Frank & Furter’s Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$351,400 - $874,550
Franchise Fee
$31,500
Min Cash Required
$25,000
Total US Locations
3
Business Summary
Frank & Furter's offers franchises for the operation of restaurants specializing in hot dogs, sausages, and burgers with various toppings, alongside fresh-cut fries, shakes, and other foods and beverages including wine and beer. These restaurants provide a family-friendly, warm, and lively environment for eat-in or take-out service.
Corporate History
Frank & Furter's Franchising LLC was formed as an Arizona limited liability company on December 13, 2023. The company began offering franchises in March 2024. Frank & Furter's has not previously conducted business in this or any other line of business and has no predecessors or affiliates apart from its parent company, Franknfurters, Inc., a Delaware corporation, which owns and licenses the brand's trademarks to the franchisor.
Financial Overview
Investment Range
$351,400 - $874,550
Franchise Fee (Low)
$31,500
Franchise Fee (High)
$35,000
Minimum Cash Required
$25,000
Royalty %
6%
Marketing %
1.5%
Equipment Costs (Low)
$220,500
Equipment Costs (High)
$636,500
Working Capital
$32,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Frank & Furter's has audited financial statements as of December 31, 2024, and January 31, 2024. The franchisor's financial condition, as reflected in these statements, calls into question its financial ability to provide services and support to franchisees. For the period from February 1, 2024, through December 31, 2024, Frank & Furter's reported a net loss of $458,763 and member's equity of $247,542. The auditors, CliftonLarsonAllen LLP, issued an unqualified opinion, meaning the financial statements are presented fairly in all material respects according to generally accepted accounting principles. However, despite this, the franchisor itself highlights its financial condition as a special risk.
Financing Details
Frank & Furter's does not offer any direct or indirect financing to its franchisees. It also does not guarantee any notes, leases, or other obligations that franchisees may incur.
Performance Metrics
Total US Locations
3
Franchised Units
3
Corporate Units
0
Avg Square Footage
1,500
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Frank & Furter's has no litigation to report, as no litigation is required to be disclosed in this item.
Bankruptcy History
Frank & Furter's has no bankruptcy history to report, as no bankruptcy is required to be disclosed in this item.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Frank & Furter's franchisees must provide written notice between 6 to 12 months before the current term ends. They must pay a renewal fee equal to 25% of the then-current initial franchise fee for new franchisees and agree to remodel and update their restaurant to the franchisor's latest standards. Franchisees must also correct any existing operational deficiencies, satisfy current system standards, incorporate any new products or services, meet the current qualifications for new franchisees, and complete any required additional training and certification. Additionally, the franchisee and all guarantors must sign a general release of claims against Frank & Furter's and its affiliates, and sign the then-current form of franchise agreement, which will have a term of five years.
Training & Support Program
Franchisor Assistance
Before opening, Frank & Furter's assists franchisees with identifying a site selection area, approving the proposed premises and lease terms, and designating a protected territory. The franchisor provides a confidential operations manual, designates approved suppliers, and helps coordinate a grand opening promotional advertising program. Frank & Furter's also offers initial training for up to three individuals, covering material aspects of operating a restaurant. Once open, Frank & Furter's provides ongoing assistance by sharing operational standards, conducting periodic inspections to maintain quality, and offering support for resolving operational problems. A representative from the franchisor will visit the restaurant for up to three days during the opening week to help with operations and marketing, with longer periods available for an additional fee. Franchisees also have the option to renew their agreement if they meet certain requirements.
Initial Training Hours
145
Training Location
Scottsdale, Arizona, or a certified training store designated by Frank & Furter's
Ongoing Support
Frank & Furter's provides ongoing assistance to its franchisees by giving them information on operating standards, which can be modified as needed. The franchisor conducts periodic inspections and quality service checks to maintain high standards across all restaurants. A representative will provide up to three days of on-site support during the grand opening, with options for extended assistance at an additional cost. The franchisor also offers help in resolving operating problems. Franchisees can renew their agreement if they meet the required conditions. Additionally, Frank & Furter's may establish maximum, minimum, or other pricing requirements for products and services. Franchisees and their personnel may be required to attend mandatory refresher or additional training programs, conferences, and seminars, for which an ongoing training fee of up to $1,000 per day plus travel expenses may apply.
Franchise Requirements
Ideal Candidate Profile
Frank & Furter's requires that if a franchisee is an entity, they must designate an Operating Principal who owns a majority equity interest in the company. This Operating Principal must devote full time and best efforts to supervising and conducting the restaurants, successfully complete the initial training program, and be approved by the franchisor. Both the Operating Principal and General Manager must be able to read and write English fluently to complete training and communicate effectively. The franchisor also expects suitable persons of good character and reputation to be employed.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
Frank & Furter's generally defines the protected territory as a geographic area encompassing between a half-mile and one-mile radius from the front door of the franchisee's restaurant. This radius may be reduced in high-density population areas such as New York City, Los Angeles, San Francisco, Chicago, Boston, Miami, Denver, and Honolulu, or for non-traditional locations like airports or universities.
Staffing Notes
Frank & Furter's requires that its restaurants always be supervised on-premises by the franchisee, their Operating Principal, a General Manager, or another approved manager who has completed the initial training program. The franchisor must be kept informed of all supervisory employees. Managerial personnel must dedicate their full time and best efforts to managing and supervising the restaurant. Franchisees are solely responsible for hiring, compensating, and training their employees, including establishing a training program that meets the franchisor's standards. This also includes conducting criminal background checks and due diligence on all employees to ensure they meet high ethical standards for food service. Employees must be suitable persons of good character and reputation, conducting themselves competently and courteously, and adhering to dress, appearance, and hygiene standards specified in the operations manual.