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 2019 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 2019 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 2016, 2017, and 2018, based on Item 20 of the company’s 2019 FDD
- Section V – Presentation and analysis of Beef Jerky Outlet’s financial performance representations, based on Item 19 of the company’s 2019 FDD, including information on the:
- 2016, 2017, and 2018 average, highest, and lowest gross product sales; average gross product cost; average gross margin dollars; and average gross margin percentage for the Beef Jerky Outlet stores owned and operated by the franchisor’s affiliates for at least 1 year
- 2016, 2017, and 2018 average, median, highest, and lowest gross product sales for the Beef Jerky Outlet stores owned and operated by franchisees for at least 1 year
- 2016, 2017, and 2018 average, median, highest, and lowest 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
- 2016, 2017, and 2018 average, median, highest, and lowest 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
Hosts First-Ever Back to School Giveaway
1. At the beginning of August 2018, Beef Jerky Outlet hosted its first-ever $5,000 Back to School Giveaway, benefiting the school of the winner’s choice. The contest opened on August 1 and ran through September 15.
2. Jenn Szlachta, director of marketing for Beef Jerky Outlet, said, “We are ecstatic to have the opportunity to give back to our schools. We believe it is very important to support our nation’s educators. We want to provide schools with monetary assistance to support programs at a local level. This is our first year hosting our Back to School Giveaway, and we hope to see many people register to win for their local school.”
3. In addition to the Back to School Giveaway, local Beef Jerky Outlet stores across the country launched individual fundraising programs to further give back to their communities. At participating Beef Jerky Outlet locations, students can sign up to sell beef jerky as a way to raise money for their school or club. Between 30 and 50 percent of profits go directly back to the school, depending on the products sold.
4. Szlachta added, “We have heard from many of our store partners that their friends and family were tired of the same old fund raiser products and they requested we create a Beef Jerky Outlet version of fundraising. We have included our best-selling jerky flavors, along with summer sausages and meat sticks. It’s easy to participate and we are already seeing a terrific response from our schools.”
Celebrated Father’s Day with Korean BBQ Pork Jerky
5. In early June 2018, Beef Jerky Outlet rolled out its new Korean BBQ Pork jerky in celebration of National Jerky Day and Father’s Day. Korean BBQ Pork jerky is inspired by flavors of select cuts of pork complemented with additional BBQ seasoning.
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6. In addition to the debut of the new jerky flavor, the Beef Jerky Outlet Father’s Day celebration included giveaways across the country. At participating locations, meat lovers were able to enter to win a Weber grill. The winners were announced on Father’s Day.
7. Scott Parker, CEO of Beef Jerky Outlet, said, “We are excited to be celebrating Father’s Day with our new Korean BBQ Pork jerky. It makes a great gift. In fact, customers can build their own custom jerky gift basket to celebrate Dad this summer. Along with our new Korean BBQ jerky, customers can pick and choose their favorite rubs, spices and hot sauces to create the perfect barbecue-themed present for their dad this Father’s Day.”
8. Beef Jerky Outlet continues to grow steadily across the United States and one of its newest locations opened in early October 2018 in Hershey, Pennsylvania at the Hershey Towne Square. The new location is owned and operated by Doug Eby and his wife Cindy.
9. Like all Beef Jerky Outlets, the Ebys’ store sells a wide variety of fresh-made jerky and other snacks. All of the jerky is available for sampling so customers don’t have to be unsure about what they’re purchasing. Flavors range from Cajun BBQ smoked brisket to grass-fed beef slices, cherry maple smoked turkey and peppercorn smoked beef, among others. The store also carries Red Truck Beef Jerky and biltong, a type of South African dried meat strip that is cured for 17 days.
10. According to Doug Eby, “Certainly people that love beef jerky absolutely adore [Beef Jerky Outlet] and the folks that never been to one, which is the majority of folks, have certainly enjoyed it. That’s what people find so fascinating about it, the franchise has so many different flavors so we are able to offer that to people that love jerky.”
11. Beef Jerky Outlet was founded in 2010 by Paul Lyons and Scott Parker in Destin, Florida. Lyons and Parker noticed that many people were suddenly interested in beef jerky and they began experimenting with different varieties and flavors. All of Beef Jerky Outlet’s products are made in small batches to ensure freshness and quality. To fill out the extra space in the Beef Jerky Outlet stores, they also sell popcorns, cheeses, peanut butters, and a wide variety of other treats.
12. Not long after opening the first store, Lyons and Parker started franchising the Beef Jerky Outlet concept while also opening a few additional company-owned locations. Today, there are Beef Jerky Outlet locations across the United States. Parker and Lyons have remained with the company, serving as CEO and president, respectively.
Entrepreneur’s Franchise 500
13. Beef Jerky Outlet ranked No. 141 on Entrepreneur’s 2019 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 2019 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 2019 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- 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: 97
- Outlets at the End of the Year: 99
- Net Change: +42
- 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
- Outlets at the Start of the Year: 7
- Outlets at the End of the Year: 6
- Net Change: -1
Section V – Financial Performance Representations (Item 19, 2019 FDD) and Analysis
- The franchise is for the operation of a business under the “Beef Jerky Outlet” name which is a specialty retail 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 sales, average gross product cost, average gross product profit, and average gross product margin achieved by 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 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.
- Your sales and gross product margins may vary depending on a number of factors, including the location of your Store, pricing strategies, and how you operate your business.
- Gross Margin means total sales less cost of goods sold.
- 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 Affiliated Stores. There are no product cost differences between Affiliated Stores and Franchised Stores.
- 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, costs of goods sold, 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.
Part 1 – 2016, 2017, and 2018 Average Results of Affiliated Stores