How much is the franchise fee?
The franchise fee is $25,000* per restaurant location. The franchise fee is for the initial license to use the Hwy 55 name and trademark, training, site assistance and other pre-opening services to assist in starting your Hwy 55 franchise.
What is the charge for royalties?
Individual franchisees pay a royalty fee equal to 5% of annual gross sales, plus an additional 1% dedicated to marketing your restaurant. This charge covers the continued use of the Hwy 55 name and trademark, as well as access to our operation methods and ongoing support including marketing.
What about Marketing?
We have established and will administer a Marketing/Advertising fund on behalf of the Hwy 55 brand to provide national or regional creative materials for the benefit of your Hwy 55 location.
We currently require Hwy 55 franchisees to contribute 1% of gross sales for each restaurant to the Marketing/Advertising fund; 0.5% of gross sales will stay in your region. We want to make sure that we’re marketing close to home.
In addition to contributions described above, we recommend you spend 2% of gross sales annually for local advertising in your market area. This amount is not paid to us, but rather is spent by you at your discretion.
*International franchise fees and minimum financial requirements may differ.
Can I acquire the right to develop an entire area?
If you’re going to be an Area Developer, then you will sign an Area Development Agreement and pay an area development fee. Your Area Development Fee depends on how many Hwy 55 restaurants you wish to develop.
Do I receive assistance in opening my business?
Yes. In addition to your full training program, Hwy 55 will send trained representatives to work with you and your team at your restaurant for a minimum of 10 working days. We will assist with 5 on-site pre-opening days and 5 on-site post-opening days. We reserve the right to stay longer to ensure a successful opening.
What training will I receive from Hwy 55?
We provide initial training to your operating principal, general manager and one assistant manager for a 3-day Leadership Program at our home office in Mt. Olive, NC. and one week of hands-on experience at one of our flagship restaurants
These programs provide you with the administrative and technical aspects of running your restaurant. Costs of the Leadership programs are included in your franchise fee; however, all travel and lodging costs will be at the franchisee’s expense.
What about other costs?
Investments vary based on unit size and local conditions. The estimated investment that is required to open a Hwy 55 restaurant ranges from $196,855 – $396,055*.
This investment range is broken down in our 2017 Franchise Disclosure Document and includes franchise fee, leasehold improvements, furniture, fixtures, equipment, signage, smallwares, initial inventory, opening expenses, etc.
What are the term limits of the Franchise Agreement?
The initial term of the Hwy 55 Franchise Agreement is 10 years. The Franchise Agreement is renewable for two successive terms of five years each for those franchisees that meet our renewal criteria. There is no renewal fee.
What are the minimum financial requirements for a Hwy 55 Franchisee?
We require a minimum of $125,000* in liquid assets (per restaurant) between you and any financial partners.
What is the average size of a Hwy 55 restaurant?
The typical Hwy 55 restaurant ranges from 2,000 to 2,400 square feet. Hwy 55 restaurants are adaptable to many venues, including: pad or commercial sites, strip & lifestyle centers, urban/downtown locations, conversions of any existing restaurants, enclosed mall/food court locations, university or office locations and airport, train station & other non-traditional locations.