New York Fries Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$450,000 - $1,233,400
Franchise Fee
$30,000
Min Cash Required
$25,000
Total US Locations
4
Business Summary
NEW YORK FRIES operates distinctive restaurants specializing in French fried potatoes, poutine, and premium hot dogs. The brand uses specific trademarks and a unique system including business format, operating procedures, food selection, menus, and distinctive premises. These NYF Restaurants also offer ancillary sales of other products.
Corporate History
Recipe Unlimited US, LLC was organized as a Delaware limited liability company on May 25, 2021, and began offering NEW YORK FRIES franchises in the United States on August 23, 2021. The company has no predecessors in the U.S. and is a wholly-owned subsidiary of Recipe Unlimited Corporation, a private Canadian corporation founded in 1954. This parent company has a longer history, having offered NEW YORK FRIES restaurant franchises in Canada since 1984. As of December 29, 2024, there were 104 franchised and 24 company-owned NEW YORK FRIES restaurants in Canada. The parent company and its affiliates also operate and franchise numerous other restaurant brands in Canada and, in some cases, the United States, including Swiss Chalet, Harvey's, Kelseys, Montana's, The Keg, and others, with some brands dating back to the 1950s.
Financial Overview
Investment Range
$450,000 - $1,233,400
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$30,000
Minimum Cash Required
$25,000
Royalty %
6%
Marketing %
2.5%
Equipment Costs (Low)
$306,000
Equipment Costs (High)
$954,100
Working Capital
$27,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial condition of Recipe Unlimited US, LLC, as reflected in its financial statements, calls into question the franchisor's financial ability to provide services and support to franchisees. However, its parent company, Recipe Unlimited Corporation (Canada), provides an absolute and unconditional guaranty to assume Recipe Unlimited US, LLC's duties and obligations under the Franchise Agreement should the franchisor become unable to perform them. The Parent's consolidated financial statements, prepared by KPMG LLP, received an unqualified opinion.
Financing Details
Recipe Unlimited US, LLC does not offer any direct or indirect financing to franchisees. The franchisor also does not guarantee any notes, leases, or other financial obligations of franchisees.
Performance Metrics
Total US Locations
4
Franchised Units
0
Corporate Units
4
Avg Square Footage
475
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
6
Litigation Summary
Recipe Unlimited US, LLC itself has no litigation to report. However, its Canadian parent company, Recipe Unlimited Corporation, is involved in six ongoing litigation cases, all in Canada. These cases primarily involve former franchisees or a master licensee. The disputes include claims of fraudulent and negligent misrepresentation, breach of contract, and breaches of the Ontario Arthur Wishart Act, with franchisees seeking significant damages (up to $4.9 million CAD). In return, Recipe Unlimited Corporation has denied these claims and filed counterclaims in some instances, seeking damages for breaches by franchisees. One case, involving a Harvey's franchisee, saw an initial termination reversed by an interlocutory injunction in January 2025, allowing the franchisee to operate month-to-month. Another case involves a former master licensee for NEW YORK FRIES in Northern India, which began arbitration in September 2023 due to contract frustration and breach claims related to the COVID-19 pandemic.
Bankruptcy History
Recipe Unlimited US, LLC has no bankruptcy information to report in this FDD. Item 4 states that no bankruptcy information is required to be disclosed for the franchisor.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, NEW YORK FRIES franchisees must provide written notice to the franchisor between 18 and 24 months before their initial term expires. They must not be in default of any material terms of their agreements (including the Franchise Agreement, Lease, and supplier agreements), nor have received five or more default notices in total, or three or more in any consecutive 12-month period, even if cured. Franchisees must also have the right to possess their premises for the renewal term, ensure the premises meet the franchisor's current image, standards, and specifications (which may require significant investment for renovations, capital expenditures, and new equipment, fixtures, and signs), and not be in default of any liquor or other required licenses. Additionally, franchisees must reimburse the franchisor for all reasonable legal fees and costs related to the renewal, sign a general release of claims (with some legal exceptions), and execute a new franchise agreement which may include different royalty rates, advertising contributions, and an altered or eliminated territory. Finally, franchisees and their designated employees must successfully complete any new or refresher training mandated by the franchisor.
Training & Support Program
Franchisor Assistance
Recipe Unlimited US, LLC provides franchisees with several forms of assistance. Before opening, the franchisor reviews and approves the proposed site and lease, offers an initial training program at no extra cost for key personnel (franchisee covers travel/living), and provides support staff to assist during the initial opening (at franchisee's cost). The franchisor also supplies standard plans and drawings for construction and information on approved suppliers, along with access to its operational guidelines. Once the NEW YORK FRIES restaurant is open, ongoing support includes advice on planning, operations, products, and promotions, as well as additional training programs and optional conferences. The franchisor also manages a general advertising fund and may specify retail pricing for products. For technology, the franchisor designates specific computer systems, software, and POS systems, and owns all data collected through these systems. The franchisor reserves the right to make changes to the System, including new trademarks, equipment, products, and techniques, which franchisees must implement at their own cost.
Initial Training Hours
128
Training Location
Toronto, Ontario, Canada and virtually
Ongoing Support
After opening, NEW YORK FRIES franchisees receive ongoing advice and guidance from the franchisor on various aspects of business operations, including product selection, promotional programs, bookkeeping, and general operating procedures. The franchisor may also provide additional training programs, refresher courses, seminars, and may hold System-wide or regional conferences, though travel and attendance costs are the franchisee's responsibility. The franchisor provides updated lists of approved suppliers and periodically updates its Guidelines and the System, which franchisees must implement. The franchisor grants continuous use of its Marks and confidential information. Furthermore, the franchisor has the right to inspect or audit financial records, the premises, and operations without prior notice. For advertising, the franchisor manages a general advertising fund (currently 2.5% of gross sales) and requires franchisees to spend not less than 1% of gross sales on local marketing. In terms of technology, the franchisor specifies and may require upgrades to the Digital System, Required Software, and POS Systems, and dictates the use of a designated telephone service. The franchisor owns all data collected through these systems and has independent access to it.
Franchise Requirements
Ideal Candidate Profile
NEW YORK FRIES is looking for qualified applicants who will devote their full-time attention to the establishment, development, and operation of the franchised business. If the franchisee is a corporate entity, a Designated Shareholder (holding at least 10% equity) or an Approved Manager must commit full-time to the business. Owners are required to make a personal investment of at least a 40% ownership interest in the franchised business, using funds that are unencumbered, not pledged, and not financed by the business's cash flow.
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
Staffing Notes
NEW YORK FRIES franchisees are responsible for hiring and training sufficient management, supervisory, and other personnel to ensure prompt, courteous, and efficient service. All managers and other personnel stipulated by the franchisor must successfully complete required training as outlined in the Guidelines before working in their capacity and as needed thereafter. A Designated Shareholder or Approved Manager must devote full-time attention to the daily operations of the franchised business. Franchisees must also ensure that the number of employees on duty at any given time is sufficient for operations.