FAQs – Smoke the Burger Joint
Q: What is the total investment necessary to begin operations of a traditional Smoke franchise?
A: The total costs vary by location but our range is approximately $232,800 – $654,500 for a typical 2,500 square foot location.
Q: What kind of financial worth are you looking for in a candidate?
A: Each candidate should have non-leveraged personal resources of at least $150,000 and a net worth of $500,000.
Q: How much is the Franchise Fee and do you ever negotiate on the franchise fee?
A: The franchise fee for the first restaurant is $30,000. If a candidate is awarded additional stores the franchise fee is reduced to $25,000 for each additional store under the same ownership.
Q: Does Smoke offer financing?
A: No, we do not offer financing at this time.
Q: What is the average sales volume of a Smoke restaurant?
A: Due to Federal Trade Commission restrictions and various state regulations, we are not permitted to provide you with specific sales and profit projections. During the applications process you will receive a Franchise Disclosure Document that contains a list of current franchisees. You are welcome to call them to discuss their experiences.
Q: How much is the royalty fee and how is it collected?
A: The royalty fee is 5% of gross sales and is automatically withdrawn on a weekly basis.
Q: What is the Marketing/Production fund?
A: The Marketing/Production Fund is .5% of gross sales (half a percent) and is also collected on a weekly basis. The fund pays for the development of advertising, marketing materials and creative work.
Q: Is there an advertising/marketing fund?
A: Currently, there is not a national advertising fund although the agreement allows for an advertising fund to be established of up to 2% of gross sales. Today, the franchisee is required to spend a minimum of 2% of gross sales on local store advertising. This expenditure is not paid to the franchisor but an accounting of the expenditure is submitted quarterly.
Q: What is the term for the franchise?
A: The initial term is for 10 years, with a 10 year option.
Q: Is there a renewal fee after the initial term?
A: Yes, after the initial term, the renewal fee is $15,000 or 50% of the then current franchise fee, whichever is greater.
Q: How long does it take to open my restaurant?
A: There are a lot of factors that determine the length of time to open, such as site selection, lease negotiations, construction, etc. You have eight months from the signing of the franchise agreement to open the restaurant.
Q: What types training is offered?
A: Each franchisee starts their training by spending a minimum of four weeks working in an approved Smoke training site. Various members of our training team will spend an additional two weeks in the franchisee’s restaurant at the time of opening.
Q: I am interested in learning more about Smoke. What is my next step?
A: If you'd like to start a conversation about franchising, click here to contact us or email us at firstname.lastname@example.org
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