Do you want to open a restaurant business by buying Long John Silver franchise? If YES, here is how much it cost to open a Long John Silver franchise successfully. If you are looking towards opening a Long John Silver Franchise, it will be nice for you to have a of what the company represents before going ahead to enquire about the opening their franchise in your location.
Long John Silver’s Franchising LLC started operations in 1969 and they began selling franchise in 1969. They have their corporate headquarters at Louisville, Kentucky and presently they have an estimated 900 franchise units in operation. Long John Silver’s franchise chain specializes in serving fresh and delicious seafood as well as chicken, combos, bowls, and sides.
Long John Silver’s restaurant franchise provides fine opportunities to bring the joy of the sea to everyone on land. The idea to open a Long John Silver’s seafood restaurant franchise came in 1969. And since then the chain has been attracting new visitors due to high speed of service, affordable prices, quality seafood and customer satisfaction.
If you’d like to know how to start a Long John Silver’s franchise, read the investment information, including Long John Silver’s franchise fees, cost and profit details.
Financial Investment Requirement to Open a Long John Silver Franchise
Long John Silver’s total franchise fee is up to $20,000, with a total initial investment range of $109,250 to $1,612,500. Here are areas where you are expected to spend money and the cost associated with it;
- Real Estate – Varies
- Construction Costs – $20,000 – $900,000
- Furniture, Fixtures & Equipment – $35,000 – $300,000
- Signage/ Awnings – $15,000 – $75,000
- Computer Equipment – $6,500 – $28,000
- Initial Franchise Fee – $10,000 – $20,000
- Training Expenses – $6,000 – $25,000
- Start-Up Inventory – $3,000 – $20,000
- Pre-Opening and Opening Advertising Fee – $0 – $12,000
- Security Deposit, Utilities Deposits, Licenses and Other Prepaid Expenses – $3,000 – $30,000
- Support Services Agreement One-Time Charge – $750 – $2,500
- Additional Funds – 3 month – $10,000 – $200,000
- ESTIMATED TOTAL* (excluding real estate costs) – $109,250 – $1,612,500
- Steps on How to Open a Long John Silver Franchise
- 1. Ensure You Have Adequate Capitalization.
- 2. Appraise the Investment Required for a Restaurant Franchise.
- 3. Evaluate Your Prior Experience and Strengths.
- 4. Assess Market Availability.
- 5. Submit Your Application.
- 6. Receive Approval & Opening Your Long John Silver’s Franchise.
ESTIMATED TOTAL* (excluding real estate costs) – $109,250 – $1,612,500
- Royalty – 5% of gross receipts for Traditional Restaurants and Co-Brand Restaurants; 2.5% of gross receipts for Express Restaurants. (The royalty for Traditional Restaurants is subject to reduced royalties for franchisees that qualify for the 2019 Standard Incentive Program or 2019 Veterans Incentive Program.)
- Advertising – 5% of gross receipts for Traditional Restaurants and Co-Brand Restaurants; 1% of gross receipts for Express Restaurants.
- Cost of Testing Products and Equipment – The franchisor’s actual costs.
- Transfer – $2,000 per Franchise Agreement transferred. Cost varies if transferring multiple Franchise Agreements.
- Audit – Costs and expenses of audit, and interest of (i) the maximum permitted by Kentucky law or (ii) 1.5% per month from the due date until paid on any understated or underpaid amount, if understatement or underpayment is 3% or more.
- Late Fee – The lesser of (i) the maximum permitted by Kentucky law or (ii) 1.5% per month from the due date until paid.
- Indemnification – Will vary.
- Attorney’s Fees and Costs – The franchisor’s actual costs.
- Liquidated Damages – Amount equal to the gross receipts for the 12 month period immediately preceding the termination or breach multiplied by a factor equal to 2 times the royalty rate.
- Insurance Premiums – Will vary.
- Support Services Agreement Fees – $1,800-$2,400 annual charges for Traditional Restaurants and Co-Brand Restaurants; $1,140-$1,440 annual charges for Express Restaurants.
- Food Safety Audits – The franchisor may cause a third party vendor to conduct Food Safety Audits of the Restaurant. The franchisor currently does not charge franchisees any fees for the first assessment, but they will be required to pay for reassessments after a failure and in the case of a refused entry.
- Voice of the Customer – $288-$325 annual charges per restaurant.
If you are Satisfied with the Cost; Here is how you can go about opening this franchise?
Steps on How to Open a Long John Silver Franchise
1. Ensure You Have Adequate Capitalization.
In order to open a Long John Silver’s seafood restaurant franchise, you must have a net worth of more than $500,000.
2. Appraise the Investment Required for a Restaurant Franchise.
You will need to consider real estate costs, the cost of equipment and signs, the cost of licenses and permits, uniforms, insurance, etc.
3. Evaluate Your Prior Experience and Strengths.
You should thoroughly evaluate your prior business experience before applying to become a Long John Silver’s QSR franchise owner.
4. Assess Market Availability.
You have to see if there are available markets in your location before proceeding with the franchise application.
5. Submit Your Application.
Your application will be reviewed by the Long John Silver’s franchise team. You will be emailed a confirmation receipt upon reception of your online application, where we will additionally provide the contact details of the franchise owner.
6. Receive Approval & Opening Your Long John Silver’s Franchise.
You will receive franchise approval once your financial and background checks are completed. Approval will only be given to candidates who meet all the requirements of franchise owners.