In this FDD Talk 2017 post, you’ll learn the following:
- Section I – Background information on the MOOYAH franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a MOOYAH 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 MOOYAH franchise, based on Items 5 and 6 of the company’s 2017 FDD
- Section IV – Presentation and analysis of MOOYAH’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
- 2016 average, median, high, and low gross sales for the 54 MOOYAH restaurants that (1) were owned and operated in the United States by third-party franchisees, (2) were in operation as of April 2, 2017, the end of MOOYAH’s 1st quarter of 2017, (3) had operated for the full 52 weeks prior to that date, and (4) were operated in standard locations and not in non-traditional venues
Section I – Background Information
13 Things You Need to Know About the MOOYAH Burgers, Fries & Shakes Franchise
Acquired by Affiliate of Balmoral Funds, LLC and Gala Capital Partners, LLC
1. In early May, MOOYAH Burgers, Fries & Shakes announced that it had been acquired by an affiliate of Balmoral Funds, LLC, a leading lower-middle-market private equity fund, and Gala Capital Partners, LLC, a private investment company with a focus on hospitality and food service franchises in the U.S.
2. Under the terms of the acquisition, the company will no longer be part of Reach Restaurant Group, but MOOYAH’s executive leadership team will remain in their roles. Michael Marby, President and Chief Operating Officer of MOOYAH, will be leading the transition to new ownership from the company’s co-founders Rich Hicks and Todd Istre.
3. Gala said that MOOYAH has high consumer appeal and the potential for faster growth and that the brand is ready to become a household name.
Taste to Try Campaign
4. MOOYAH features a different menu item every month in its Taste to Try campaign. Its spotlight item in August was The A-Wonderful, which features two four-ounce Certified Angus Beef patties, melted American cheese, Applewood smoked bacon, grilled onions, and A1 steak sauce on a freshly-baked potato bun. The A-Wonderful was featured throughout the month of August, but is available year-round.
5. MOOYAH launched its monthly Taste to Try campaign in 2016 and since its launch, customer checks with Taste to Try items average 29 percent higher than checks without. According to Natalie Anderson-Liu, Vice President of Marketing for MOOYAH Bugers, Fries & Shakes, “The Taste to Try campaign has been a hit since day one. It really resonates with our guests across the country—we’re featuring delicious recipes they have available to them using our premium, fresh ingredients.”
Celebrated 10th Birthday
6. MOOYAH celebrated its 10th birthday on July 10th by hosting a birthday party at participating locations across its system. The brand gave away several gifts to its customers and donated 10% of that day’s sales to No Kid Hungry, a non-profit organization dedicated to ending childhood hunger that MOOYAH partners with regularly.
7. MOOYAH also donated 10 cents for every photo that was posted to Facebook, Twitter, and Instagram using the hashtag #MOOYAH10.
8. The free stuff that MOOYAH gave away on its birthday included t-shirts to the first 100 customers at each participating U.S. location and a free cake pop with any shake purchase. Cake pops were available for $0.70 during the entire month of July with any shake purchase.
9. In addition to the free gifts and donations, several U.S. locations held a 10 patty cheeseburger eating contest at 5:10 pm local time.
10. MOOYAH Burgers, Fries & Shakes was founded in 2007 by Rich Hicks and Todd Istre in Plano, Texas and began franchising that same year. The burger chain has made a name for itself by serving burgers made from fresh, never frozen beef, hand cut fries, and real ice cream shakes. MOOYAH added shakes to its logo in 2009 due to the popularity of its real ice cream shakes.
11. Over the next few years, MOOYAH added new items to its menu including sweet potato fries and fresh-made white and wheat buns at each of its locations.
12. The brand opened its first international location in 2013 in Dubai. Today, there are over 100 MOOYAH locations in the U.S., Canada, Bahrain, Kuwait, Mexico, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
Entrepreneur’s Franchise 500
13. MOOYAH Burgers, Fries & Shakes has ranked on Entrepreneur’s annual Franchise 500 list three times in the last decade. The company’s highest rank was No. 314 in 2014, while its lowest rank was No. 357 in 2012. MOOYAH also appeared on Entrepreneur’s 2012 Top New Franchises list at No. 33.
Section II – Estimated Costs
- Please click here for detailed estimates of MOOYAH franchise costs, based on Item 7 of the company’s 2017 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on MOOYAH’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
- At the end of the 1st quarter of MOOYAH’s current fiscal year (April 2, 2017), there were a total of 71 Restaurants in operation in the United States, and 68 of them were owned and operated by third-party franchisees.
- Of the 68 franchised Restaurants, 4 operated in non-traditional locations, and 10 had not operated for the full 52-week period prior to that date.
- In the chart below, MOOYAH shows results for the remaining 54 Restaurants that: (1) were owned and operated in the United States by third-party franchisees, (2) were in operation as of April 2, 2017, the end of MOOYAH’s 1st quarter of 2017, (3) had operated for the full 52 weeks prior to that date, and (4) were operated in standard locations and not in non-traditional venues.
- For purposes of these calculations, Gross Sales is used as it is defined in the Disclosure Document and in the same manner as you will calculate your Gross Sales under the Franchise Agreement.
- However, the data is based on reports submitted by the franchisees or MOOYAH’s polling of the information directly from the franchisees’ point-of-sale systems. Neither MOOYAH nor its affiliates have undertaken an independent investigation to verify the Gross Sales reported by franchisees.
- To calculate the average Gross Sales, MOOYAH added the Gross Sales reported by all 54 franchised Restaurants for the 52-week period April 4, 2016 to April 2, 2017, then divided the sum by 54.
- MOOYAH also shows the range and the median for the data. The range is the space between the lowest and highest points in the data. The median is the middle data point; that is, the data point in the center of all data points.
- Since there is an even number of Restaurants in the data set, there is no middle data point, so the median is the average of the two middle data points.
- The following chart shows the average Gross Sales and related information for the 52-week period that ended on the last day of the 1st quarter of MOOYAH’s current fiscal year (from April 4, 2016 to April 2, 2017):