Risk Score
Pending analysis
Investment Range
$247,826 - $471,400
Franchise Fee
$15,000
Total US Locations
1
Business Summary
Jerk King Franchising USA, LLC offers franchises for take-out and delivery restaurants specializing in Caribbean-style food, along with related products and services.
Corporate History
Jerk King Franchising USA, LLC was formed in February 2023. The broader Jerk King restaurant system has a longer history through its affiliates. Jerk King restaurants have been operating in Canada since 2008, with one affiliate corporation organized in January 2006 that has operated restaurants in Canada. Another affiliate has operated a Jerk King restaurant in Minnesota since May 2022. Jerk King Franchising USA, LLC itself has not yet sold any franchises and has no predecessors or parents. The company holds licensed rights from a Canadian affiliate to use the Jerk King system and trademarks in the U.S.
Financial Overview
Investment Range
$247,826 - $471,400
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$30,000
Royalty %
5%
Equipment Costs (Low)
$105,926
Equipment Costs (High)
$295,500
Working Capital
$36,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Jerk King Franchising USA, LLC's financial condition is noted as calling into question its ability to provide services and support to franchisees. The company's operations have been funded through contributions from its member since its inception in February 2023. As of December 31, 2024, Jerk King Franchising USA, LLC had cash of $75,463 and recorded a net loss of $59,146 for the year. Management intends to continue funding operations through member contributions, if needed, to meet its financial requirements for one year from the date the financial statements were issued.
Financing Details
Jerk King Franchising USA, LLC does not offer any direct or indirect financing options to its franchisees. The company also does not guarantee any loans, leases, or other financial obligations for franchisees.
Performance Metrics
Total US Locations
1
Franchised Units
0
Corporate Units
1
Avg Square Footage
1,000
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Jerk King Franchising USA, LLC has no litigation to report.
Bankruptcy History
Jerk King Franchising USA, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, Jerk King Restaurant franchisees must notify the franchisor in writing 6 to 9 months before their initial agreement expires. They must have fully complied with the franchise agreement and brand standards throughout the initial term and paid all money owed to Jerk King Franchising USA, LLC, its affiliates, their landlord, and suppliers. Franchisees and their Business Managers must also complete any new required training at their own expense. A successor franchise fee, equal to 50% of the then-current Initial Franchise Fee (not to exceed the original Initial Franchise Fee for the first renewal), must be paid. Franchisees need to show they can renew their current lease or secure an approved new location without interrupting business. Finally, they must sign a general release and execute Jerk King Franchising USA, LLC's then-current franchise agreement, which may contain materially different terms, although the initial fee, renewal term length, territory boundaries, and royalty rate will be capped as defined in the original agreement.
Training & Support Program
Franchisor Assistance
Jerk King Franchising USA, LLC provides extensive support to its franchisees, starting before the restaurant opens and continuing throughout the agreement term. Before opening, Jerk King Franchising USA, LLC assists with territory designation, site selection, and lease or purchase agreement approval. The franchisor reviews and approves final construction plans and specifications, and provides a confidential operating manual called the Brand Standards, along with written specifications for required products and services. Jerk King Franchising USA, LLC sells its proprietary spices, marinates, and packaging to franchisees, and approves any advertising or promotional materials. They also provide requirements for personnel selection, training, and duties, and may influence pricing. For a franchisee's first restaurant, on-site pre-opening and opening assistance is provided, with expenses reimbursed by the franchisee. After opening, Jerk King Franchising USA, LLC offers ongoing field support, supervision, and consultation through various communication methods. They continue to approve advertising, furnish product specifications, and sell proprietary products. Jerk King Franchising USA, LLC may establish a System Advertising Fund for national and regional advertising, to which franchisees would contribute 3% of gross revenues, and also conducts a pre-opening publicity campaign for which franchisees reimburse costs. The franchisor mandates the use of specific computer hardware, software, and a Clover POS system, and has independent access to sales data. Initial training for up to three people (including the franchisee and Business Manager) is provided at no additional cost (excluding travel/living expenses) at a corporate-owned restaurant in Bloomington, Minnesota or Toronto, Canada, covering various aspects of restaurant operation. Additional or ongoing training programs and annual conferences may be required, with franchisees covering their own expenses and potentially a fee for additional trainees.
Initial Training Hours
80
Training Location
Our affiliate's Restaurant in Bloomington, Minnesota or Toronto, Canada
Ongoing Support
After opening, Jerk King Franchising USA, LLC provides ongoing field support, supervision, and assistance through various methods like on-site visits, off-site sessions, and electronic communication. Franchisees can also contact headquarters for consultation regarding their restaurant's operation and management. Jerk King Franchising USA, LLC may also develop and require attendance at additional training programs, as well as annual conferences, conventions, or training sessions, with franchisees covering their own expenses for these. The company also oversees the System Advertising Fund, managing marketing and promotional programs for franchisees.
Franchise Requirements
Ideal Candidate Profile
Jerk King Franchising USA, LLC seeks individuals or entities to operate their take-out and delivery Jerk King restaurants specializing in Caribbean-style food. If an individual, the franchisor recommends personally serving as the Business Manager, who will have day-to-day management responsibility and exercise on-premises supervision. If an entity, a Business Manager must be designated who actively participates in the direct operation of the business, has at least a 10% equity interest in the franchisee entity, and must successfully complete the Initial Training Program. For Area Development Agreements, an Area Business Manager is required to oversee all Jerk King Restaurants, must be certified to manage multi-unit operations, possess at least a 10% interest in the business entity, and must not hold other positions in the organization. The franchisor approves all Business Managers and Area Managers. Ideal candidates are expected to demonstrate strong skills, qualifications, financial condition, background, reputation, economic resources, education, managerial and business experience, and moral character. They must also agree not to be involved in competing businesses. Franchisees must also staff their restaurants with at least one Restaurant Manager on duty during all operating hours. The franchisor relies on the singular personal skills and qualifications of the franchisee or their owners and managers.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Staff Count
8
Territory Size Requirements
Jerk King Franchising USA, LLC defines territories based on location type. For suburban areas, a territory typically includes at least 200,000 residents within a 4-mile radius. In urban areas, a territory will have at least 10,000 daytime or workplace population within 1 square mile. The specific size also considers factors like neighboring businesses, demographics, visibility, accessibility, and zoning.
Staffing Notes
Jerk King Franchising USA, LLC requires franchisees to staff their restaurants with enough competent and trained personnel to efficiently serve customers, adhering to specific criteria outlined in the Brand Standards for selection, hiring, and training. Franchisees must ensure employees maintain good customer relations and comply with appearance, dress code, and demeanor standards. At least one Restaurant Manager must be on duty during all operating hours. Uniforms are required for roles such as servers and chefs. Franchisees are also responsible for conducting in-house meetings and training sessions to keep staff updated on the latest system procedures.