Pickleman's Gourmet Cafe Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$416,300 - $1,043,500
Franchise Fee
$10,000
Total US Locations
32
Business Summary
Pickleman's Gourmet Cafe operates quick-serve restaurants that specialize in toasted sandwiches, signature soups, salads, thin-crust pizza, and specialty beverages.
Corporate History
Pickleman's Franchising, LLC was formed in Missouri on August 20, 2007. The brand's history dates back to 2005 with its affiliate, Pickleman's, LLC, which also provided the experience upon which the Pickleman's Gourmet Cafe restaurants are based. Pickleman's Franchising, LLC began offering franchises in 2008. The company's business model involves granting franchises for quick-serve restaurants specializing in toasted sandwiches, soups, salads, thin-crust pizza, and specialty beverages under the "Pickleman's Gourmet Cafe" brand.
Financial Overview
Investment Range
$416,300 - $1,043,500
Franchise Fee (Low)
$10,000
Franchise Fee (High)
$35,000
Royalty %
6%
Marketing %
3%
Equipment Costs (Low)
$295,000
Equipment Costs (High)
$840,000
Working Capital
$45,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Pickleman's Franchising, LLC received an unqualified audit opinion for its financial statements. However, there are significant financial notes to consider. The company has a non-interest-bearing loan to its majority shareholder that increased to over $1 million by the end of 2024, with no established repayment agreement. Additionally, a lawsuit was filed against Pickleman's Franchising, LLC in January 2025, which may result in a future financial liability, though the potential amount cannot be estimated at this time.
Financing Details
Pickleman's Franchising, LLC does not offer any direct or indirect financing to its franchisees and does not guarantee franchisee notes, leases, or other obligations. Franchisees are responsible for securing their own funding.
Performance Metrics
Total US Locations
32
Franchised Units
31
Corporate Units
1
Avg Square Footage
1,900
Franchising Since
2008
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Summary
Pickleman's Franchising, LLC has no litigation to report in Item 3 of its FDD.
Bankruptcy History
Kenneth Michael Rice, who is the Chief Operating Officer for Pickleman's Franchising, LLC, along with Rebecca Destiny Rice, filed for Chapter 7 personal bankruptcy on November 8, 2018. This event occurred prior to Kenneth Rice's employment with Pickleman's Franchising, LLC. The bankruptcy was successfully discharged on May 2, 2019.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
Pickleman's Franchising, LLC franchisees must provide written notice of their intent to renew between 6 and 18 months before the initial term ends. To renew, they must be in full compliance with the current agreement, sign a new franchise agreement (which may have materially different terms and fees), execute a general release of claims, remodel their cafe to meet current standards, and pay a renewal fee equal to 25% of the then-current initial franchise fee. Pickleman's Franchising, LLC may also refuse to renew if the franchisee has been notified of more than two defaults during the initial or any renewal term, even if those defaults were later cured.
Training & Support Program
Franchisor Assistance
Before opening, Pickleman's Franchising, LLC assists with site selection criteria, approves proposed sites, provides suggestions for cafe layout and design, and offers a list of approved suppliers for necessary products and services. Pickleman's Franchising, LLC also provides an initial training program for the franchisee and designated managers, and loans a copy of the Confidential Operations Manual. After opening, Pickleman's Franchising, LLC provides on-site opening assistance for 10 days (2 days before opening, 8 days after), continues to loan the Manual, and offers additional advisory assistance upon request, for which a reasonable fee may be charged. Pickleman's Franchising, LLC also manages an advertising fund, to which franchisees contribute 3% of gross sales, for national, regional, and local marketing campaigns, customer surveys, and public relations.
Initial Training Hours
400
Training Location
Existing Pickleman's Gourmet Cafe
Ongoing Support
After opening, Pickleman's Franchising, LLC offers continuing advisory assistance in operating the cafe; a reasonable fee may be charged for on-site visits by their representatives. Franchisees contribute a weekly Advertising Fee of 3% of Gross Sales to a marketing and advertising fund, which Pickleman's Franchising, LLC uses for national, regional, and local advertising programs, marketing materials, customer surveys, promotional campaigns, and public relations. Franchisees must also spend at least 2% of their Gross Sales on local advertising and promotions, which require pre-approval. Pickleman's Franchising, LLC provides technology support for the required POS computer system, and other designated software for CRM, social media, and inventory management. Refresher training programs may also be offered for an additional fee.
Franchise Requirements
Ideal Candidate Profile
Pickleman's Franchising, LLC is looking for franchisees who are willing to devote their best efforts to operating the Pickleman's Gourmet Cafe. While personal day-to-day participation is recommended, it is not strictly required. However, if the franchisee does not actively manage the cafe, they must hire two designated managers, and both the franchisee and the managers must successfully complete the initial training program. At all times, at least two individuals certified by Pickleman's Franchising, LLC must be capable of managing the restaurant. The principal owner is ultimately responsible for carefully monitoring the performance of anyone designated to manage the cafe.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Pickleman's Franchising, LLC defines its Assigned Territory based on the specific site's demographics, with no minimum geographic territory. Typically, the Assigned Territory will be between a 1.25 to 2-mile radius around the Pickleman's Gourmet Cafe. This radius may be larger in rural areas or smaller in densely populated metropolitan areas.
Staffing Notes
Pickleman's Franchising, LLC requires that either the franchisee or a designated manager actively participates in the day-to-day management of the Pickleman's Gourmet Cafe. If the franchisee personally manages the cafe, they must also hire one designated manager, and both must complete the initial training. If the franchisee does not actively manage, then two designated managers must be hired, and all three (franchisee and two managers) must complete training. At all times, at least two individuals who have completed the initial training program or are otherwise certified by Pickleman's Franchising, LLC must be available to manage the cafe. Franchisees are solely responsible for all employment decisions, including hiring, firing, training, wage and hour requirements, and discipline. Pickleman's Franchising, LLC also mandates that all employees treat customers fairly and provide services ethically and non-discriminatorily.