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Earnings Claims of Top Franchises Revealed

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10 Things Every Prospective Franchisee Needs to Know About Shane’s Rib Shack

by Franchise Chatter on August 1, 2011

in Franchise Reviews, Restaurant Franchise



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10 Things Every Prospective Franchisee Needs to Know About Shane’s Rib Shack

1.  Shane’s Rib Shack was founded in 2002 by husband and wife Shane and Stacey Thompson in rural McDonough, Georgia.  Shane left corporate America to start the new restaurant with his grandfather’s secret BBQ sauce. Since starting their franchise program in 2004, Shane’s Rib Shack has emerged as the country’s leading fast-casual BBQ concept, with more than 70 restaurants in 14 states, and with plans to open 12 to 15 new locations in the next year.  In 2009, the company was acquired by Petrus brands.

Shane's Rib Shack Franchise Photo by Dave Reasons2.  Shane’s offers high-quality, Southern inspired BBQ in a comfortable, family-friendly environment. Shane’s proprietary smoking process and secret BBQ sauce allow the franchise to be portable, highly scalable, and adaptable to various real estate types.

Their menu includes bbq pork, chicken, and ribs, sandwiches, salads, chicken tenders, and wings. Sides include coleslaw, baked beans, french fries, fried okra, Brunswick stew, and collard greens.

The kids’ menu at Shane’s consists of chicken tenders, mac & cheese, a grilled cheese sandwich, and a kids’ burger, along with a choice of fries or a side salad and a drink. These options range from $3.99 to $4.59. Kids are also welcome to order small portions of Shane’s signature items from the regular menu.



An average lunch ticket at Shane’s is $8, while dinner is about $12.

Shane’s also offers complete catering services — from party platters, to box lunches, to full-catered meals for any occasion.

3.  Real estate has played a huge part in Shane’s Rib Shack’s success, so they’ve established a set of minimum standards and site selection guidelines. They have experienced commercial real estate brokers who can assist new franchisees in the site selection process, and a Shane’s representative must visit and evaluate any site selected to ensure that it meets franchise standards.

4.  Shane’s has created an interior design plan that can be tailored to fit any approved location. Everything needed for the build-out, including furniture, fixtures, and equipment, are packaged and shipped to the location as part of the build-out process.  Shane’s can even assist in selecting a General Contractor.

5.  While Shane’s Rib Shack does not offer direct financing, they can recommend SBA and lending programs, as well as leasing options with Shane's Rib Shack Photo by Dave Reasonsthird-party sources, to qualified franchisees. Shane’s continues to build relationships with lenders to help cut down loan processing times. The common lending terms and conditions are:

  • Equity requirements range from 10% to 30% of project cost; $100k to $150k of liquid capital
  • Good personal credit score (650+)
  • Personal guarantee usually required
  • SBA looks for up to 100% collateral (ex. home equity, marketable securities, land)
  • Loan terms are generally up to 10 years
  • Banks look for management and/or restaurant experience
  • Secondary source of income important
  • Closing costs range from 2-4% of loan amount

6.  Shane’s Rib Shack uses National Procurement Resources — industry experts at managing distribution and purchasing for franchise systems. National Procurement Resources constantly updates the network on all aspects of purchasing and distribution, including contracts, rebates, etc.

7.  New franchisees receive at least 7 days of on-site training at the company’s flagship location in Georgia, plus an additional three weeks learning the ins and out of running the restaurant, including all aspects of business operations.

An opening team from the Shack will come to the franchisee’s location approximately 3 – 5 days prior to opening.  They will help ensure that all furniture and fixtures are in their appropriate place and that the equipment is working properly. The Shack Crew will also conduct an opening training course for the initial staff and teach the day-to-day operational policies and procedures.

Shane's Rib Shack Franchise Photo by mally.miles8.  Individual and multi-unit franchise opportunities are available in Florida, Georgia, Mississippi, Arkansas, Louisiana, Tennessee, South Carolina, North Carolina, Kentucky, Virginia, Ohio, West Virginia, Pennsylvania, New York, Massachusetts, Delaware, New Jersey, Connecticut, and Arizona.

9.  The initial franchise fee is $30,000, the ongoing monthly royalty is 5% of gross sales, and the monthly contribution to national advertising is 2% of gross sales.



10.  Part of the company’s vision is keeping it local and impacting communities. The Education Support Program started by Shane and Stacey encourages franchisees to support local school programs by making contributions, helping groups to raise money, providing a place for gatherings, and giving incentives — like free kids’ meal cards — for good grades.



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