Frequently Asked Questions
Initial Investment
Steps to Becoming a Franchisee
Disclaimer
Franchise Application
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Frequently Asked Questions

Question:
Is previous food or restaurant experience necessary to obtain a Spicy Pickle franchise?
Answer: Restaurant experience is always helpful, but if you have experience running another type of business including working with employees and customers, managing cash and generating financial statements, we have a complete training program and manuals as well as field operational staff that can help you learn this business as well as provide ongoing support for you.

Question:
Is there a cost for the training program or ongoing support?
Answer: The cost of the training school for up to two people is included in your franchise fee, which also includes training and support at your location for the Grand Opening. Travel, lodging, and food, are the responsibility of the individual franchisee. Ongoing field support after opening can be provided at a per diem cost.
Question:
How much does a franchise cost?
Answer: The cost of a franchise is $45,000, payable upon signing of the Franchise Agreement.
Question:
Am I protected from other Spicy Pickle stores opening near my store?
Answer: At the time a location is determined for your first store a “Protected Area” will be established. The size of the area will depend on the density of population, traffic, competition and other factors.
Question:
Can I reserve territories for future development after my first store?
Answer: Yes. When you sign your first Franchise Agreement, you may also sign a Development Agreement defining the number of stores and protecting the area(s) in which you plan to open those stores. Each additional store reserved under a Development Agreement requires a discounted franchise fee of $20,000. (For each store, half of that discounted franchise fee is due upon signing the Development Agreement. The remaining half of each store's fee is due at a later date pursuant to the terms of the Development Agreement.)
Question:
How long do I have to develop the stores under the Franchise Agreement and Development Agreement?
Answer: Generally you have one year to obtain an approved location, and 180 days to open the first store. However, if the location cannot be secured within one year we can extend that time based on reasonable circumstances. That would also extend the time for opening. The Development Agreement will define the number of stores to be opened and the opening schedule as negotiated between the franchisee and franchisor.
Question:
How is an area defined for a Development Agreement?
Answer: Based on the general location you wish to operate in, we will define an area(s) large enough to hold the number of stores you have purchased under the Development Agreement. You will also have a right of first refusal to any location in the Development area that becomes available in addition to the store opening schedule in the Development Agreement.
Question:
How long is the initial term of the Franchise Agreement, and is it renewable?
Answer: The Franchise Agreement is for 10 years and renewable for 10 additional years upon payment of 20% of the then current Franchise Fee.
Question:
How much is the royalty payment and how is it collected?
Answer: The royalty is 5% of net sales (gross sales less taxes, comps and discounts), payable weekly or by bank draft. You must use the POS system we designate and have internet access at your store location. Your POS system will be polled to keep track of sales.
Question:
What are the advertising fees?
Answer: The advertising fee can be up to 2% of net sales with a portion of that fee reallocated to a regional Co-op. You are also required to spend 1% of net sales on local advertising. This may also be reallocated to a regional Co-op.
Question:
What is the advertising fee used for?
Answer: We use the fees for creation, production and placement of commercial media advertising, public relations, market research, brand recognition and in-house staff coordinating these efforts. We do not use the funds to solicit franchisees.
Question:
I have little or no experience in commercial lease transactions. Will Spicy Pickle assist me?
Answer: Yes. We have on staff personnel who are familiar with commercial leasing, including tenant work letters, and letters of intent. While we will review and help prepare these documents, we do not serve as legal counsel or in any other professional capacity.
Question:
How much will it cost to open a store?
Answer: The cost of opening a Spicy Pickle varies with location and size. Please see “Initial Investment”.
Question:
What can I expect to make from operating a Spicy Pickle franchise?
Answer: We have included in our FDD (Franchise Disclosure Document) information on the average sales volume of stores in operation more than one year.

 
 
 
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