Investment Opportunity - Q&A's
What are the costs to start up? Are there any fees I have to pay?
Initial start up costs range from $137,080 to $216,900, including the Initial Franchise Fee of $15,000. This will give you the right to your initial training, a protected territory, and access to our team who will guide you to open your Island Empanada Restaurant. We will look for candidates who have a $150,000 net worth and a minimum liquidity of $75,000.
If you are interested in a multi-unit commitment, we offer a reduced initial fee of $30,000 for three restaurants.
Do I have to be open all year and 7 days a week?
Yes but we close on major holidays.
I have some money saved, but not everything listed above - how much do I really need to open?
We look for candidates who have at least $75,000 in liquid capital available to invest and a net worth of $150,000, and keep in mind that many of our franchisees will finance the initial investment. While we do not offer financing to our franchisees, we have a 3rd party relationship with lenders who know franchising and what it takes to open a new business. We can put you in touch with them to help you with the financing needs you may have.
What is the royalty fee? Are there any other ongoing fees paid to the franchise?
The ongoing royalty fee is paid weekly and is 4% of gross sales. There is also a Brand Development Fee, which is currently 1% of gross sales (this fee can be raised to 2% in the future). Both fees are paid weekly.
What kind of training is offered as part of the investment?
Franchisees are entitled to our pre-opening and on-going support. Our initial training lasts 10 days in our affiliated restaurants plus an additional 2-3 days in your restaurant. Ongoing, we will support you with on-site visits, routine phone calls, webinars, and conferences with our commitment to help you develop Island Empanada brand in your area.
What type of location do you recommend? I think I know a great spot!
We offer territory up to a 6 mile radius around your store, including up to 250,000 people in population. To serve your customers, we suggest between 800sq ft to 1800sq ft of space but, that is getting ahead of a lot of other details. We will be available to help our owners, once signed, with evaluating real estate options and even guide you in your lease negotiations, too. We'll provide information on the equipment for your restaurant. All of this will help you be prepared for your opening.
How much money can I make?
Making money is a key factor that will influence your decision to join our team. As you may know, how profitable a restaurant is will depend a lot on the candidate's background, dedication to the business, and aptitude, as well as whether or not they are following the system. We do offer a Financial Performance Representation in our FDD, called Item 19, and this document will be disclosed to qualified candidates.
I don't know how to make empanadas - what kind of experience do I need to own an Island Empanada?
No restaurant experience is needed but rather the ability to manage a restaurant work force in a fast paced environment.