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FDD Talk Daily: Average Revenues of Franchisee-Owned Famous Dave’s Restaurants

Last updated on January 13, 2013 by Franchise Chatter Leave a Comment
in BBQ Franchise, Franchise Earnings

Highlights of Famous Dave’s Item 19 Financial Performance Representations (2012 FDD) – Part 1

  • Famous Dave’s of America, Inc. franchises authentic, down-home barbecue restaurants featuring genuine smoked barbecue. Famous Dave’s Restaurants operate under the name Famous Dave’s.
  • Famous Dave’s Restaurants serve combinations of hickory smoked spareribs, baby back ribs, beef brisket, herb-roasted chicken, barbecue sandwiches, char-grilled burgers, cornbread, potato salad, coleslaw, Wilbur beans, desserts, and other food and beverage items.
  • The total investment necessary to open a Famous Dave’s Restaurant ranges from $636,750 to $3,216,250, if you lease the premises for a Famous Dave’s Restaurant, and ranges from $836,750 to $4,239,750, if you purchase the land and building for a Famous Dave’s Restaurant.  This includes $100,750 to $165,750 that must be paid to the franchisor.
  • If you sign an Area Development Agreement, the Development Fee is $10,000 multiplied by the number of Famous Dave’s Restaurants you agree to develop.

Analysis of Average Revenues of Famous Dave’s Restaurants

  • The information in Item 19 was compiled from 52 company-owned Famous Dave’s Restaurants and 125 franchisee-operated Restaurants open for the entire fiscal year ended January 1, 2012, and 8 franchisee-operated and 2 company-owned Famous Dave’s Restaurants open for a portion of fiscal year ended January 1, 2012. This information includes company-owned and franchisee-operated Famous Dave’s Restaurants located in 37 states.
  • Famous Dave's Barbecue Photo by SeeMonterey


    Learn Which Franchises Can Make You Rich
    Famous Dave’s auditors have not performed any procedures on the financial information in this Item 19, and assume no responsibility for this information.
  • The company-owned Famous Dave’s Restaurants included in Item 19 are substantially similar to franchised Famous Dave’s Restaurants. However, the amount of revenues and expenses incurred will vary from restaurant to restaurant.
  • In particular, the revenues, expenses, and profitability of your Restaurant will be directly affected by factors which include:
  • the Restaurant’s geographic location;
  • competition in the market;
  • presence of other restaurants;
  • the quality of both management and service at the Restaurant;
  • contractual relationships with lessors and vendors;
  • the extent to which you finance the operation of your Restaurant;
  • your legal, accounting, and other professional fees;
  • federal, state, and local income taxes, gross profits taxes, or other taxes;
  • discretionary expenditures;
  • accounting methods used;
  • certain benefits and economies of scale which Famous Dave’s may derive as a result of operating Restaurants on a consolidated basis;
  • and the fees payable to Famous Dave’s by franchised Famous Dave’s Restaurants.
  • The following sections describe the average annual sales of franchisee-operated and company-owned Famous Dave’s Restaurants open and operating during the entire year included in this Item.
  • The reader should note that franchisee-operated and company-owned restaurants that were opened during the 2011 fiscal year (and therefore were not open for the entire year) are included for illustrative purposes only; however, annual sales information is not available for such restaurants.

Statement of Average Revenues for Franchisee-Owned Famous Dave’s Restaurants for the Fiscal Year Ended January 1, 2012



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