Bombshells Restaurant & Bar Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$2,094,000 - $5,653,500
Franchise Fee
$40,000
Min Cash Required
$80,000
Total US Locations
12
Business Summary
Bombshells Restaurant & Bar operates military-themed restaurants and sports bars that offer a wide variety of menu items and both alcoholic and non-alcoholic beverages. A key part of the experience are the "Bombshell Girls" who wear military-inspired uniforms and are responsible for entertaining and interacting with customers while serving food and drinks, creating a critical part of the restaurant's energy and atmosphere.
Corporate History
BMB Franchising Services, Inc. was formed in Texas on March 4, 2015, operating as a wholly owned subsidiary of RCI Hospitality Holdings, Inc. The Bombshells Restaurant & Bar concept itself began operations earlier, with an affiliate of BMB Franchising Services, Inc. opening the first Bombshells Restaurant on February 27, 2013. BMB Franchising Services, Inc. started offering franchises for this military-themed restaurant and sports bar concept on October 30, 2015, and has since focused exclusively on developing this franchise system.
Financial Overview
Investment Range
$2,094,000 - $5,653,500
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$50,000
Minimum Cash Required
$80,000
Royalty %
5.5%
Marketing %
3%
Equipment Costs (Low)
$1,800,000
Equipment Costs (High)
$5,183,000
Working Capital
$115,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Bombshells Restaurant & Bar (BMB Franchising Services, Inc.) has experienced recurring losses since its inception, with its cash flow being funded by its parent company, RCI Hospitality Holdings, Inc. Management believes that the parent company will continue to provide financial support to ensure Bombshells Restaurant & Bar's ongoing operations. The franchisor's financial condition, as noted in the financial statements, raises questions about its financial ability to consistently provide services and support to its franchisees.
Financing Details
Bombshells Restaurant & Bar does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other financial obligations for its franchisees. Franchisees are solely responsible for securing their own financing through third-party lenders.
Performance Metrics
Total US Locations
12
Franchised Units
0
Corporate Units
12
Avg Square Footage
8,750
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
3
Litigation Summary
Bombshells Restaurant & Bar's parent company, RCI Hospitality Holdings, Inc., and its CEO, Eric Langan, have been involved in three disclosed legal matters. One shareholder derivative action, filed in January 2022, alleged false statements regarding related party transactions and internal controls. This case settled in October 2023, with $1,200,000 paid in attorneys' fees and expenses, without admission of liability. Another securities class action, filed in February 2020, also made allegations about false statements and internal controls, settling in August 2022 for $2,200,000 without admission of liability. Lastly, a civil administrative proceeding with the U.S. Securities and Exchange Commission (SEC), initiated and settled in September 2020, involved allegations of undisclosed executive compensation and related party transactions, as well as insufficient internal controls. RCI and Mr. Langan agreed to a cease-and-desist order and paid $400,000 and $200,000 respectively, without admitting or denying the findings.
Bankruptcy History
Bombshells Restaurant & Bar has no bankruptcy history to disclose in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, Bombshells Restaurant & Bar franchisees must meet several conditions. These include providing written notice between six and nine months before the initial term ends, refurbishing and upgrading the restaurant to meet current brand standards, being in good standing with no defaults on any agreements or monetary obligations, and demonstrating the right to possess the franchise location for the renewal term. Franchisees must also sign the then-current form of renewal franchise agreement, which may have different terms such as higher royalty fees or advertising contributions. Additionally, a general release of claims against the franchisor and its affiliates must be signed, current qualification and training requirements must be met, and a renewal fee equal to one-half of the then-current initial franchise fee must be paid at least 30 days before the expiring term ends.
Training & Support Program
Franchisor Assistance
Bombshells Restaurant & Bar provides comprehensive assistance to its franchisees. Before opening, the franchisor offers site selection guidelines and on-site evaluations, prototype architectural plans, and access to operations manuals. It provides a list of approved suppliers and conducts an initial training program for owners, operating principals, district managers, and restaurant managers. For the first three restaurants, an Opening Training Team offers on-site pre-opening and opening training, supervision, and assistance. During operation, the franchisor conducts periodic evaluations, including a 'mystery shopper' program. It administers an advertising fund, provides advertising and promotional materials, and offers advice and written materials on managing and operating the restaurants. Franchisees receive updated lists of approved suppliers, access to additional training programs and seminars, and may also be provided with proprietary software programs.
Initial Training Hours
330
Training Location
Houston, Texas
Ongoing Support
Bombshells Restaurant & Bar provides ongoing support to its franchisees through periodic evaluations of operations, including mystery shopper visits, for which franchisees are responsible for the costs. The franchisor also manages an advertising fund and provides marketing and promotional materials. Bombshells Restaurant & Bar offers operational advice and written materials that cover management techniques, system improvements, and new developments. Franchisees receive updated lists of approved suppliers and may be required to attend additional training programs and seminars. Proprietary software programs are available on loan, potentially with a license fee. The franchisor may also offer on-site remedial training, subject to personnel availability and a per diem fee plus travel, lodging, and meal costs for the training team.
Franchise Requirements
Ideal Candidate Profile
Bombshells Restaurant & Bar seeks franchisees who can designate an approved Operating Principal to oversee the business. This Operating Principal, who does not necessarily hold an ownership stake, must meet the franchisor's qualifications, receive approval, and commit their full-time effort to supervising the restaurant's daily operations, unless a District Manager is appointed. The Operating Principal must successfully complete the franchisor's initial management training program and sign confidentiality, noncompetition, and non-solicitation agreements. Owners of the franchisee entity are required to sign a guaranty and assumption agreement, binding them to certain terms. Additionally, any individual owning 20% or more of the franchisee entity must attend an abbreviated initial training program.
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
Staff Count
16
Territory Size Requirements
Bombshells Restaurant & Bar defines its territories differently for single-unit and multi-unit agreements. For single-unit franchises, the Protected Area is defined as a specific mile radius around the franchise location, which is determined before the Franchise Agreement is signed, although no minimum size is guaranteed. For multi-unit development agreements, the territory can be an entire city, a portion of a city, a single-county, or multi-county area, or another specified geographic area. The exact size and boundaries for these development territories are determined based on local market conditions and the number of restaurants planned for development. These territories exclude reserved areas like shopping centers, amusement parks, sports stadiums, airports, and military bases, as well as any areas already assigned to other developers or franchisees.
Staffing Notes
Bombshells Restaurant & Bar requires a significant staff for its operations. Franchisees must designate and maintain at least six Restaurant Managers, specifically four front-of-house managers, one kitchen manager, and one business manager. These managers are expected to devote their full time and best efforts to the daily operation and management of the restaurant. Additionally, during the period when the Opening Training Team is on-site (for the first three restaurants), franchisees must also develop and maintain a team of Certified Trainers, consisting of two to four back-of-house trainers and six to eight front-of-house trainers, who are responsible for ongoing in-house training. All employees are required to wear military-inspired uniforms that conform to franchisor specifications and maintain a clean and neat appearance. The franchisor also stresses employing a "sufficient number of competent and trained employees to ensure efficient service to customers."