

Site Recommendations

The location of your new restaurant is highly critical to its success. When considering a res-taurant area and location, you will be off to a great start by following the guidelines listedbelow

DemographicsMinimum population of 50,000 in a 3-mile radiusAverage household income of $55,000 and abovePredominance of families and children

Concentration of ofces and/or retail centersEmployee population 20,000 in a 3-mile radiusTrafc counts of 30,000+ cars a day on primary roadAbility to obtain a beer and wine license

Construction Criteria1 ton of AC per 150 square feet120/208 3-phase 4-wire, 60-cycle AC (approximately 600 amperes)1.5 water line6 capped waste line and grease trap2 capped gas line at 1800 CFH


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QUESTIONS & ANSWERS

1. What makes owning a Fuddruckers f ranchise

a great business opport unit y?

Fuddruckers has enjoyed success for nearly 30 years andhas proven franchising experience. We never compromise onthe quality of our food products and we offer a unique BuildYour Own experience for our guests. Our franchise businessowners are provided support in design and construction,marketing, and operations.

2. What qualications are required of potential

franchise owners?

Potential Fuddruckers franchisees must be committed to beinghands-on owner/operators and following through with all training requirements. Minimumnancial requirements include having liquid resources of $350K and a net worth of $800K.

3. What is a Franchise Agreement and what is the t erm?

The franchise agreement, which is awarded to qualied candidates,outlines the way your franchised restaurant will workwithin the Fuddruckers franchise system. Franchise Agreements have an initial term of 20years.

4. Will I need to nd my own location?

Each franchisee is responsible for securing a suitable location for their restaurant. However,we do provide site selection support, demographic information, broker coordination servic-es, site survey trips, lease review, and architectural and bid review.

5. How long will it take to open my Fuddruckers restaurant?

Franchisees typically open their Fuddruckers restaurants within 12 to 15 months after sign-ing the Franchise Agreement. Certain factors may affect the length of time required to open

your restaurant. These factors include locating and securing a satisfactory site, obtainingadequate nancing to complete necessary construction or remodeling, and obtaining neces-sary ordinance and/or building code permits, licensing, and approvals.


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6. What is the estimated initial investment and what are the ongoing fees?

The total investment ranges from $985K - $1.525MM (includes franchise fee) depending upona location and unit square footage. We assess a 5% royalty fee and a 0.25% marketing fundfee based on gross sales.

7. What are my potent ial earnings as a Fuddruckers fr anchise owner?

Your earning capability depends on several factors including past experience, location, busi-ness acumen and market conditions. As in any business there is no guarantee to your success.Existing Fuddruckers franchisees are an excellent source of information to answer questionsregarding operations, marketing and nances.

Other Questions/Notes:


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LetterFromOurOwne

r

DearPotentialFuddruckers

Franchisee,

Fuddruckerswasfoundedin1980withau

niquepromise:tocreate

and

delivertheWorldsGrea

testHamburger.Sincethen,Fuddruckershas

builtgreatsuccessonthat

promise,consistentlybein

gratedoneofthe

topfranchiseorganization

sinthecountry.Wehave

beenhighlyranked

amongthenationsleading

restaurantchainsandfra

nchisesbyQSR

MagazineandEntrepreneu

rMagazine.Whileoursucc

essisbuiltonour

high-quality,made-to-orde

rhamburger,itisourdedic

atedassociates

andfranchiseownersthat

continuetobuildupontha

tsuccessandbring

theWorldsGreatestHamburgerexperien

cetoourguests.Ourbran

d

strengthcontinuestostan

dthetestoftimebecauseofourpassionfor

beingthebestandourfutu

rewillbebuiltbyvisionar

iesthatshare

thissamepassion.Fuddruc

kersbeganwiththeWorl

dsGreatestHam-

burger.itcontinueswith

you!Thankyouforyourin

terestinhelping

uscontinuebuildingthisw

orld-classbrand.Iinvitey

outotakethenext

stepanddiscoverwhatma

kesFuddruckerstrulyuniq

ue.

Sincerely,

MichaelCannon


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Before purchasing Magic Brands, LLC (Fuddruckers, Inc.) in 1998, Michael Cannon spent 20 years

building an enviable record of successes in the UKs hospitality industry. Today, his name is syn-onymous with exceptional returns in the eld of chain management. Cannon began building hisreputation for retailing innovation and creativity in 1975 when he bought a half-share in a Bristolpub. In 1976, he established Inn Leisure Limited, a privately held company operating a chain of pubs.Cannon took the company public in 1983, merged it with JA Devenish three years later, doubled thecompanys sales as CEO and then sold Devenish in 1993 for $349.3 million. A year later, Cannon led amanagement team in the formation and daily operation of The Magic Pub Company, which acquiredmore than 250 under-performing pubs and hotels. By January of 1996, The Magic Pub Company hadbecome one the leading hospitality managers in the UK. Cannon sold The Magic Pub at a price of

$321.9 million. Cannons success comes from years of working in every aspect of his businesses. Hefeels that proper stafng, at all levels, is critical and listening and taking into account the thoughtsand feelings of each associate is essential to the overall atmosphere and success of a business.

ABOUT OUR OWNER


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2009-01!13!337_ Fuddrukers Franchise Brochure

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Transcript of 2009-01!13!337_ Fuddrukers Franchise Brochure