In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the Beef Jerky Experience franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Beef Jerky Experience franchise, based on Item 7 of the company’s 2021 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Beef Jerky Experience franchise, based on Items 5 and 6 of the company’s 2021 FDD
- Section IV – Number of franchised and company-owned Beef Jerky Experience outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD
- Section V – Presentation and analysis of Beef Jerky Experience’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:
- 2018, 2019, and 2020 average, highest, and lowest gross product sales; average gross product cost; average gross margin dollars; and average gross margin percentage for the Beef Jerky Experience stores owned and operated by the franchisor’s affiliates for at least 1 year
- 2018, 2019, and 2020 average, median, highest, and lowest gross product sales for the Beef Jerky Experience stores owned and operated by franchisees for at least 1 year
- 2018, 2019, and 2020 average, median, highest, and lowest gross product sales for the top third, middle third, and bottom third of the Beef Jerky Experience stores owned and operated by the franchisor’s affiliates for at least 1 year
- 2018, 2019, and 2020 average, median, highest, and lowest gross product sales for the top third, middle third, and bottom third of the Beef Jerky Experience stores owned and operated by franchisees for at least 1 year
Section I – Background Information
16 Things You Need to Know About the Beef Jerky Experience Franchise
Donated Over 4,000 Bags of Jerky to Support Local Heroes
1. In May 2020, frontline heroes were hard at work keeping people healthy and safe and many said that grabbing a snack between shifts was nearly impossible because of the rapid pace of people in need. Beef Jerky Experience owners wanted to help by providing these critical teams with high-quality jerky.
2. Paul Lyons, president of Beef Jerky Experience, said, “We had the opportunity to do something exceptional, to really make a difference. Our owners worked hard to collect over 4,000 bags of premium Beef Jerky from their local communities. Each owner made a difference in their hometowns by sharing some jerky joy.”
3. For the month of April, locally-owned Beef Jerky Experience outlets collected and matched 1-for-1 every Hero SnackPak donated by loyal customers. Owners distributed jerky to local hospitals, fire stations, police departments, pharmacies, and other frontline teams in early May.
4. “We have been overwhelmed with the support from healthcare administrators and generous members of our community,” said Cory and Scott Neer, franchise owners of the Beef Jerky Experience in St. Charles. “It presented a welcomed momentary distraction from the battle they were fighting. We only wish we could have seen the smiles behind the masks, but their eyes said it all. Everyone loves jerky!”
5. Most Beef Jerky Experience locations had been relying on e-commerce business for several weeks. “We are very pleased that soon over 90% of Beef Jerky Experience locations will be open and serving their customers,” said Kathy Raines, COO of Beef Jerky Experience. “It is part of our DNA to reach out to communities, veterans and schools multiple times a year. Jerky is an extremely popular snack, so we never have any trouble finding people to support.”
6. Beef Jerky Experience was encouraged to see their owners across the nation respond so quickly to the Hero event. “It is very gratifying to have owners who want to get involved with their communities and provide support. We have owners who are in the medical, legal and service industries, and they have been instrumental in directing our efforts,” said Scott Parker, CEO of Beef Jerky Experience.
Opens Mega Store in American Dream Mall
7. In February 2021, Beef Jerky Experience announced that it had joined the world-class entertainment, retail, and dining attractions at American Dream Mall in Rutherford, New Jersey. The new location is located near the entrance to DreamWorks Waterpark, Nickelodeon Universe, and It’s Sugar.
8. Beef Jerky Experience specializes in more than 100 varieties and sizes of premium jerky. There are exotic meats like kangaroo, alligator, venison, and elk, as well as specialty flavors such as Slap Ya Mama and fan favorites like Prime Rib and Cherry Maple. Kosher jerky, gourmet snacks, popcorn, candy, sauces, and rubs are also available.
9. “It is such a fun and unique shopping experience. We are extremely excited about joining American Dream and look forward to sharing our jerky with you,” said local owner and New Jersey native, Jayme Mortman. “We also have a great assortment of personal and business gift ideas. We have had such good response from everyone in the mall. They are so surprised to find a store completely dedicated to jerky!”
Celebrated Dads with 50,000 Pounds of Jerky
10. At the end of June 2020, Beef Jerky Experience said that it was at the top of many shoppers’ lists as the company saw an exponential increase in jerky orders in the month of June. “We were delighted to offer our guests a wide range of gifts including our unique gift boxes filled with delicious fan favorite jerkies including Traditional Prime Rib and Smoked Cherry Maple,” said Scott Parker, CEO of Beef Jerky Experience. “The best gift to give Dad is jerky. We were glad to see our gift box sales and Mega Deal event bring many new jerky lovers to BJE stores and online.”
11. According to a press release, sales in June increased by a staggering 150 percent. The abundance of products was extended, as the company launched a special offering for the holiday: the Father’s Day Mega Deal that included a blowout sale of 14 bags of jerky for only $100.
12. Paul Lyons, president of Beef Jerky Experience, added, “Our owners were very excited to see customers come back in after the shutdown and find our stores stocked and ready for Father’s Day. We know jerky is a fan favorite for dads, grads, and summer road trips.”
13. Beef Jerky Experience’s local owners also partnered with national brand Big Green Egg for a giveaway, which allowed guests nationwide the opportunity to win a Minimax Big Green Egg BBQ. “Congratulations to Becky Lindquist Wiitala from the great state of Minnesota – we hope you enjoy your Minimax Big Green Egg BBQ! We appreciate all those who entered the giveaway,” Lyons said.
14. Beef Jerky Experience (formerly Beef Jerky Outlet) was founded in 2010 by Paul Lyons and Scott Parker in Destin, Florida. Lyons and Parker came up with the idea for a beef jerky-focused store after noticing that people had suddenly become interested in beef jerky. Realizing that they could fill this niche and offer a wide variety of jerkies, including exotic meats, Lyons and Parker opened their first store. To help fill out the rest of the store, Lyons and Parker also sold cheeses, peanut butters, flavored popcorn, and many other treats.
15. Following the success of the first store, Lyons and Parker started franchising Beef Jerky Experience and there are now locations around the United States. Beef Jerky Experience also has an e-commerce store that ships products around the country.
Entrepreneur’s Franchise 500
16. Beef Jerky Experience did not rank on Entrepreneur’s 2021 Franchise 500.
Section II – Estimated Costs
- Please click here for detailed estimates of Beef Jerky Experience franchise costs, based on Item 7 of the company’s 2021 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Beef Jerky Experience’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 97
- Outlets at the End of the Year: 99
- Net Change: +2
- Outlets at the Start of the Year: 99
- Outlets at the End of the Year: 95
- Net Change: -4
- Outlets at the Start of the Year: 95
- Outlets at the End of the Year: 89
- Net Change: -6
- Outlets at the Start of the Year: 7
- Outlets at the End of the Year: 6
- Net Change: -1
- Outlets at the Start of the Year: 6
- Outlets at the End of the Year: 6
- Net Change: 0
- Outlets at the Start of the Year: 6
- Outlets at the End of the Year: 6
- Net Change: 0
Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis
- The franchise is for the operation of a business under the “Beef Jerky Experience” 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.
- The following tables represent information for Beef Jerky Outlet’s past 3 fiscal years ending October 31.
- In Part 1, Beef Jerky Experience 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 Experience 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 Experience 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 Experience 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.
- Many Beef Jerky Experience Store owners utilize various revenue streams including but not limited to satellite, festivals, loyalty marketing, online sales, etc.
- The figures used in this statement are average gross sales, average gross cost, average gross profit, and average gross margin only.
- Beef Jerky Experience 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 Experience’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 Experience 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.