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 2019 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 2019 FDD
- Section IV – Number of franchised and company-owned MOOYAH outlets 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 MOOYAH’s financial performance representations, based on Item 19 of the company’s 2019 FDD, including information on the:
- 2018 average, median, high, and low gross sales for the top quartile, second quartile, third quartile, bottom quartile, and all 63 franchised traditional MOOYAH restaurants that operated for the entire 12-month period which ended December 30, 2018
Section I – Background Information
19 Things You Need to Know About the MOOYAH Burgers, Fries & Shakes Franchise
Hires Industry Veterans for Next Chapter in Company’s Growth
1. In early May 2019, MOOYAH Burgers, Fries & Shakes announced that it had spent the first quarter of the year laying the foundation for a strong year by hiring key executives that will enhance franchisee support and prepare for rapid franchise development throughout the remainder of the year and beyond.
2. MOOYAH welcomed Tony Darden as president and chief operating officer. Darden comes to MOOYAH after serving as COO of Taco Bueno. Prior to Taco Bueno, Darden spent more than a decade at Panera Bread and more than 15 years at Bennigan’s.
3. MOOYAH also added a new director of supply chain, a real estate and development manager, and a construction project manager in the first quarter of 2019 to prepare for a growth-oriented next chapter. The MOOYAH executive leadership team now boasts more than 200 combined years of restaurant and franchise industry experience.
4. Anand Gala, CEO and chairman of MOOYAH, said, “Tony and our enhanced leadership team bring a wealth of knowledge and a passion that fits the culture of MOOYAH and the direction for the company moving forward. With these strategic additions, combined with our dedicated existing team members, we now have an unparalleled depth of restaurant and franchise industry experience informing the future of the brand. We are ready to leverage that in the interest of providing increased support to our operators and in expanding the MOOYAH brand into new markets and territories with both new and existing franchisees.”
5. After an affiliate of Balmoral Funds, LLC and Gala Capital Partners, LLC acquired the MOOYAH brand in 2017, Gala took over the reins at MOOYAH and focused on the areas of streamlined operations, unparalleled franchisee support, and strategic franchise development initiatives. This strengthened executive leadership team, led by Darden, is the next step in Gala’s strategy for the 12-year-old brand.
6. Darden added, “When you look at MOOYAH, the food quality is there. It’s top-notch in the industry. The aesthetics of the restaurant are great and the culture of the brand is simply amazing, and you experience that in each and every restaurant within the system. I’ve been a fan of the brand for a while and my family has been going to one near our home regularly for years. You can just feel there’s something special about the culture at MOOYAH and I’m excited to now be a part of it.”
7. John Hunter came on board at MOOYAH in February 2019 as the director of supply chain, most recently working as director of supply chain for Zoës Kitchen where he supported more than 250 locations nationally. He also held positions in supply chain for Nebraska Furniture Mart and TGI Fridays. Hunter’s expertise has already proven valuable for MOOYAH in terms of procurement, logistics, and distribution.
8. Scott Haehnel, real estate and development manager, joined the MOOYAH team in March 2019, bringing with him an extensive background in the service industry including as vice president of development for Eskimo Hut, area representative for Firehouse Subs, and vice president of operations for Papa John’s in Northern California. Haehnel opened more than 100 locations with Papa John’s and Firehouse Subs in Texas.
9. Finally, Coleman Williams joined MOOYAH as construction project manager also in March 2019 with previous positions in IT, marketing, and most recently, supply chain at Zoës Kitchen. Williams’ experience with budget analysis, cost-savings opportunities, and project management have empowered MOOYAH to determine a benchmark landed cost for current and future franchisees.
10. Darden said, “Once our entire team is aligned on how we’re executing on a daily basis, there isn’t any other brand that can match us. We are already optimally positioned for success because MOOYAH is an established brand with a strong existing system and passionate franchisees. Further sharpening the in-restaurant experience and exploring exciting areas such as tech and operational strategy will ultimately bring the unique MOOYAH experience to additional markets and communities.”
Introduces Lifestyle Burgers to Meet Consumers’ Growing Dietary Needs
11. At the beginning of April 2019, MOOYAH Burgers, Fries & Shakes launched its newest menu line: a collection of Lifestyle Burgers. With these new menu items, MOOYAH wanted to create options that provide something for everyone due to an ever-growing demand to meet consumers’ dietary preferences and choices. Now, MOOYAH’s Lifestyle Burgers will provide customers with options for those who follow a Paleo, Keto, Whole30, vegetarian, and gluten-free lifestyle.
12. According to Natalie Anderson-Liu, vice president of brand for MOOYAH Burgers, Fries & Shakes, “We know our Guests have certain dietary restrictions and preferences that shape their lifestyles and meal choices, and we are committed to giving them options to accommodate those needs. For more than a decade, we’ve been giving our Guests unique options like our Iceburgers, but we wanted to go beyond that and ensure that Guests with all dietary preferences know they can enjoy a meal at MOOYAH when they visit our locations.”
13. The line of Lifestyle Burgers includes:
- The Paleo – Featuring a 1/2 lb. certified Angus beef Iceburger, Applewood smoked bacon, sliced avocado, pickles, diced onion, tomato, and mustard;
- The Keto – Featuring an all-natural Jennie-O turkey Iceburger, Cheddar cheese, sliced avocado, jalapeños, tomato, and real mayo;
- The Whole30 – Featuring a 1/4 lb. certified Angus beef Iceburger, sliced avocado, diced onions, tomato, and Cholula;
- The Vegetarian – Featuring a MorningStar Farms black bean veggie burger, sliced avocado, fried onion strings, lettuce, tomato, pickles, and MOOYAH sauce on a non-GMO multigrain bun; and
- The Gluten-Free – Featuring a 1/4 lb. of certified Angus beef Iceburger, pepper Jack, Applewood smoked bacon, jalapeños, Cholula, and real mayo on a gluten-free bun.
14. On a final note, Anderson-Liu added, “Ultimately, we are aiming to provide all of our Guests with lighter options should they embrace a lifestyle that includes certain dietary restrictions or preferences. Regardless of if our Guests have restrictions due to health-related issues, or are sticking to a very specific nutrition plan, our new Lifestyle Burgers provide everyone with a quality option that they can feel good about.”
15. MOOYAH Burgers, Fries & Shakes was founded in 2007 by Rich Hicks and Todd Istre in Plano, Texas. Franchising began right away and following the success of the first location, more MOOYAH restaurants in Texas followed.
16. Although the restaurant had been selling shakes from the beginning, it was not added to the brand’s full name until 2009. Over the next few years, MOOYAH added more menu items, including sweet potato fries. Additionally, all of MOOYAH’s restaurants started baking the brand’s proprietary white and wheat buns in-house every day.
17. In 2013, as MOOYAH continued to grow across the United States and celebrated the opening of its 50th domestic location, the company opened its first international restaurant in Dubai. MOOYAH continued to expand both in the U.S. and internationally and in 2016, the brand opened its 100th restaurant.
18. The following year, MOOYAH was sold to private equity firms Gala Capital Partners, LLC and Balmoral Funds, LLC for an undisclosed amount. The acquisition came as MOOYAH celebrated its 10th anniversary.
Entrepreneur’s Franchise 500
19. MOOYAH Burgers, Fries & Shakes did not rank on Entrepreneur’s 2019 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 2019 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 2019 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- 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: 77
- Outlets at the End of the Year: 73
- Net Change: -4
- 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
- Outlets at the Start of the Year: 2
- Outlets at the End of the Year: 1
- Net Change: -1
Section V – Financial Performance Representations (Item 19, 2019 FDD) and Analysis
- As of December 30, 2018, there were a total of 74 Restaurants in operation in the United States, and 73 of them were owned and operated by third-party franchisees.
- Of the 73 franchised Restaurants, 6 either operated in non-traditional locations or had limited operating hours, and 4 did not operate for the entire 12-month period which ended December 30, 2018. In the chart below, MOOYAH shows results for the remaining 63 Restaurants.
- 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 2018 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.
- If 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 5 groups of Restaurants:
- (1) all 63 Restaurants that met the criteria described above (the “Complete Set”);
- (2) the Restaurants in the Complete Set that represent the top 25% by Gross Sales (15 Restaurants) (“Top Quartile”);
- (3) the Restaurants in the Complete Set that represent the 75% to 51% by Gross Sales (16 Restaurants) (“2nd Quartile”);
- (4) the Restaurants in the Complete Set that represent the 50% to 26% by Gross Sales (16 Restaurants) (“3rd Quartile”); and
- (5) the Restaurants in the Complete Set that represent the bottom 25% by Gross Sales (16 Restaurants) (“Bottom Quartile”).
Complete Set (63 Restaurants)