Bobby's Burgers by Bobby Flay logo

Bobby's Burgers by Bobby Flay Franchise

Audited Financials
Food and BeverageEst. 2021Charlotte, NC
www.bobbysburgers.com

Risk Score

Pending analysis

Investment Range

$559,300 - $3,167,800

Franchise Fee

$36,000

Total US Locations

3

Business Summary

Bobby's Burgers by Bobby Flay operates restaurants that offer quick-serve burgers and fries, along with other authorized food and beverages. These restaurants provide options for eat-in or take-out in a family-friendly setting, characterized by contemporary, warm, and lively décor. Some locations may also feature a bar offering approved beer, wine, and spirits. All menu items are prepared according to the franchisor's specified recipes and procedures, potentially utilizing proprietary or branded products.

Corporate History

Intelligration Capital BB, LLC, operating as Bobby's Burgers by Bobby Flay, was formed in Delaware on November 8, 2021. The brand began offering franchises in April 2022. Its parent company is Intelligration Capital, LLC, also based in Delaware. On August 2, 2022, Intelligration Capital BB, LLC secured an Amended and Restated Master License Agreement with BB License, LLC, granting it the exclusive global rights to develop, operate, and franchise restaurants using the 'Bobby's Burgers by Bobby Flay' system. BB License, LLC, in turn, is authorized by its affiliate, BBP, LLC, to grant these rights. Celebrity chef Bobby Flay is involved in menu development, product research, and public relations for the System, but he does not hold an ownership interest in the franchisor.

Financial Overview

Investment Range

$559,300 - $3,167,800

Franchise Fee (Low)

$36,000

Franchise Fee (High)

$40,000

Royalty %

6%

Marketing %

1%

Equipment Costs (Low)

$350,000

Equipment Costs (High)

$1,707,000

Working Capital

$72,500

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

The auditors for Bobby's Burgers by Bobby Flay have issued an unqualified opinion on the financial statements, indicating that they present fairly in all material respects the financial position and results of operations. However, the Special Risks section of the Franchise Disclosure Document notes that Bobby's Burgers by Bobby Flay is at an early stage of development and has a limited operating history, which means it may be a riskier investment compared to franchises with longer operational track records.

Financing Details

Bobby's Burgers by Bobby Flay does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other obligations of its franchisees.

Performance Metrics

Total US Locations

3

Franchised Units

2

Corporate Units

1

Avg Square Footage

2,200

Franchising Since

2022

Agreement Terms

Initial Term

10 years

Renewal Term

5 years

Renewal Conditions

To renew the franchise agreement, Bobby's Burgers by Bobby Flay franchisees must meet several conditions. They must be in full compliance with all agreements with the franchisor and its affiliates, without a history of repeated breaches. Franchisees must provide written notice of their intent to renew between six and twelve months before the current term ends, and pay a renewal fee equal to 50% of the then-current Initial Franchise Fee (this fee will not exceed the amount of the original Initial Franchise Fee). They are also required to remodel and update their restaurant to meet the franchisor's current standards. Furthermore, franchisees must sign the franchisor's then-current form of franchise agreement (which may have different terms, but the renewal term will be five years), execute a general release of the franchisor, and attend any required training programs or refresher courses. The franchisor also reserves the right to object to the renewal.

Training & Support Program

Franchisor Assistance

Bobby's Burgers by Bobby Flay provides extensive support to its franchisees. Before opening, the franchisor assists with identifying site selection areas, approving premises and lease terms, and designating the franchise territory. Franchisees receive the Confidential Operations Manual and detailed standards and specifications for the restaurant. The franchisor also helps identify necessary furnishings, fixtures, equipment, and supplies, and coordinates a grand opening promotional advertising program. Initial training is provided for up to two individuals. Once the restaurant is operational, Bobby's Burgers by Bobby Flay maintains a continuous advisory relationship, consulting on marketing, merchandising, and general business operations. They provide updated operating standards and conduct periodic inspections to ensure quality. A franchisor representative visits the restaurant for up to five days during opening week at the franchisor's expense, and further on-site assistance can be requested for a fee. The franchisor also assists with resolving operating problems, reviews proposed relocation sites, and may set pricing requirements for products and services. Franchisees have the option to renew their agreements.

Initial Training Hours

131

Training Location

Charlotte, North Carolina

Ongoing Support

After opening, Bobby's Burgers by Bobby Flay franchisees receive continuous advisory support on marketing, merchandising, and general business operations. The franchisor provides ongoing information on operating standards, which may be updated periodically. To maintain high standards, the franchisor conducts regular inspections and quality service checks. Upon request, the franchisor offers assistance in resolving operating problems. They also review and approve proposed restaurant relocation sites. Bobby's Burgers by Bobby Flay may establish pricing requirements for products and services. Franchisees have the option to renew their franchise agreements if they meet the specified conditions. Additionally, franchisees and their designated personnel are required to attend mandatory refresher training programs, conferences, and seminars, for which there may be a nominal registration fee and franchisees are responsible for their own travel, lodging, and meal expenses.

Franchise Requirements

Ideal Candidate Profile

Bobby's Burgers by Bobby Flay is seeking individuals to serve as Operating Principals who are willing to devote their full time and best efforts to supervising and conducting the restaurants. Ideal candidates must successfully complete the franchisor's training system, own a majority equity interest in their operating entity, and be approved by the franchisor. They must also be able to read and write English fluently to effectively complete training and communicate with employees, customers, and suppliers. Franchisees are expected to ensure all employees are trained in the franchisor's procedures and that managers and customer service staff are proficient in English and other necessary languages.

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

retail

Owner Participation

full-time

Territory Type

protected

Territory Size Requirements

Bobby's Burgers by Bobby Flay franchise territories are defined on an individual basis and will be outlined in each specific Franchise Agreement. The territory for a single restaurant may be a geographic area, a non-traditional location like an airport terminal, train station, or stadium, or simply the four walls of the restaurant itself. For multi-unit development, an 'Area' (typically a city, cities, or counties) is granted in a Development Agreement Rider. The franchisor considers factors such as location, adjacent economic profiles, captive population, accessibility, competition, and proximity to major retail and business activity when establishing a proposed Franchise Territory or Area. However, the document does not specify a minimum measurable size (e.g., a specific mile radius or population count) for these territories.

Staffing Notes

Bobby's Burgers by Bobby Flay requires that the franchisee's Operating Principal or a franchisor-approved General Manager, who has successfully completed the training system, be present at the restaurant at all times. If managed by a General Manager, they must work at least 40 hours per week on-premises. Franchisees are solely responsible for hiring and training their employees to adhere to the franchisor's procedures. Managers and all employees whose duties involve customer service must be fluent in English, and any other language necessary for public interaction. All personnel must wear franchisor-approved uniforms. The franchisor mandates that restaurants operate a minimum of seven days a week and 70 hours per week, or the hours required by the lease, whichever is greater. Managers and other employees may also be required to sign confidentiality and non-competition agreements.