Lumberjacks logo

Lumberjacks Franchise

Audited Financials
Food and BeverageEst. 2010Redding, CA
www.lumberjacksrestaurant.com

Risk Score

Pending analysis

Investment Range

$595,900 - $1,535,050

Franchise Fee

$40,000

Total US Locations

8

Business Summary

Lumberjacks Restaurants are casual, family-style establishments that offer signature entrees with generous portions in a relaxed setting. Lumberjacks Restaurants focus on providing customers with made-to-order dishes using fresh ingredients, along with authorized beverage and menu items. Each Restaurant operates under the Lumberjacks Restaurant proprietary marks and a unique operating system that includes valuable know-how, trade secrets, and a distinctive log cabin exterior and interior appearance.

Corporate History

Lumberjacks Franchises, Inc. was incorporated in California on December 16, 2010, and began offering franchises in March 2011. The company focuses on franchising single Lumberjacks family-style restaurants. An affiliate, JS Lyons, Inc., which operates one Lumberjacks Restaurant in California, was incorporated in March 2003.

Financial Overview

Investment Range

$595,900 - $1,535,050

Franchise Fee (Low)

$40,000

Franchise Fee (High)

$40,000

Royalty %

4%

Marketing %

0.5%

Equipment Costs (Low)

$450,000

Equipment Costs (High)

$1,276,000

Working Capital

$70,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Lumberjacks Franchises, Inc. appears to have a stable financial position. As of December 31, 2023, the company reported positive net income of $107,428 and maintains cash and cash equivalents of $94,673. The independent auditor has issued an unqualified opinion on the financial statements, indicating that they present fairly, in all material respects, the company's financial position and results of operations.

Financing Details

Lumberjacks Franchises, Inc. does not offer any direct or indirect financing to its franchisees. Additionally, the franchisor does not guarantee any lease obligations or other financial commitments made by the franchisee.

Performance Metrics

Total US Locations

8

Franchised Units

7

Corporate Units

1

Avg Square Footage

4,750

Franchising Since

2011

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew their Lumberjacks Restaurant franchise, franchisees must have substantially complied with all agreement provisions throughout the initial term and not be in default at the time of renewal. They must have the right to occupy the approved location for the renewal term and have remodeled or redecorated the restaurant to meet current brand standards. Franchisees are required to provide notice of their intent to renew between 12 and 9 months before the initial term ends, sign the then-current franchise agreement (which may have different terms), comply with all current training requirements, satisfy all monetary obligations to Lumberjacks Franchises, Inc. and its affiliates, pay a $5,000 renewal fee, and sign a general release of claims against the franchisor.

Training & Support Program

Franchisor Assistance

Lumberjacks Franchises, Inc. provides franchisees with various forms of assistance. Before opening, the franchisor may offer general site selection guidelines, provide layouts and specifications for the restaurant's design, decor, and equipment, and make available the proprietary Decor Package and Statue Package from designated suppliers. Franchisees and their managers receive an initial training program of approximately 160 hours over four weeks. The franchisor also loans one copy of the Operations Manual and provides product specifications and approved vendors. After opening, Lumberjacks Franchises, Inc. provides approximately 14 days of on-site assistance and guidance, offers telephone, email, and newsletter support, and conducts periodic field representative visits for consultation and guidance. The franchisor may also provide additional training programs, organize an annual convention, and assist with grand opening advertising.

Initial Training Hours

160

Training Location

Redding, CA

Ongoing Support

After opening their Lumberjacks Restaurant, franchisees receive approximately 14 days of on-site assistance and guidance to facilitate operations. Lumberjacks Franchises, Inc. makes representatives available to advise and offer general guidance by telephone, electronic mail, facsimile, and newsletters. Field representatives may conduct periodic visits to provide consultation and assistance. The franchisor may also provide additional training programs and courses, which can be optional or mandatory, with mandatory programs provided without tuition. Lumberjacks Franchises, Inc. may also establish and administer an annual convention for system franchisees.

Franchise Requirements

Ideal Candidate Profile

Lumberjacks Franchises, Inc. prefers that prospective franchisees have prior restaurant management experience due to the competitive and mature nature of the quick casual dining and restaurant industry. Franchisees are expected to adhere to the franchisor's standards and guidelines, possess strong entrepreneurial and managerial abilities, and maintain a focus on customer service.

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

Lumberjacks Franchises, Inc. grants franchisees a protected territory that typically encompasses an approximate 3-mile radius around the restaurant in suburban or rural areas. In urban areas, the territory is usually a 0.25-mile radius. There is no minimum size for a territory in metropolitan areas. The perimeter of the territory may be defined by street boundaries, county lines, state lines, or municipal boundaries.

Staffing Notes

Lumberjacks Franchises, Inc. requires that the Restaurant be under the direct full-time supervision of either the franchisee (if an individual) or a general manager (if a business entity). For franchisees operating multiple Restaurants, management duties for additional units may be delegated to a general manager who has completed the franchisor's training program. The franchisor provides initial training for the franchisee, general manager, and assistant manager, as well as training modules for line cooks, prep cooks, and head servers. Franchisees are solely responsible for all employment decisions and compliance with labor laws.