Perkins Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$40,000
Investment required
$1,184,000 - $3,290,000
Royalty fee
4.00%

Perkins: Elevating American Dining with Timeless Classics

Perkins is a prominent American casual dining brand with its headquarters in Sandy Springs, Georgia. Established in 1958 by Matt and Ivan Perkins, the brand started as a humble pancake house in Cincinnati, Ohio.

Perkins invites diners to enjoy a diverse menu featuring a wide array of pancake and waffle creations, beloved American dishes available all day, steak options, and burgers. Additionally, patrons can savor a variety of handcrafted sandwiches, soups, and salads, along with a tempting range of pies and mouthwatering muffins.

The welcoming atmosphere and commitment to quality have made Perkins a favorite destination for breakfast, lunch, and dinner. Each restaurant strives to provide a comfortable dining experience with friendly service and delicious food that keeps guests coming back.

The chain began franchising in 1965, expanding its reach significantly. Perkins now has a widespread presence in numerous states across the United States and several provinces in Canada. This growth reflects the brand's enduring popularity and the successful execution of its business model.

Whether you are in the mood for a hearty breakfast, a satisfying lunch, or a delightful dinner, Perkins offers a meal for every occasion. The menu’s versatility and the inviting ambiance make it an ideal spot for family gatherings, casual outings, and everything in between.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Perkins offers 2 types of franchises:

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Investment Table

Type Unit Initial Investment
NON-TRADITIONAL Perkins UNIT $1,183,715 - $2,836,465
A PERKINS RESTAURANT A PERKINS RESTAURANT $1,534,715 - $3,290,465

We are summarizing below the main costs associated with opening Perkins Shop franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Perkins Restaurant franchise

Type of Expenditure Low Amount High Amount
Initial Franchise Fee $40,000 $40,000
Training Fee and Travel and Living Expenses While Training $97,000 $119,000
Real Estate – Rent for First 3 months $20,000 $60,000
Improvements $575,000 $1,967,000
Interest during construction $25,000 $30,000
Equipment and Seating $490,000 $650,000
Signs and Décor $53,000 $82,000
Site Plan/Engineering Drawings $12,500 $18,500
Travel Expenses for Opening Guide Meeting $0 $750
Smallwares, Small equipment, Opening Inventory and Uniforms $53,000 $82,000
POS System $15,000 $20,000
Help Desk (total for first 3 months) $215 $215
Hardware and Software Components - Computer Security $2,500 $3,000
Other Computer and Technology Expenses (first 3 months) $2,500 $3,000
Grand Opening Promotion $4,000 $10,000
Miscellaneous Opening Costs $45,000 $55,000
Additional Funds-3 Months $100,000 $150,000
Totals $1,534,715 $3,290,465

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Number of units

2023
Franchised units

219

196

189

Company-owned units

90

85

81

Total units

309

281

270

Franchise Disclosure Document

Training 

The Perkins training program encompasses a comprehensive range of restaurant operations to ensure franchisees are well-prepared for success. This program includes:

On-the-Job Training: Franchisees participate in an extensive training regimen that lasts up to 35 days. This hands-on experience covers various facets of the restaurant business, providing the practical knowledge needed to run their operations effectively.

Operational Assistance: Perkins offers expert guidance on crucial elements such as site evaluation and selection, equipment layout planning, accounting practices, merchandising strategies, and advertising techniques.

Computer Systems: To ensure smooth operations, Perkins trains franchisees on their proprietary computer systems. This includes maintenance services, help desk support, and specialized software designed specifically for the Perkins System.

Marketing and Advertising: Perkins allocates dedicated resources to media advertising, market research, website maintenance, and digital marketing strategies. These efforts help keep the brand prominent and engaging for its target audience.

Continuous Support: Franchisees benefit from ongoing support through additional training programs, seminars, and refresher courses. Perkins ensures that franchisees stay informed about the latest developments in the restaurant industry.

Territory Protection

Perkins franchisees do not benefit from an exclusive territory, which means they may encounter competition from other franchisees, company-owned outlets, or other distribution channels and competitive brands managed by the company.

Franchisees are authorized to operate a "Perkins" Restaurant solely at the specific location designated in the Franchise Agreement. This designated area, known as the "Territory," is outlined in Exhibit B of the agreement. During the term of the agreement, the company agrees not to establish or permit the establishment of another Perkins Unit within this defined "Territory."

Nonetheless, the company retains certain rights and exclusions from this territorial protection, allowing it to engage in various business activities beyond these territorial boundaries.

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