Risk Score
Pending analysis
Investment Range
$315,000 - $1,084,500
Franchise Fee
$30,000
Min Cash Required
$30,000
Total US Locations
5
Business Summary
Hickory River Smokehouse operates family-oriented restaurants featuring Texas-style barbecue food products like ribs, pork, beef brisket, chicken, and sandwiches, along with other items and beverages including beer and wine. These restaurants offer both on-premises dining and carry-out options.
Corporate History
Hickory River Smokehouse, Inc. was incorporated in Illinois on February 26, 2003, and began offering franchises under the Hickory River Smokehouse name in March 2003. The company currently operates one corporate restaurant in Ft. Walton, Florida, and has operated other restaurants in the past. Hickory River Smokehouse also holds the rights to develop a franchise system for Longhorn Smokehouse, a similar Texas-style barbecue concept, which was an affiliate that closed in 2020. The first Hickory River Smokehouse restaurant was opened in January 1995, prior to the company's incorporation.
Financial Overview
Investment Range
$315,000 - $1,084,500
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$30,000
Minimum Cash Required
$30,000
Royalty %
5%
Marketing %
3%
Equipment Costs (Low)
$173,000
Equipment Costs (High)
$861,500
Working Capital
$67,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD's Special Risks section highlights that Hickory River Smokehouse's financial condition, as reflected in its financial statements, raises questions about its financial ability to provide services and support to franchisees.
Financing Details
Hickory River Smokehouse does not offer any direct or indirect financing to franchisees for any part of their investment. Franchisees are responsible for securing all necessary financing independently.
Performance Metrics
Total US Locations
5
Franchised Units
5
Corporate Units
0
Avg Square Footage
4,500
Franchising Since
2003
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Hickory River Smokehouse has no litigation history to report. Item 3 of the FDD states that no litigation is required to be disclosed.
Bankruptcy History
Hickory River Smokehouse has no bankruptcy history to report. Item 4 of the FDD states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Hickory River Smokehouse franchisees must be in good standing under their current Franchise Agreement, provide timely written notice of their decision to renew, sign a general release of claims, pay a renewal fee of $5,000, complete all then-current training, and sign the franchisor's then-current form of Franchise Agreement. Franchisees must also comply with modernization requirements for their restaurant or, if required, relocate to a new site that meets current criteria.
Training & Support Program
Franchisor Assistance
Before a Hickory River Smokehouse restaurant opens, the franchisor provides site selection criteria, lists of approved suppliers and products, a copy of the operations manual, and approval for all grand opening promotional materials. It also provides initial training programs and an Opening Team of up to four individuals for 6 to 10 days to assist with the initial operation. On an ongoing basis, Hickory River Smokehouse maintains a national marketing fund, updates approved supplier lists, conducts periodic visits for consultation, and offers refresher training courses. Franchisees are required to use a designated marketing firm for their annual marketing plan and to use a specific computer/POS system, which the franchisor can access for data. The franchisor consents to the site selection but does not guarantee success.
Initial Training Hours
240
Training Location
Training Restaurant designated by Hickory River Smokehouse in Illinois or Ohio
Ongoing Support
After opening, Hickory River Smokehouse franchisees receive ongoing support including updates to approved suppliers and products lists. The franchisor makes periodic visits to restaurants to provide consultation and guidance, and may require franchisees and their key employees to attend refresher training programs. The franchisor maintains and administers a national marketing fund to which franchisees contribute, and may require franchisees to participate in local advertising cooperatives. Franchisees must use and maintain a specific computer/POS system, and the franchisor can access data from this system. The franchisor may also develop and require franchisees to purchase in-restaurant training programs.
Franchise Requirements
Ideal Candidate Profile
Hickory River Smokehouse seeks franchisees who, or whose designated Certified Manager, possess prior restaurant or retail management experience. The Certified Manager must dedicate full-time effort to the on-premises, day-to-day management of the restaurant. Principal Owners are also required to attend training and ensure the restaurant's proper operation and management, indicating a need for committed and engaged ownership.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Limited
Staffing Notes
Each Hickory River Smokehouse restaurant must always have at least one Certified Manager, who is responsible for the full-time, day-to-day, on-premises management of the restaurant, and has the authority to direct business affairs and sign contracts. Additionally, the restaurant must have at least two assistant managers at all times. A Certified Manager must be present and actively supervising the restaurant whenever it is open for business. All employees are required to wear clean, approved uniforms. The franchisor explicitly states that it is not the employer or joint employer of any franchisee's employees, and franchisees are solely responsible for all employment-related matters.