Risk Score
Pending analysis
Investment Range
$1,022,000 - $1,414,350
Franchise Fee
$20,000
Min Cash Required
$32,500
Total US Locations
95
Business Summary
Newk's Eatery operates fast-casual restaurants specializing in fresh tossed salads, oven-baked sandwiches, hand-crafted pizzas, made-from-scratch soups, and homemade cakes. Newk's Eatery locations use the franchisor's unique recipes, techniques, and branding for their menu items and trade dress. The restaurants offer dine-in, "Newk's To Go," "Grab-N-Go," and off-premise services like catering and third-party delivery.
Corporate History
Newk's Franchise Company, LLC was established as a Mississippi limited liability company in January 2005. The first Newk's Restaurant, which is now company-owned, opened in February 2004. Newk's began offering franchises for its fast-casual restaurant concept in February 2005. In November 2023, the parent company, Newk's Holding Company, LLC, was acquired by holding companies controlled by CSFC Management Company, LLC, a private investment firm. Newk's also has affiliated entities such as Newk's Marketing Company, LLC, which administers the National Marketing Fund, and Newk's Bakery Company, LLC, which serves as a sole approved supplier for certain baked dessert goods.
Financial Overview
Investment Range
$1,022,000 - $1,414,350
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$40,000
Minimum Cash Required
$32,500
Royalty %
5%
Marketing %
1.75%
Equipment Costs (Low)
$475,000
Equipment Costs (High)
$650,000
Working Capital
$36,250
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The independent auditor for Newk's Holding Company, LLC, which is the franchisor's parent company, has issued an unqualified opinion on the consolidated financial statements, indicating that they present fairly in all material respects. While the auditor's responsibilities include evaluating the company's ability to continue as a going concern, their report does not express a qualified opinion regarding this matter. The financial statements show a net loss in 2022 and 2023, but a net income in 2024, and the member's equity is negative but improving.
Financing Details
Newk's Franchise Company, LLC does not currently offer any direct or indirect financing options to its franchisees, nor does it guarantee their loans, leases, or other financial obligations. While Newk's Franchise Company, LLC may consider offering indirect financing in the future, franchisees should plan to secure all necessary funding from third-party sources.
Performance Metrics
Total US Locations
95
Franchised Units
66
Corporate Units
29
Avg Square Footage
3,400
Franchising Since
2005
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Newk's Franchise Company, LLC has no litigation to report in this section.
Bankruptcy History
Newk's Franchise Company, LLC has no bankruptcy history to report in this section.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Newk's Eatery franchisees must provide written notice between 6 to 12 months before the current term ends. They must have no overdue payments or outstanding obligations to Newk's Franchise Company, LLC or its affiliates, and must have substantially complied with all terms of their agreements. Franchisees are required to sign a mutual general release of claims against Newk's Franchise Company, LLC and its affiliates, execute Newk's Franchise Company, LLC's then-current franchise agreement (which may have different terms and higher fees), meet current qualification and training requirements, renovate the premises to reflect current brand standards, prove they have the right to occupy the premises for the renewal term, and demonstrate sufficient financial resources.
Training & Support Program
Franchisor Assistance
Newk's Franchise Company, LLC provides extensive assistance to its franchisees, starting before the restaurant opens and continuing throughout its operation. Before opening, Newk's Eatery helps with identifying suitable sites and approves locations. It provides prototype design plans and specifications for construction and layout, though franchisees must hire approved architects and contractors. Newk's Eatery offers a six-week initial training program for up to four managers and provides on-site pre-opening and opening supervision. It also lends its Standard Operating Procedures (SOP) manual and helps develop the grand opening advertising program. After opening, Newk's Eatery offers ongoing support through periodic inspections and evaluations, additional training programs, and advisory assistance on marketing, management, and operations. It also administers the National Marketing Fund and determines advertising obligations for franchisees.
Initial Training Hours
300
Training Location
Franchisor's Support Center in Jackson, Mississippi and company-owned Certified Training Restaurants in the Jackson, Mississippi area
Ongoing Support
Newk's Eatery provides ongoing support to franchisees through periodic inspections and evaluations of the restaurant's operations. Newk's Eatery offers periodic advisory assistance on marketing, management, and general operations. Franchisees and their managers may be required to attend refresher courses and seminars, typically not exceeding five days per individual per year, held at the Support Center or other designated Certified Training Restaurants. Newk's Eatery also provides an online learning management system (Opus) with video tutorials and interactive testing for continuous training in brand standards.
Franchise Requirements
Ideal Candidate Profile
Newk's Franchise Company, LLC is seeking qualified individuals or entities. Ideal candidates must designate a "Designated Principal" who owns at least a 10% beneficial interest in the franchisee entity and has satisfactory prior restaurant operations experience. This Designated Principal must also successfully complete the initial training program. If the Designated Principal is not involved full-time in daily operations, the franchisee must employ a qualified, full-time general manager who will successfully complete the initial training program.
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
protected
Territory Size Requirements
Newk's Eatery defines the Protected Area for each franchise on a site-by-site basis, considering factors like population density, neighborhood character, traffic patterns, and local trade areas. While there is no specified minimum size, the Protected Area typically extends for at least a half-mile radius around the approved restaurant location, with the exception of densely populated urban areas where it might be smaller.
Staffing Notes
Newk's Eatery requires franchisees to maintain a competent and conscientious staff that provides prompt, courteous, and knowledgeable service, adheres to prescribed uniforms or dress codes, and meets minimum standards set by Newk's Franchise Company, LLC. Franchisees must employ and have on duty a specified number of certified managers, which is generally four, including the General Manager. The exact number of required managers can vary based on anticipated sales volume and other relevant factors. Certified Managers are responsible for training the rest of the staff. Shift leaders who complete a specific certification program may perform certain managerial duties.