In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the Beef Jerky Outlet franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Beef Jerky Outlet franchise, based on Item 7 of the company’s 2018 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Beef Jerky Outlet franchise, based on Items 5 and 6 of the company’s 2018 FDD
- Section IV – Number of franchised and company-owned Beef Jerky Outlet stores at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD
- Section V – Presentation and analysis of Beef Jerky Outlet’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:
- 2015, 2016, and 2017 average gross product sales, gross product cost, gross margin dollars, and gross margin percentage for the Beef Jerky Outlet stores owned and operated by the franchisor’s affiliates for at least 1 year
- 2015, 2016, and 2017 average and median gross product sales for the Beef Jerky Outlet stores owned and operated by franchisees for at least 1 year
- 2015, 2016, and 2017 average and median gross product sales for the top third, middle third, and bottom third of the Beef Jerky Outlet stores owned and operated by the franchisor’s affiliates for at least 1 year
- 2015, 2016, and 2017 average and median gross product sales for the top third, middle third, and bottom third of the Beef Jerky Outlet stores owned and operated by franchisees for at least 1 year
Section I – Background Information
13 Things You Need to Know About the Beef Jerky Outlet Franchise
Opens 100th Store
1. Beef Jerky Outlet opened its 100th store in July 2017 in Kitty Hawk, North Carolina. To celebrate the milestone, Beef Jerky Outlet gave the first 100 customers a free bag of premium jerky. Customers also enjoyed store-wide discounts and a chance to win a grand prize giveaway – two lucky winners received free jerky for an entire year.
2. Kathy Raines, chief operating officer of Beef Jerky Outlet, said, “We are thrilled to be opening our 100th store. We work hard every day to provide the best possible experience for our customers, because they are what drive our company and our growth. To satiate our hungry customers, we are constantly working to produce the tastiest jerky out there. We love coming up with new flavors and varieties, and we hope to see our customer base continue to grow as we expand our jerky variety even more.”
Beef Bouquets for Valentine’s Day
3. In the spirit of fun, Beef Jerky Outlet likes to introduce new items that are unique and creative. The brand’s most recent quirky offering was its Beef Bouquet, which debuted on January 22 for $99.99 at participating locations, just in time for Valentine’s Day. Each bouquet was presented in a glass vase and featured Beef Jerky Outlet’s original beef sticks topped with classic jerky shaped as hearts and longhorns. The Beef Bouquet was also available for delivery and was sent in a sturdy wooden box that included a Beef Jerky Outlet drink holder.
4. Paul Lyons, president of Beef Jerky Outlet, said, “We are thrilled to offer our customers a fun, new option for a Valentine’s Day present. Our tasty beef bouquet is a unique way to show the meat-lover in your life that you care. Not to mention, jerky is a much healthier option than many of the traditional Valentine’s Day treats.”
Celebrated National Jerky Day with Launch of New Flavor
5. On June 12, 2017, Beef Jerky Outlet hosted its annual National Jerky Day celebration with the Bacon Mania event and the launch of its brand new flavor, Applewood Smoked Bacon Jerky. Bacon Mania was a week-long event that started on June 12 and ran through Father’s Day on June 18.
6. During the event, customers were able to enjoy free chocolate-covered bacon jerky samples, served fresh from a real chocolate fondue pot. Each store had a limited number of Bacon Mania t-shirts to give away. Beef Jerky Outlet also handed out recipe cards with jerky-centric recipes like “Man Candy” and “Bacon Jerky Nachos.” Four ounce bags of bacon jerky were available at a discounted rate and the Bacon Mania mascot, Hamlet the Pig, made appearances at select stores.
7. The Bacon Mania event ended with a grand prize shopping spree for one lucky winner at each Beef Jerky Outlet location. The winner got the chance to grab as many 4-ounce bags of bacon jerky as they could in 12 seconds while wearing a full-body Hamlet the Pig suit.
8. Kathy Raines, chief operating officer of Beef Jerky Outlet, said, “We are thrilled to be celebrating National Jerky Day again this year. Every year, we have so much fun with different events; this year, we have really stepped up the fun with Bacon Mania. It’s the perfect way to thank our customers for everything they’ve done for us and introduce our new Applewood Smoked Bacon Jerky.”
Makes Donation to J.J. Watt Hurricane Relief Fund
9. On September 2, 2017, Beef Jerky Outlet hosted a national day of giving, where a portion of sales from all 102 locations were donated to the Hurricane Relief Fund of J.J. Watt, an NFL player for the Houston Texans. One of the brand’s franchise owners from Corpus Christi, Texas was so touched by Watt’s pleas on social media, he suggested to the corporate office that Beef Jerky Outlet’s day of giving support Watt’s cause. As a result, a total of $12,998 was raised and donated on behalf of the Texas owners that were impacted by Hurricane Harvey.
10. Franchisee Clint Hall’s three Beef Jerky Outlet locations in the Houston area were closed for days after the storm. Hall, a Houston Texans fan, was thrilled to hear about the day of giving initiative and wanted to help out as much as he could. He said, “So many people in our area were impacted, we just wanted to find a way to give back. Our Texas owners along with our corporate team really stepped up and with the help of our owners around the country, we are happy to be a part of what J.J. is doing for this cause.”
11. Beef Jerky Outlet was founded in 2010 by Paul Lyons and Scott Parker in Destin, Florida. Lyons and Parker recognized that Americans were suddenly very interested in beef jerky and the two wanted to sell high quality, small-batch beef jerky that came in different varieties and flavors. They also established the brand’s biggest driver early on, a nearly limitless amount of free samples – customers are welcome to try as many different types of jerky they want, within reason.
12. Lyons and Parker also decided to sell the best popcorn, cheeses, peanut butters, and other snacks to fill up the rest of the store space and evoke a fun atmosphere. Today, across the United States, there are over 100 Beef Jerky Outlets that sell more than 100 varieties of premium jerky, including exotic meats like kangaroo, alligator, venison, and elk, as well as specialty flavors such as Moonshine and Cajun.
Entrepreneur’s Franchise 500
13. Beef Jerky Outlet ranked No. 99 on Entrepreneur’s 2018 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Beef Jerky Outlet franchise costs, based on Item 7 of the company’s 2018 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Beef Jerky Outlet’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2018 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 17
- Outlets at the End of the Year: 35
- Net Change: +18
- Outlets at the Start of the Year: 35
- Outlets at the End of the Year: 70
- Net Change: +35
- Outlets at the Start of the Year: 70
- Outlets at the End of the Year: 97
- Net Change: +27
- Outlets at the Start of the Year: 8
- Outlets at the End of the Year: 9
- Net Change: +1
- Outlets at the Start of the Year: 9
- Outlets at the End of the Year: 7
- Net Change: -2
- Outlets at the Start of the Year: 7
- Outlets at the End of the Year: 7
- Net Change: 0
Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis
- The franchise is for the operation of a business under the “Beef Jerky Outlet” name which is a specialty retail food store that features a variety of jerky products, sausages and smoked meats, sauces, rubs, seasonings, marinades, jams, butters, jellies, peanuts, candies, cheeses, and other similar foods.
- In Part 1, Beef Jerky Outlet provides the average gross product sales, average gross product cost, average gross margin dollars, and average gross margin percentage achieved by 8 non-franchised Stores owned and operated by Beef Jerky Outlet’s affiliates for at least 1 year.
- In Part 2, Beef Jerky Outlet has listed only the average gross product sales achieved by 70 Franchised Stores owned and operated by its franchisees for at least 1 year.
- In Part 3, Beef Jerky Outlet provides additional breakdown detail for the Affiliated Stores in the form of 3 tiers. This provides a high, mid, and low perspective on the average gross product sales results of the Affiliated Stores. Other than with respect to the length of time that an Affiliated Store has been in operation, there are no material differences in the operation of an Affiliated Store as compared to a Franchised Store.
- In Part 4, Beef Jerky Outlet provides additional breakdown detail for the Franchised Stores operated by its franchisees for at least 1 year. This provides a high, mid, and low perspective on the average gross product sales results of the Franchised Stores.
- These outlets have earned these amounts. Your individual results may differ. There is no assurance that you’ll earn as much.
- The figures used in this statement are average gross sales, average gross cost, average gross profit, and average gross margin only.
- Beef Jerky Outlet does not supply or provide cost information; however, the cost of goods to Affiliated Stores and the cost of goods to Franchised Stores is the same. Beef Jerky Outlet’s franchisees will not incur a greater cost of goods than its affiliates.
- The Affiliated Stores do not pay royalties, but do pay advertising fees. There are no other unique costs to franchisees that are not borne by Affiliated Stores.
- Net income will vary from Store to Store depending upon factors such as rental or real estate costs, labor costs, and other costs relating to the operation of the Store.
- The sales revenues shown in this chart reflect the historic experience of Beef Jerky Outlet’s Affiliated Stores and Franchised Stores; they should not be considered as the actual or potential sales that you will realize. Results for a new franchisee may differ from the results stated in this financial performance representation.
- Beef Jerky Outlet offered substantially the same services to the Stores described in this Statement. These Stores offered substantially the same products and services to the public as you will. The Stores report gross sales information to Beef Jerky Outlet based upon a uniform reporting system.
- The information presented below has not been audited.
- You should also be aware that the financial performance of any particular Store might be affected by a number of factors that may vary due to the individual characteristics of the site. These factors include, but are not limited to:
- competition from other businesses;
- location of your site;
- your experience;
- your ability to operate the business;
- the quality and effectiveness of your managerial skills;
- your decisions with respect to location, additional advertising programs, personnel, and cost controls;
- geographic and socioeconomic conditions in your locality;
- business cycles; and
- the performance of the local, national, and world economy.
Part 1 – 2015, 2016, and 2017 Average Results of Affiliated Stores