Rooster & Rice Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$335,600 - $530,300
Franchise Fee
$25,000
Min Cash Required
$30,000
Total US Locations
11
Business Summary
Rooster & Rice operates fast-casual restaurants that offer healthy and clean Asian recipes to the general public for on-premise consumption. The business features a specific system, procedures, and trade secrets, identified by its trade names and marks.
Corporate History
Rooster & Rice Franchise, LLC was formed in April 2021 as a Delaware limited liability company and began offering franchises for its fast-casual restaurant concept in May 2021. The franchisor itself does not own or operate any Rooster & Rice businesses. Its parent company, R & R Holdings, LLC, was formed in California in 2015. Various affiliated entities, such as Rooster & Rice Marina, LLC, Rooster & Rice Too, LLC, and others, were formed between August 2016 and August 2021, and they own and operate a number of Rooster & Rice restaurants, primarily in California and one in Texas, which are substantially similar to the franchises offered.
Financial Overview
Investment Range
$335,600 - $530,300
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$35,000
Minimum Cash Required
$30,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$222,000
Equipment Costs (High)
$325,000
Working Capital
$40,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Rooster & Rice Franchise, LLC's financial statements show negative working capital and recurring losses from operations. These factors have led the auditors to raise substantial doubt about the company's ability to continue as a going concern. Management plans to address this by continuing to raise additional capital and increasing revenue through the sale of more franchises. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Financing Details
Rooster & Rice does not offer any direct or indirect financing to its franchisees. Additionally, Rooster & Rice does not guarantee any notes, leases, or other obligations that franchisees may incur.
Performance Metrics
Total US Locations
11
Franchised Units
1
Corporate Units
10
Avg Square Footage
750
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Rooster & Rice has no litigation history that is required to be disclosed in this Franchise Disclosure Document.
Bankruptcy History
Rooster & Rice has no bankruptcy history to report for the franchisor or its management.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Rooster & Rice franchise agreement, franchisees must be in good standing with Rooster & Rice and any of its affiliates, provide timely advance notice, pay the then-current renewal fee (currently 20% of the initial franchise fee), sign a new franchise agreement that may have different terms, ensure all payments are current, sign a general release of claims, and modernize their business to meet current brand standards. Franchisees must also submit their proposed lease agreement for the renewed term for review and approval.
Training & Support Program
Franchisor Assistance
Rooster & Rice provides franchisees with various forms of assistance. Before opening, this includes designating a territory, providing access to a confidential operations manual, offering site selection guidelines and assistance, providing prototype design plans and specifications, and assisting with an initial opening marketing initiative. Rooster & Rice also offers initial instruction and training. After opening, Rooster & Rice may provide periodic telephone and email assistance for daily operations, marketing, advertising, and personnel issues. Rooster & Rice also updates its manuals, offers training for replacement managers (for a fee), advises on supply sources, helps with sales promotions, administers a system-wide Brand Fund, and may provide access to manuals, franchisee resources, company news, a website, and print/television advertisements.
Initial Training Hours
90
Training Location
Corporate training facility in San Francisco or Menlo Park, California
Ongoing Support
After opening, Rooster & Rice franchisees receive periodic telephone and email assistance covering daily operations, marketing, advertising, and personnel issues, along with reviews and analyses of their operations. Rooster & Rice also updates its operations manuals to incorporate new developments. Training for replacement managers is available, though a fee may apply. Rooster & Rice advises on supplier sources, assists with sales promotions, administers a system-wide Brand Fund, and may provide access to online manuals, franchisee resources, company news, a standard web page on the Rooster & Rice website, and access to print and television advertisements.
Franchise Requirements
Ideal Candidate Profile
Rooster & Rice seeks individuals who will personally dedicate continuous efforts, supervision, and attention to their franchised business. For corporate entities, an Operating Principal or a trained manager must personally manage the business at all times. For area developers, Rooster & Rice considers financial resources, experience in the food service industry, business experience, and marketing and sales plans. Overall, the franchisor conducts various background checks, including criminal and financial inquiries.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
Limited
Territory Size Requirements
Rooster & Rice defines franchisee territories as a portion of a town, city, or county, or a group of contiguous zip codes. The size is determined individually based on demographic factors such as minimum numbers of households, average home prices, household incomes, population, median age, shopping patterns, trade areas, and natural or man-made boundaries. Territory size is at Rooster & Rice's discretion.
Staffing Notes
Rooster & Rice emphasizes active management, requiring that if the franchisee is an individual, they or a trained manager must personally manage the Rooster & Rice Business at all times. For legal entities, the Operating Principal or a trained manager must oversee daily operations. The Operating Principal and the manager are required to attend and successfully complete the initial training program, along with up to one additional staff member, covering areas like recipe management, menu preparation, guest service, inventory, ordering, scheduling, building maintenance, POS system operation, general management, marketing, compliance, human resources, safety, security, and weekly administration. Any replacement managers must also undergo and successfully complete this initial training. Rooster & Rice franchisees must ensure they maintain a competent, conscientious, and trained staff sufficient to operate the business in line with the brand's standards. Furthermore, all individuals attending initial training, including operating principals, managers, and supervisory employees, are required to sign confidentiality, non-solicitation, and non-competition agreements.