Roy Rogers Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$755,250 - $1,580,950
Franchise Fee
$15,000
Min Cash Required
$50,000
Total US Locations
40
Business Summary
Roy Rogers Restaurants are quick-service establishments that specialize in serving roast beef sandwiches, on-the-bone fried chicken, and a variety of other hamburgers and sandwiches. They also offer side orders, desserts, breakfast items, soft drinks, and special limited-time menus for customers dining on-premises, using the drive-thru, or taking food out. A unique feature of Roy Rogers Restaurants is a "Fixin's Bar" where customers can get condiments for their meals.
Corporate History
Roy Rogers Restaurants began as a concept in 1968. The system was originally owned and franchised by a predecessor company of Marriott International, Inc. In April 1990, Hardee's Food Systems, Inc. acquired the system from a Marriott affiliate, becoming its franchisor. In 1997, the system's assets were assigned to MRO Mid-Atlantic Corp. Roy Rogers Franchise Company, LLC was formed on June 6, 2002, and subsequently acquired all rights and assets related to the Roy Rogers system from MRO on July 12, 2002. Roy Rogers Franchise Company, LLC began offering Roy Rogers franchises in September 2003.
Financial Overview
Investment Range
$755,250 - $1,580,950
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$30,000
Minimum Cash Required
$50,000
Royalty %
5%
Marketing %
1.5%
Equipment Costs (Low)
$230,000
Equipment Costs (High)
$343,700
Working Capital
$60,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Roy Rogers Franchise Company received an unqualified audit opinion for its consolidated financial statements for the years ended December 26, 2023, and December 27, 2022, indicating that the statements are presented fairly in all material respects. The company maintains a national marketing fund and has a note payable with PNC Bank maturing in 2027. It also has related party transactions for management fees and wages and operates a gift card program. Management believes that any legal proceedings or claims will not materially affect the company's financial position, operations, or liquidity.
Financing Details
Roy Rogers Franchise Company does not offer any direct or indirect financing options to its franchisees. Additionally, Roy Rogers Franchise Company will not guarantee any franchisee's notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
40
Franchised Units
16
Corporate Units
24
Avg Square Footage
3,500
Franchising Since
2003
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Roy Rogers Franchise Company has no litigation to report in Item 3 of its FDD, indicating a clear legal record as of the FDD issuance date.
Bankruptcy History
Roy Rogers Franchise Company has no bankruptcy history to report in Item 4 of its FDD, indicating that neither the franchisor nor its key personnel have been involved in any bankruptcy proceedings.
Agreement Terms
Initial Term
20 years
Renewal Term
20 years
Renewal Conditions
To renew, Roy Rogers franchisees must provide written notice between 6 and 12 months before the initial term ends. They need to demonstrate their right to possess the restaurant premises for the renewal term or get approval for a new location. Franchisees must not be in default of their agreements, satisfy all monetary obligations, and have substantially complied with operating standards. They are required to remodel the restaurant to meet Roy Rogers' then-current standards, sign a general release of claims against Roy Rogers, and execute a new franchise agreement which may have different terms, including higher royalty fees and marketing contributions. Additionally, franchisees and their personnel must meet current qualification and training requirements and pay a renewal fee equal to the then-current initial franchise fee.
Training & Support Program
Franchisor Assistance
Roy Rogers Franchise Company provides extensive support to its franchisees. Before opening, Roy Rogers provides an initial training program for up to three individuals, including the Highly Trained Personnel, for up to ten weeks. They also offer site location criteria, guidance for site selection, prototype architectural plans, and inspect and approve the restaurant for opening. A representative may be present for the initial opening. Franchisees receive access to the confidential operating manual and assistance with developing the grand opening marketing program. On an ongoing basis, Roy Rogers makes additional training programs available, provides periodic assistance in marketing, management, and operations, and administers the system-wide Marketing Fund.
Initial Training Hours
368
Training Location
Frederick, Maryland or Hagerstown, Maryland
Ongoing Support
Roy Rogers Franchise Company provides ongoing support by making additional training programs available as deemed appropriate. It also offers periodic assistance in the marketing, management, and operation of the restaurant, and administers the system-wide Marketing Fund.
Franchise Requirements
Ideal Candidate Profile
Roy Rogers Franchise Company seeks qualified individuals or entities to operate its quick-service restaurants. The ideal candidate should be an individual (or have a Principal Owner) with at least a 10% ownership interest in the franchisee entity, capable of actively managing the restaurant full-time or supervising operations effectively. Candidates, including their Highly Trained Personnel, must meet Roy Rogers' standards and specifications, successfully complete initial training programs, and possess a good business reputation, strong business and interpersonal skills, and management acumen. They should not be competitors of Roy Rogers and must be able to train others according to the system's standards.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Full-Time
Territory Type
Limited
Territory Size Requirements
Roy Rogers Franchise Company's territory size is determined through individual negotiation with the franchisee. It is typically described by street boundaries or political subdivisions, or by designating specific locations, intersections, or market areas. The size and location are based on factors such as population, traffic patterns, trade areas, proximity to business generators (like schools and hospitals), the franchisee's ability to develop the territory, and other economic factors. For Area Development Agreements, the size of the development area is also mutually agreed upon, considering the franchisee's wishes, economic and demographic capacity, competition in the area, and the franchisee's experience and financial capacity.
Staffing Notes
Roy Rogers Restaurants require that either the franchisee, a Principal Owner, or an approved Highly Trained Personnel member dedicates full-time effort to the management and operation of the restaurant. In addition, each location must have three to four managers, including a General Manager, responsible for daily operations. At least one manager must be on duty at all times. Franchisees must maintain a competent and trained staff sufficient to serve customers promptly, ensuring good customer relations and adherence to a prescribed dress code. If any Highly Trained Personnel leave their position, a qualified replacement must be enrolled in the initial training program within 30 days.