Famous Dave's is a barbecue restaurant specializing in authentic smoked meats and comfort food. The franchise offers hickory-smoked spareribs, baby back ribs, and other classic barbecue dishes in a casual, family-friendly setting.
Key Insights
- Famous Dave's barbecue restaurants have grown from a single location to a recognized brand with a history of developing a loyal customer base through a unique menu and a lively atmosphere. The business emphasizes authentic pit barbecue and Southern hospitality in its operations.
- The franchise operates a multi-unit restaurant model, offering dine-in, takeout, and catering services. This diversified approach allows for multiple revenue streams and caters to various customer needs and preferences within the food service sector.
- The business is positioned within the broad casual dining and quick-service restaurant industry, specifically in the popular barbecue segment. This industry is characterized by consistent consumer demand for flavorful, prepared meals and a competitive landscape.
Franchise Fee and Costs to Open
Exploring the financial picture of Famous Dave's gives insight into both the upfront commitment and the potential revenue opportunity. According to FDD Item 7, opening this franchise typically involves an investment in the range of $1,299,250 - $4,510,750, along with a franchise fee of $28,000 - $35,000.
Financial Performance and Revenue
Yearly gross sales of $2,706,684 and estimated earnings of $324,803 - $406,003 show the potential financial performance of this franchise. These figures are crucial for prospective franchisees as they help to project revenue and profitability. They offer insight into the business's ability to generate income and can be used to compare its performance against other investment opportunities. The Franchise Payback Period of 8.5-10.5 provides an estimation of the time it might take for an owner to recover their initial investment. This metric is a key consideration for anyone evaluating the financial viability of a franchise, as it relates directly to the speed at which the business can become profitable. A shorter payback period can indicate a faster return on capital, which is a significant factor in making an informed decision about a franchise investment.
Training and Resources
Famous Dave's provides comprehensive training for new franchisees. Initial training is a two-week program, held at the Famous Dave's corporate training facility. This program offers extensive operational guidance. Furthermore, Famous Dave's offers ongoing support and access to a suite of resources, including marketing materials and operational manuals. The franchisor recommends utilizing these tools for business success.
Legal Considerations
Legal considerations for a Famous Dave's franchisee are outlined in the Franchise Disclosure Document (FDD) and the Franchise Agreement. Note that this franchise discloses lawsuits and/or bankruptcy information in its FDD, which may impact your evaluation. Subscribe now to access more details and be sure to consult a qualified attorney before proceeding.
Challenges and Risks
A franchisee might navigate the challenge of distinguishing their restaurant within a crowded local market, potentially requiring innovative marketing to attract diners. The intricate operations, from food preparation to staffing, demand consistent execution to maintain brand standards. Furthermore, maintaining a reliable flow of specialized ingredients, a cornerstone of the brand's identity, can present logistical considerations that impact day-to-day operations.
Franchise Datasheet
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