In this FDD Talk 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 2018 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 2018 FDD
- Section IV – Number of franchised and company-owned MOOYAH outlets 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 MOOYAH’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:
- 2017 average, median, high, and low gross sales for the top 10%, bottom 10%, and all 58 MOOYAH restaurants that (1) were owned and operated in the United States by third-party franchisees, (2) were in operation for all of calendar year 2017, and (3) were operated in standard locations and not in non-traditional venues
Section I – Background Information
23 Things You Need to Know About the MOOYAH Burgers, Fries & Shakes Franchise
Launches First National TV Ads
1. At the end of January 2018, MOOYAH Burgers, Fries & Shakes launched its first national TV advertising campaign. MOOYAH created three new spots that were released across a variety of cable stations around the country.
2. Natalie Anderson-Liu, vice president of brand for MOOYAH, said, “These spots truly capture the quality and value we provide our Guests every day at MOOYAH and now we get to tell that story to a national audience. Our Franchise Partners are excited to see broadcast marketing for the brand and feedback has been overwhelmingly positive so far. We are already getting solid anecdotal feedback within our restaurants from Guests who saw the commercials. However, we are looking forward to examining the analytical data in order to observe the measurable impact of the campaign and continue to guide our marketing decisions with solid performance information.”
3. The 30-second TV spots launched on January 25 and ran over the course of 16 weeks. The ads incorporated the brand’s “Seriously Fun” messaging, with a nod to the company’s never-frozen Certified Angus Beef, non-GMO buns baked in-house, hand-cut fries from No. 1 Idaho potatoes, 100% real ice cream shakes, and variety of fresh veggies.
4. The company’s value proposition is highlighted as well. While prices vary depending on location, the better burgers start at just $4.99.
5. In addition to the nationally-televised spots, the ads were also utilized for digital marketing including pre-roll, YouTube, Google, Facebook, and Instagram.
6. Michael Marby, president and COO of MOOYAH, said, “As a brand, MOOYAH has grown to the point where national TV ads make sense and fit our strategy to find enhanced ways to support our Franchise Partners across the country. These ads will be focused on driving more repeat Guests, and exposing the MOOYAH brand to more first-time Guests. As we continue to sign deals to open additional locations, we are happy to offer new and expanding Franchise Partners this tool as part of our overall marketing support package.”
Signs Multi-Unit Development Deals for Southern Virginia and Orlando
7. In early April 2018, MOOYAH Burgers, Fries & Shakes said that it was entering the second quarter of the year ready to continue its expansion across the country. At the time, MOOYAH had just signed multi-unit franchise development deals in both Southern Virginia and Orlando, Florida.
8. MOOYAH signed a three-unit deal with Bakfield, LLC, a group of three entrepreneurs and friends based in Lake Mary, Florida, and a three-unit deal with Keval Shah and Sanjay Patel, community-focused owners of multiple businesses in the area, including a Cold Stone Creamery in Norfolk, Virginia.
9. Jordan Duran, director of franchise sales for MOOYAH Burgers, Fries & Shakes, said, “Virginia and Florida are key development markets where we believe the MOOYAH brand can grow and thrive, so we are excited about the opportunity to bring our family-friendly and service-oriented approach to these new markets within those states. Both the Bakfield group and Keval and Sanjay embody the type of franchisees we have found success with in that they understand the value of a quality product and realize that unmatched hospitality plays a vital role in building a successful restaurant business. We look forward to providing them support through the process of opening their first MOOYAH locations.”
10. Bakfield, LLC is comprised of Raj Bakshi, Keith Fields, and Kevin Hipes. The three friends and business partners opened their first location next to a successful Chick-fil-A location in the food court of the renovated Oviedo Mall. New ownership of the Oviedo Mall is investing in additional renovations, including new retail, restaurant, educational, and entertainment venues. After Oviedo, the group plans to explore real estate options for their next two MOOYAH restaurant locations throughout the greater Orlando area. The Oviedo Mall opening is the second for MOOYAH in the state of Florida.
11. Hipes said, “We were all interested in finding a franchise concept that fits our interests, backgrounds and could benefit this community we’ve all lived in for most of our lives. We found MOOYAH while searching the internet for opportunities and were immediately drawn to the brand. We tried the product and really liked the quality. I have a lot of friends in Texas who were familiar with MOOYAH and the Orlando area is a very similar market to Dallas where the brand is based. We saw this as an opportunity to get in with the brand early.”
12. In Virginia, new franchisees Keval Shah and Sanjay Patel are actively looking at real estate options across Southern Virginia for their first of three locations, focusing on the Virginia Beach, Suffolk, Chesapeake, and Norfolk areas. The duo was introduced to the concept by an existing MOOYAH franchisee in the area.
13. According to Shah, “I’d go to the MOOYAH in Hampton for lunch and they have a really good burger but there are also several vegetarians and health nuts in my family so it was nice that MOOYAH had various options for them too. The product is just so awesome that we think it will really do well in the southern part of the state. We met with the corporate team, enjoyed our conversation in which they exposed us to what MOOYAH was all about, and we are excited to join the system.”
Brings Back Fan Favorite Oktoberfest Burger
14. In 2017, as part of its popular Taste to Try program, MOOYAH Burgers, Fries & Shakes released The Oktoberfest, a seasonal burger featuring Swiss cheese, grilled onions, kraut, mustard, and Applewood smoked bacon on a baked in-house potato bun.
15. The limited-time burger became one of the top-selling Taste to Try offerings, which is why MOOYAH is bringing it back this year from September 3 to November 4 with a twist. In addition to being able to enjoy this fan favorite burger, customers will also be able to try the recipe on MOOYAH’s all-beef hot dogs.
16. Natalie Anderson-Liu, vice president of brand for MOOYAH Burgers, Fries & Shakes, said, “The Oktoberfest is full of seasonal flavor and was one of the top-selling additions to our popular Taste to Try program in 2017 – so much so that we decided to give our Guests another taste this year as both a burger and a hot dog creation. The Oktoberfest is great for Guests who want to come in and share a fall flavor with their family and friends as school is getting back into full swing, and it’s also perfect to bring to a football tailgate or pick up to enjoy at home.”
17. The Taste to Try program was developed in 2016 to show customers the nearly endless amount of burger combinations that are possible to create with MOOYAH’s innovative toppings and sauces. In 2018, MOOYAH has already featured multiple mouth-watering builds, including the Mushroom Swiss and spring’s The Indulgent BBQ.
18. The Taste to Try program isn’t just resonating with customers; MOOYAH franchisees have enjoyed as much as a 40-plus percent increase in check averages with Taste to Try items over the last few years.
19. Michael Mabry, president and COO of MOOYAH Burgers, Fries & Shakes, said, “We are proud of serving the very best burgers and providing Guests with endless options to suit any occasion and franchisees with new ways of marketing our menu. The Oktoberfest is a fun and delicious way to welcome the fall season, and we anticipate the burger and hot dog offerings to be just as successful in 2018 as the original burger was last year.”
20. The first MOOYAH restaurant was opened in 2007 by restaurant industry veterans Rich Hicks and Todd Istre in Plano, Texas. Hicks and Istre immediately started franchising the MOOYAH concept and continued to add new items to the menu and update its branding. In 2009, MOOYAH added “shakes” to its logo to highlight the popularity of the brand’s shakes. Over the next few years, MOOYAH made a few menu changes, including the addition of sweet potato fries and the decision for each MOOYAH location to start baking its own buns. More recently, in 2014, MOOYAH expanded its menu once again with fresh salads.
21. In 2013, MOOYAH opened its first international location in Dubai and celebrated the opening of its 50th restaurant. MOOYAH’s growth did not slow down and the brand opened its 100th store in 2016. As MOOYAH continued to expand, Hicks and Istre sold the company in 2017 to an affiliate of Balmoral Funds LLC, a lower-middle-market private equity firm, and Gala Capital Partners, LLC, a private investment company with a focus on hospitality and food franchises.
22. Today, MOOYAH has locations across the United States, Canada, Bahrain, Oman, Qatar, Saudi Arabia, and the U.A.E.
Entrepreneur’s Franchise 500
23. MOOYAH Burgers, Fries & Shakes did not rank on Entrepreneur’s 2018 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of MOOYAH 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 MOOYAH’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: 66
- Outlets at the End of the Year: 79
- Net Change: +13
- Outlets at the Start of the Year: 79
- Outlets at the End of the Year: 73
- Net Change: -6
- Outlets at the Start of the Year: 73
- Outlets at the End of the Year: 77
- Net Change: +4
- Outlets at the Start of the Year: 4
- Outlets at the End of the Year: 3
- Net Change: -1
- Outlets at the Start of the Year: 3
- Outlets at the End of the Year: 3
- Net Change: 0
- Outlets at the Start of the Year: 3
- Outlets at the End of the Year: 2
- Net Change: -1
Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis
- As of December 31, 2017, there were a total of 79 Restaurants in operation in the United States, and 77 of them were owned and operated by third-party franchisees.
- Of the 77 franchised Restaurants, 4 operated in non-traditional locations, and 15 did not operate for the entire calendar year, including one location that temporarily shut down as a result of an ownership transfer.
- In the chart below, MOOYAH shows results for the remaining 58 Restaurants that: (1) were owned and operated in the United States by third-party franchisees, (2) were in operation for all of calendar year 2017, and (3) were operated in standard locations and not in non-traditional venues.
- For purposes of these calculations, “Gross Sales” means all sales, revenues, charges, and receipts received by you from your Restaurant or attributed to your Restaurant, whether from cash, check, credit or debit card, barter exchange, trade credit, or other credit transactions, but exclusive of Sales Tax and any refunds made for your customers.
- “Sales Tax” includes, but is not limited to, sales or use tax, goods and services tax, gross receipts tax, excise tax, or other similar tax collected by you from your customers and paid to the appropriate taxing authority.
- Payments by gift certificate, gift card, or similar programs are included in Gross Sales when the gift certificate, gift card, or similar item is redeemed.
- Gross Sales also include all insurance proceeds you receive for loss or interruption of business due to a casualty or similar event at your Restaurant.
- This definition is the same definition for “Gross Sales” that is used in the Franchise Agreement and that will serve as the basis for your calculation of royalty and certain other fees.
- 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.
- In each instance in which MOOYAH shows the average Gross Sales, it calculated the average by adding the Gross Sales for all of 2017 as reported by all Restaurants in the group, then divided that number by the number of Restaurants in the group.
- In each instance in which MOOYAH shows an average, it also shows the range and the median. The range is the space between the lowest and highest points in the data set. The median is the middle data point; that is, the data point in the center of all data points.
- Since, in each case shown below, 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 charts below show the data for 3 groups of Restaurants: (1) all 58 Restaurants that met the criteria described above (the “Complete Set”), (2) the group that represents the top 10%, by Gross Sales, of the Restaurants in the Complete Set (6 Restaurants), and (3) the group that represents the bottom 10%, by Gross Sales, of the Restaurants in the Complete Set (6 Restaurants).
Complete Set (58 Restaurants)