Risk Score
Pending analysis
Investment Range
$466,700 - $1,468,500
Franchise Fee
$38,000
Min Cash Required
$25,000
Total US Locations
8
Business Summary
Beef-a-Roo operates a fast casual/quick service restaurant business that serves Midwest fare like juicy burgers, fresh roast beef sandwiches, milkshakes, fries, and salads. Beef-a-Roo offers four different restaurant models for franchisees: traditional, drive-thru, end-cap, and conversion. These businesses provide products to customers under the Beef-a-Roo brand, utilizing the franchisor's distinctive operating procedures and standards from a single location within a defined territory.
Corporate History
Elysian Franchise Company, LLC was formed in Texas on May 20, 2021, and operates under the Beef-a-Roo brand. The company, through its affiliate Beef-A-Roo OpCo, LLC, acquired the Beef-a-Roo brand in September 2019 from Beef-A-Roo, Inc., an Illinois corporation that operated existing restaurants. Elysian Franchise Company began offering Beef-a-Roo franchises in January 2022 and only offers franchises for this brand.
Financial Overview
Investment Range
$466,700 - $1,468,500
Franchise Fee (Low)
$38,000
Franchise Fee (High)
$49,500
Minimum Cash Required
$25,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$315,000
Equipment Costs (High)
$1,098,000
Working Capital
$37,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
The auditors for Beef-a-Roo have raised substantial doubt about Elysian Franchise Company, LLC's ability to continue as a going concern due to incurring significant net losses of $2,306,539 in 2023 and $1,446,204 in 2022. Additionally, the company's liabilities exceeded its assets by $3,169,381 in 2023 and $862,842 in 2022.
Financing Details
Beef-a-Roo does not offer any direct or indirect financing options to its franchisees. Franchisees will need to secure their own funding and Beef-a-Roo will not guarantee any loans, leases, or other financial obligations on their behalf.
Performance Metrics
Total US Locations
8
Franchised Units
0
Corporate Units
8
Avg Square Footage
4,000
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Beef-a-Roo has no litigation to report in this section, indicating a clean legal history for the franchise.
Bankruptcy History
Beef-a-Roo has no bankruptcy history to report for the franchisor or its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Beef-a-Roo franchisees must be in full compliance with their current agreement, have committed no more than three defaults during the term, and provide written notice to Beef-a-Roo at least six months before the current term ends. They must also have the right to continue occupying their business premises or receive approval to relocate, pay a successor agreement fee (the greater of 50% of the then-current initial franchise fee or $17,500), and refurbish or replace their business assets to meet current specifications. Additionally, franchisees must execute a general release of claims, comply with current qualifications and training requirements (including additional training), and sign a new franchise agreement, which may have different terms.
Training & Support Program
Franchisor Assistance
Beef-a-Roo provides franchisees with a range of assistance. Before opening, Beef-a-Roo helps by reviewing and advising on potential locations, providing criteria for layout, design, and build-out, and offering a list of specifications and approved suppliers for equipment, signs, fixtures, and initial inventory. Beef-a-Roo also grants access to its Brand Standards Manual, conducts an initial training program for up to three people (with no tuition fee), reviews pre-opening business plans and financial projections upon request, and advises on market introduction plans. Additionally, Beef-a-Roo provides at least 14 days of on-site support during the business opening at its own expense. After opening, Beef-a-Roo offers advice on business improvement, development, and resolving operating problems (by telephone or electronic communication, with a fee for in-person support). It provides recommended prices and procedures for administration, bookkeeping, accounting, and inventory control. Beef-a-Roo also administers the Brand Fund and maintains a brand website that includes the franchisee's business information.
Initial Training Hours
197
Training Location
Webinar and Royal Oak, MI or Athens, GA
Ongoing Support
Beef-a-Roo provides ongoing support through telephone or electronic communication for improving and developing the business, and resolving operating problems. In-person support is available upon request for a fee. Beef-a-Roo provides recommended prices for products and services, as well as procedures for administration, bookkeeping, accounting, and inventory control. The franchisor administers a Brand Fund and maintains a brand website that lists franchisee businesses. Additionally, Beef-a-Roo may offer mandatory or optional additional training programs, and franchisees may be required to attend an annual meeting, conference, or convention for up to three days per year.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Absentee Allowed
Territory Type
Exclusive
Territory Size Requirements
Beef-a-Roo territories are defined individually based on factors such as household numbers, average home prices, and household incomes. A typical territory for a suburban location is a five-mile radius around the business address, while an urban location typically covers eight city blocks.
Staffing Notes
Beef-a-Roo franchisees must designate and employ a full-time General Manager responsible for the daily supervision, management, and operation of the business. While Beef-a-Roo recommends that the franchisee or a principal act as the General Manager, it is not required. The General Manager must meet Beef-a-Roo's standards and criteria, be individually acceptable, and successfully complete the initial management training program. All personnel with access to proprietary and confidential information, including the General Manager, must sign a Confidentiality and Non-Compete Agreement. Additionally, all hiring decisions and employment conditions are the sole responsibility of the franchisee.