Highlights of T.G.I. Friday’s Item 19 Financial Performance Representations (2012 FDD) – Part 1
- The franchise is for full service casual theme restaurants featuring a specialized menu and full bar service, operating as “T.G.I. Friday’s”. Friday’s offers prospective franchisees the opportunity to sign a Development Agreement for the right to develop one or more T.G.I. Friday’s Restaurants in a defined territory and a Franchise Agreement for the right to operate one T.G.I. Friday’s Restaurant.
- The total investment necessary to begin operation of a franchised T.G.I. Friday’s Restaurant ranges from $2,071,500 to $4,855,000. This is inclusive of the fees that must be paid to the franchisor or its affiliates, which include: (1) an earnest money deposit under a Letter of Understanding; (2) a Development Fee that ranges from $2,000 to $20,000 for each T.G.I. Friday’s Restaurant that you agree to develop; (3) an Initial Franchise Fee of $50,000; and (4) kitchen equipment, computer systems, furniture, and memorabilia fees of $368,696.
Statement of Historic Average Sales, Cost of Sales, and Gross Profit for Company-Operated T.G.I. Friday’s Restaurants – Average for 52 Weeks Ended December 26, 2011
- This statement does not include information for franchised Friday’s Restaurants.
- As of December 26, 2011, the average length of time that the company-operated Restaurants included in the statement have been open is 14.51 years.
- Typically, company-operated Friday’s Restaurants are located in areas with population densities in excess of 250,000 and in close proximity to regional shopping centers.
- The location of a Restaurant (whether company-operated or franchisee-operated) and the demographics of the geographic area can have a material impact on sales and expenses. Franchised Friday’s Restaurants operated in areas with population densities less than 250,000 and/or with less favorable demographic profiles are likely to experience lower sales than the average company-operated Friday’s Restaurant.
- All figures are rounded off to the nearest thousand dollars.