Smalls Sliders logo

Smalls Sliders Franchise

Audited Financials
Food and BeverageEst. 2021Atlanta, GA
www.smallssliders.com

Risk Score

Pending analysis

Investment Range

$1,297,825 - $2,053,734

Franchise Fee

$30,000

Total US Locations

21

Business Summary

Smalls Sliders Restaurants offer a limited menu of made-to-order sliders, fries, sauces, milkshakes, and beverages. These establishments are designed as dual-lane modular drive-thru restaurants, manufactured and installed on site. Smalls Sliders provides a unique format and presentation in the quick-service restaurant segment.

Corporate History

Smalls Sliders Franchising LLC was originally formed in Louisiana on June 22, 2021, and later converted to a Georgia limited liability company on December 19, 2023. The company operates under the legal name "Smalls Sliders" and began offering Smalls Sliders Restaurant franchises in July 2021. The franchisor has not previously operated Smalls Sliders Restaurants or engaged in any other line of business.

Financial Overview

Investment Range

$1,297,825 - $2,053,734

Franchise Fee (Low)

$30,000

Franchise Fee (High)

$35,000

Royalty %

6%

Marketing %

3%

Equipment Costs (Low)

$387,862

Equipment Costs (High)

$436,088

Working Capital

$27,500

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Smalls Sliders Franchising LLC's financial condition, as shown in its financial statements, raises questions about its ability to provide services and support to franchisees. The future success of Smalls Sliders is dependent on successful franchise development and its member's ability to cover any working capital shortages until the company achieves consistent profitability.

Financing Details

Smalls Sliders Franchising LLC does not offer any direct or indirect financing options to its franchisees. Additionally, the company does not guarantee any notes, leases, or other financial obligations for franchisees.

Performance Metrics

Total US Locations

21

Franchised Units

19

Corporate Units

2

Avg Square Footage

800

Franchising Since

2021

Agreement Terms

Initial Term

15 years

Renewal Term

5 years

Renewal Conditions

To renew their franchise agreement, Smalls Sliders franchisees must be in full compliance with the current agreement, provide timely notice of their intent to renew, and pay a renewal fee. They must either maintain possession of their current location or find an acceptable replacement. Franchisees are also required to remodel their restaurant to meet the franchisor's then-current standards, regardless of the cost, and sign the franchisor's current Franchise Agreement and a general release. The new agreement may have significantly different terms, including a reduced Protected Territory and increased fees.

Training & Support Program

Franchisor Assistance

Smalls Sliders Franchising LLC provides various types of assistance to its franchisees. Before opening, the company helps with designating a site selection area, reviewing and accepting proposed locations, approving third-party leases, and providing mandatory specifications for restaurant design and layout. They also identify approved suppliers for operating assets and menu items, provide access to the Brand Standards Manual, and advise on grand opening advertising, including administering the Grand Opening Campaign Fee. Initial training is provided for the franchisee (or Operating Partner) and two managers. Ongoing assistance includes operational advice based on reports and inspections, guidance on System Standards (which may require remodeling), and support for purchasing, advertising, and administrative procedures. Franchisees have continuous access to the Brand Standards Manual and may receive additional guidance or training upon request or if determined necessary.

Initial Training Hours

166

Training Location

Corporate Support Center in Atlanta, GA, virtually, and existing Smalls Sliders Restaurants

Ongoing Support

Smalls Sliders Franchising LLC provides ongoing support to its franchisees through various methods. This includes advising on restaurant operations based on reports or inspections, guiding franchisees on System Standards, purchasing, advertising, and administrative procedures. Franchisees have continuous access to the online Brand Standards Manual, which may be modified periodically. The franchisor may also establish pricing requirements and conducts inspections of restaurants to ensure compliance. Franchisees (or their Operating Partner) and other experienced employees must attend mandatory training courses, both online and in-person, as well as an annual national meeting. If an audit reveals non-compliance with System Standards, franchisees may be required to undertake additional training at their restaurant, for which they will pay applicable charges.

Franchise Requirements

Industry Experience Required

No

Management Experience Required

Yes

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Retail

Owner Participation

Supervisory

Territory Type

Protected

Staff Count

37

Territory Size Requirements

Smalls Sliders designates a "Protected Territory" around the accepted restaurant premises, typically about three-quarters of a mile in radius. However, the actual size may be smaller, depending on factors such as population density, traffic patterns, and natural geographic features like bodies of water or interstate highways that influence customer travel.

Staffing Notes

Smalls Sliders Restaurants require a staff ranging from 21 to 53 employees, including a General Manager and squad members. The franchisee, or an appointed Operating Partner, must oversee and supervise the restaurant's operations. A fully-trained, full-time General Manager, who may be the franchisee or Operating Partner, must be responsible for direct supervision of the restaurant. Franchisees are responsible for all employment decisions, including hiring, training, and discipline, and must ensure sufficient personnel are on staff to operate according to brand standards.