The Investment

The Investment

Franchise Qualifications

Although there may be a number of viable franchisee profiles, StarBQ House Management believes that it should try to attract franchisees that meet the following criteria:

  • Well Rounded: Hard worker, social, commander, leader, curious, intelligent, gregarious, good under stress, fast, decision-maker, ability in the kitchen, people skills, involved in community, charming, understands business, can deal with numbers, knows good food, not pretentious, down-to-earth, friendly, exciting, leader by example, clean, tidy and nimble.
  • Strong sales and customer service abilities. StarBQ House model is successful because the owners have been aggressive and consistent in marketing the services and have always provided great service to their customers on a consistent basis. The owner operator for a StarBQ House franchisee must be comfortable with face-to-face customer service work and sales directly to customers. A franchisee must be a great “people person” who is outgoing and can bond with the customer base and is not afraid to be outgoing.
  • Good with Timing and Schedule Management. The busy schedule and fast pace of StarBQ House will keep the owners busy during the week. They will have a manageable staff, but keeping the schedule put together efficiently and managing the timing of staffing and such will require certain skill sets. This is consistent with most franchise companies in the marketplace.
  • General Business Acumen. It is important that a franchisee be able to understand and interpret the various accounting and business reports that are essential in properly managing the franchise. It is also important that the buyer be hard working and detail-oriented.
  • Company Culture “Buy-in”. The franchisee must understand and exhibit StarBQ House culture. The success is based on quality foods and a fun family setting as well as the culture demonstrated and represented by all employees.
  • High personal standards: excellence, honesty, integrity, etc. Success in the restaurant industry depends entirely on reputation and commitment to the customers themselves. The success and failure of this business will be reliant on the customers not only receiving great food, but also quality service and creating a family friendly, fun and trendy atmosphere. It is critical that StarBQ House franchisees have the customers as their number one priority in servicing clients and delivering the services on which StarBQ House has built its reputation.
  • Able to meet initial investment requirements. StarBQ House franchisee should have about $202,500 to $345,500 in investment capital to account for working capital, startup costs, marketing dollars and initial franchise fees to get their StarBQ House off the ground. The range depends entirely on the size of the location and the range of the square footage for the operation. The franchisee will also be required to have $100,000 in liquid capital in order to cover loose expenses and operations. In marketing to potential franchisees, we will advertise this as the minimum cash requirement for a potential buyer. Potential franchise buyers should have a net worth of $300,000 or more in order to be considered as a potential franchisee.
  • Understands Cost Management – A good franchise candidate for StarBQ House will know and understand how to manage costs and operational expenses for the restaurant.
DESCRIPTIONLOWHIGH
AVERAGE$274,000
Real Estate/Rent$3,000$8,000
Utility$300$600
Leasehold Improvements$40,000$80,000
Market Introduction Program$5,000$10,000
Furniture, Fixtures, and Equipment$60,000$100,000
Computer Systems$400$600
Insurance$1,000$5,000
Vehicle (Catering)$500$20,000
Signage & Wrap$5,000$10,000
Office Expenses$800$1,200
Inventory$4,000$6,000
Licenses & Permits$1,000$1,600
Dues and Subscriptions$1,000$1,500
Professional Fees$1,500$3,000
Working Capital$35,000$50,000
TOTAL BEFORE FRANCHISE COSTS$158,500$297,500
AVERAGE$228,000
Training$4,000$8,000
Franchise Fee$40,000$40,000
TOTAL WITH FRANCHISE COSTS$202,500$345,500

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