FDD Talk 2017: What You Need to Know About the Tilted Kilt Franchise Opportunity (Financial Performance Analysis, Costs and Fees)

In this FDD Talk 2017 post, you’ll learn the following:

• Section I – Background information on the Tilted Kilt franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Tilted Kilt franchise, based on Item 7 of the company’s 2017 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Tilted Kilt franchise, based on Items 5 and 6 of the company’s 2017 FDD

• Section IV – Presentation and analysis of Tilted Kilt’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:

• 2016 average, median, high, and low weekly unit volume for the top third tier, mid third tier, and lower third tier of the 82 franchisee-owned Tilted Kilt restaurants open in the United States as of December 31, 2016

• 2016 average weekly unit volume for the 2 affiliate-owned Tilted Kilt restaurants open in the United States as of December 31, 2016

Section I – Background Information

12 Things You Need to Know About the Tilted Kilt Franchise

New Leadership

1.  In July 2016, Tilted Kilt promoted two veteran executives, naming Eddie Goitia as Chief Executive Officer and Logan Reves as Chief Operating Officer. Goitia was previously the company’s Chief Financial Officer, while Reves served as Vice President of Operations.

2.  As CEO, Goitia is responsible for the day-to-day operations of the company, while Reves oversees the marketing, operations, and training departments, as well as strategic menu development for the brand.

New Restaurant Prototype

3.  In late July 2016, Tilted Kilt unveiled a modernized restaurant prototype. The new pub features the layout for all future Tilted Kilt restaurants and was designed to increase the fun and entertaining elements that guests have come to expect from Tilted Kilt.

4.  The restaurant prototype was built in front of Tilted Kilt’s company headquarters and is able to entertain 225 guests inside and another 90 on a semi-covered outdoor patio featuring new pit-style soft seating surrounding fire and water structures. There is also a new gaming area for customers to enjoy, a venue for live entertainment, and a dozen 70-to-80-inch flat screen TVs for watching various sports programs.

5.  The new gaming centers will have pool tables, shuffle boards, darts, and bags. In addition to more TVs, the new pubs will have a TKTV “Crew Cam” which allows customers to watch while their food is being prepared in the kitchen.

6.  The biggest change to the restaurant’s atmosphere is the brighter appearance. There is lighter colored trim and window shades to allow for more light.

Partnered with Coaches vs. Cancer

7.  In late February, Tilted Kilt announced that it had partnered with the Coaches vs. Cancer program in an effort to encourage Tilted Kilt customers and fans to help the fight to end cancer. From February 20 to April 3, customers were invited to “Take a Shot Against Cancer” by adding onto their checks a $1, $3, or $5 donation.

8.  Guests who donated received a basketball paper cut-out to autograph and display on their local Tilted Kilt’s walls. All proceeds benefited the Coaches vs. Cancer program.

Company History

9.  The first Tilted Kilt Pub & Eatery was opened in the Las Vegas Rio Hotel and Casino in 2003 by restaurateur Mark DiMartino and business partners and co-founders Shannon Reilly and John Reynaud. The restaurant’s concept is a “contemporary, Celtic-themed sports bar, staffed with beautiful servers.”

10.  Although Tilted Kilt originally did not have franchising in mind, the restaurant caught the eye of Ron Lynch, an experienced and savvy restaurant and franchise developer. Franchising officially began in 2006 and the company relocated its headquarters from Las Vegas to Tempe, Arizona, where it is still based today.

11.  Tilted Kilt’s growth has remained moderate. There are currently around 95 locations in the U.S. and Canada.

Entrepreneur’s Franchise 500

12. Tilted Kilt has been franchising for 11 years and has appeared on Entrepreneur’s annual Franchise 500 list twice. Tilted Kilt debuted on the list in 2015 at No. 411 and ranked again in 2016 at No. 325.

Section II – Estimated Costs

• Please click here for detailed estimates of Tilted Kilt franchise costs, based on Item 7 of the company’s 2017 FDD (updated).

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Tilted Kilt’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.

Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis