FREQUENTLY ASKED QUESTIONS
What is a FDD?
Franchise Disclosure Document. This document explains in detail the franchised business, investment requirements, and our mutual rights and obligations in the franchise relationship. It also contains examples of the agreements you will sign to become a franchisee.
What is the Development Fee?
$10,000 per O’Charley’s that you wish to develop, payable upon approval as an O’Charley’s franchisee and signing your Development Agreement.
What is the License Fee?
License Fee is $40,000 per O’Charley’s restaurant that you develop, payable upon approval of the specific O’Charley’s site.
What is the royalty fee?
What are the marketing and advertising fees? The royalty fee is 4% of weekly gross sales. Marketing Fund is currently 0.5% and Local Store Advertising and Marketing is 2%
What qualifications does O’Charley’s seek in its potential franchisees?
The minimum non-financial qualifications include previous success in business, supervisory and/or training experience, and the ability to work well with our organization and move forward with the project in a timely manner. The financial requirements are $1,000,000 of Liquidity and $3,000,000 of Net Worth for each O’Charley’s that you wish to develop.
If I don't meet the financial criteria to become a franchisee, can I partner with someone who does?
Yes, you must supply us with an application and personal financial statement for each member of your potential franchise group.
Does O’Charley’s provide financing for restaurant development?
No, O’Charley’s does not provide financing. However, we are listed as an approved franchise offering on the Franchise Registry, www.franchiseregistry.com, which will expedite approval of a qualified loan application with a SBA lender.
What do I receive for being an O’Charley’s franchisee?
A strong brand name known for over 40 years
- Rights to open and operate a O’Charley’s restaurant
- Initial and ongoing training in all aspects of running the business
- Local area marketing and collateral support
- Business development consultation and field support
- Ongoing research and development
- Peer interaction at owner's conferences and regional meetings
- Architectural prototype plans and restaurant layout design support
- Proprietary products and volume pricing
- ...and much more
Do I have to work in my restaurant?
No, but we are not looking for absentee owners. If you have prior restaurant management experience, you may complete training to act as the general manager. If you are not planning to work in the restaurant full time, we will require you to hire an experienced casual dine restaurant manager to operate your O’Charley’s.
How much money can I make?
We encourage our prospective franchisees to conduct significant due diligence during the discovery process and contact existing franchisees with questions on marketing, finances, sales volumes, operations, etc. The amount of profit or loss is dependent on a number of factors, including the ability of the franchisee to manage the business, drive sales volume, and control operating costs. In addition, we disclose in Item 19 – Financial Representation in our FDD to aid in your due diligence of the franchise opportunity.
How do I know if a O’Charley’s franchise is right for me?
Like owning and running any business, a O’Charley’s franchise is not for everyone. You must be willing to work long hours, be comfortable with such areas as personnel management, financial management, marketing, and business development. Having strong communication, motivation, and customer service skills is also very important in this business. For the right individual or entity, O’Charley’s can be a very rewarding business opportunity.
Does O’Charley’s provide demographic data for my potential development area?
Yes, although we rely in part on your knowledge of the area you wish to develop, we will provide you with demographics and other data on sites that you will present to us for evaluation and approval.
What kind of training will I receive?
Each potential franchisee and his or her manager candidates will attend training in a certified training restaurant, complete our comprehensive management-training program and be certified as "Trained" before opening and operating a O’Charley’s franchise. This in-depth course will familiarize you and your managers with every aspect of O’Charley’s proven business systems
Will I receive opening assistance and ongoing support?
Yes, after signing the franchise agreement and paying the franchise fee, you will immediately begin receiving assistance from the O’Charley’s' design & construction, training and operations departments. Prior to and upon opening, you will receive on-site assistance to training your hourly employees. Throughout the course of your business operation, you will receive periodic assistance from our operations department. Your assigned franchise business consultant will visit your restaurant for on-site consultation and quality assurance evaluations.
Who will coordinate my grand opening?
Will O’Charley’s provide marketing support? Your O’Charley’s Franchise Consultant and a O’Charley’s Marketing Rep will help you plan & manage your grand opening, as well as provide materials and programs designed to make the grand opening a success. Marketing campaigns, in store POP, menus and advertising material such as TV, radio, print ads, etc are developed and made available to O’Charley’s franchisee to purchase for use in your market area.