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How Much Does It Cost to Open Panini Kabob Grill Franchise?

If you are looking towards opening a Panini Kabob Grill Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location. The first Panini Kabob Grill (formerly Panini Café) opened in 1997. The second restaurant opened in 2007 and started the rapid growth in sales and restaurant locations.

The most recent location opened in Mission Viejo and this has had the largest initial sales growth of any of the previous restaurants. Panini Kabob Grill serves breakfast, lunch and dinner. Mike Rafipoor is the Founder and current CEO of the company and they have their corporate head office at 17835 Sky Park Cir., #H Irvine, CA 92614, USA. Panini Kabob Grill also provides franchising opportunities.

Panini Kabob Grill is a casual dining restaurant that offers Mediterranean-style cuisine made from scratch with fresh and healthy ingredients. They offer carry-out and table service. Panini Kabob Grill has a winning concept that takes Mediterranean cuisine to another level. Kabobs, together with many other Mediterranean dishes are cooked in a scratch kitchen with healthy ingredients and served in an upscale, casual dining environment.

This concept is based and driven by customer satisfaction, large portions and a competitive price point. Steering away from the overcrowded burgers and pizza market, this new healthy, fresh concept is an opportunity you don’t want to miss. Here are areas where you are expected to spend money and the cost associated with it;

Financial Investment Required to Open Panini Kabob Grill Franchise

1. Initial Investment Range: $795,000 to $1,996,050

2. Franchise Fee: $55,000

3. Royalty Fee: 5 percent of Gross Sales

Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.

Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third – party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.

  1. Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution: At least 1 percent per calendar year and the Due Date: for this is Monthly.

Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two – thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.

Centers owned by Panini Kabob Grill and its affiliates are also members of their respective local Cooperative and each company – owned Center has the same voting rights as the franchised locations within the Cooperative. If the company – owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.

  1. Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
  2. Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
  3. Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.

Please note that you must reimburse Panini Kabob Grill if it is held liable for claims arising out of your franchise operations.

  1. Insurance: Reimbursement of costs the franchisor’s out – of – pocket costs.
  2. Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date:  Due on receipt of invoice.)

Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.

  1. POS Hardware and Software: Depends upon vendor and products purchased. (Due Date:  Depends upon vendor and products purchased.)
  2. Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date:  As incurred.)

Payable to Panini Kabob Grill if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Panini Kabob Grill is required to defend your unsuccessful claim against it.

  1. Veteran Incentives: 10% off franchise fee.
  2. Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If requirements are met, franchisees can renew for one additional term of 10 years.
  3. Financial Assistance: Panini Kabob Grill! has relationships with third – party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll et al.

In Summary,

  • Initial Investment: $795,000 – $1,995,000
  • Net-worth Requirement: $5,000,000
  • Liquid Cash Requirement: $995,000
  • Ongoing Initial Franchise Fee: $55,000 – $55,000
  • Ongoing Royalty Fee: 5%
  • Ad Royalty Fee: 0.5-1%