About FOSTER'S FRANCHISE CONCEPTS Franchise
Foster's Franchise Concepts is a franchise brand that has been offering opportunities since 2005, backed by its parent entity Zeuss, LC.
The company operates within the food service and restaurant industry, bringing a distinctive dining concept to local markets through its franchise network.
The franchise fee is $40,000.
FOSTER'S FRANCHISE CONCEPTS Franchise Cost & Fees
Minimum Investment
$172K
Average Investment
$355K
Maximum Investment
$539K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 3% of Gross Sales | National brand fund |
| Total Investment Range | $171,800 – $538,600 | Includes build-out, inventory, working capital |
The investment range of $172K–$539K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (Up to 3% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $40,000 | $40,000 |
| Travel, lodging and meals for initial training (per person) | $1,300 | $1,600 |
| Prepaid rent and security deposit | $5,000 | $20,000 |
| Leasehold improvements | $35,000 | $300,000 |
| Fixtures and signage | $15,000 | $25,000 |
| Furniture | $8,000 | $18,000 |
| Equipment | $35,000 | $65,000 |
| POS and back office computer system | $0 | $2,500 |
| Grand opening advertising | $2,000 | $3,000 |
| Initial inventory | $5,000 | $8,000 |
| Utility deposits | $500 | $1,500 |
| Professional fees (lawyer, accountant, etc.) | $2,000 | $5,000 |
| Supplies (office supplies, stationery, business cards, etc.) (for 1st 3-6 months) | $1,000 | $3,000 |
| Business licenses, permits, etc. (for 1st year) | $1,000 | $3,000 |
| Insurance (premium for 1st year) | $1,000 | $3,000 |
| Additional funds (for 1st 3-6 months) | $20,000 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 25% of then-current initial franchise fee (franchise); $2,500 per undeveloped franchise (area grant) |
| Renewal Fee | 10% of our then-current initial franchise fee |
| Technology Fee | POS system monthly maintenance fee: $500-$550 per year; On-line computer network fee: $60-$120 per month; Proprietary software fee: Reasonable fee; Website listing: Reasonable fee |
| Audit Fee | Cost of examination or audit (if understatement by 3% or more) |
| Training fee (additional people/replacement manager) | Currently $200 per person per day |
| Remedial or follow-up training | Currently $200 per person per day, plus our out-of-pocket expenses |
| Field assistance | Currently $200 per person per day, plus our out-of-pocket expenses |
| Annual conference | Proportionate share of our out-of-pocket expenses |
| Replacement manual | Currently up to $100 per replacement manual |
| Hardware and software upgrades | Actual cost |
| Unauthorized product or service fee | $250 per day |
| Sample testing fee | Actual cost |
| Interest on past due amounts | Lesser of 10% per annum or highest rate allowed by law |
| Late fee | $100 |
| Management (on death or disability) | To be determined under circumstances |
| Management (other reason) | 10% of Gross Sales, plus our direct out-of-pocket costs and expenses |
| Insurance coverage | Cost of insurance, interest on monies advanced, administrative costs |
| Solicitation fee | 200% of person’s annual salary |
| Deficiencies | Our actual costs |
| Reimbursements and penalty fees | Will vary under circumstances |
| Costs and attorneys’ fees | Our actual costs |
| Indemnification | Our actual costs |
| Liquidated damages | Amount equal to average monthly continuing franchise fees paid during the 12 months of operation preceding termination, times the lesser of 24 or the number of months remaining in the franchise term |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Up to 7 days of classroom and on-the-job training in Haymarket, VA, and up to 7 days of on-site training before and during opening. An advanced session of about 3 days may be provided 90-120 days after opening. Total 96 hours (23 classroom, 73 on-the-job). |
| Classroom Training | 23 |
| On-the-Job Training | 73 |
| Training Location | Haymarket, VA and your site |
| Additional Training | Annual regional or national conferences; refresher or follow-up training as designated by franchisor. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | About 30,000 to 50,000 population |
| Description | Defined by 5-digit ZIP codes, county or city boundaries, a radius, or fixed geographical boundaries such as rivers, streets or highways. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Successive 10-year terms |
| Renewal Fee | 10% of our then-current initial franchise fee |
| Renewal Conditions | Notice, solvency, right to remain in possession of premises, no ceasing to do business, no danger to public, no repeated defaults or misrepresentations to us, timely submission of reports, no felonies or illegal conduct, signing of the then-current agreement, renewal fee, remodeling (if we require). |
| Transfer Fee | 25% of our then-current initial franchise fee |
| Transfer Conditions | Substantial compliance with franchise agreement; transferee qualification; payments current; general release; written transfer agreement; transferee’s signing of then-current franchise agreement; transferee’s agreement to complete training; transfer fee; no exercise of our right of first refusal; equipment and premises updated to our then-current specifications; our consent to material terms of transfer; and subordination of obligations of transferee to transferor. |
| Termination for Cause | Franchisor may terminate for cause, including automatic termination events (e.g., bankruptcy, foreclosure) or termination on notice for various defaults (e.g., insolvency, ceasing operations, criminal conviction, repeated payment failures, material false statements, unauthorized transfers, non-competition violations, disclosure of confidential information, tax liens, failure to open on schedule, underpayment by 5% or more, termination of other franchises, anti-terrorism law violations). |
| Non-Compete Period | 2 years after expiration or termination |
| Non-Compete Details | During the term of the franchise, no involvement in competitive business anywhere in the U.S. After termination/expiration, no diversion of personnel for 1 year, and no involvement in competitive business for 2 years within the territory, within the territory of any other FOSTER’S GRILLE restaurant, or within a 25-mile radius of any FOSTER’S GRILLE restaurant. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If an individual, you and your original manager, or only your original manager, must attend and successfully complete initial training and personally manage the business at all times. If a legal entity, your managing shareholder, partner, or member and your original manager, or only your original manager, must attend and successfully complete initial training and personally manage the business at all times. Replacement managers must also complete initial training. |
| Required Suppliers | Franchisees must subscribe to a designated online computer network and obtain products/services such as the electronic point-of-sale cash register system, specified food and beverage products, specified equipment and supplies, vending machines, safe, security/alarm system, signs, promotional products, paper products, uniforms, pest control services, and cleaning services from approved suppliers. |
| Supply Restrictions | The franchisor may modify the list of approved suppliers and may approve a single supplier for any item or items. The franchisor or its affiliates may be an exclusive or non-exclusive designated supplier and may offer to sell products/services at the franchisee's option. The franchisor receives promotional and other marketing support/payments from some approved suppliers. |
| Franchisor Revenue from Suppliers | $52,278 (18% of total revenue) in 2022 from rebates paid by approved suppliers. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Neither we nor any affiliate offers direct or indirect financing or guarantees your notes, leases or obligations. |
FOSTER'S FRANCHISE CONCEPTS Franchise Earnings — Item 19
Average Revenue
$1.0M
Median Revenue
$1.0M
Revenue Range
$682K – $1.5M
Sample Size
11 units
Past financial performance does not guarantee future results. Individual results will vary.
FOSTER'S FRANCHISE CONCEPTS Litigation & Risk Flags
Clean Litigation RecordFOSTER'S FRANCHISE CONCEPTS has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
FOSTER'S FRANCHISE CONCEPTS System Growth
Total Units
12
Franchised
5
Company-Owned
7
FOSTER'S FRANCHISE CONCEPTS currently operates 5 franchised locations and 7 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 1 | 11 |
| 2021 | 0 | 0 | 11 |
| 2022 | 1 | 0 | 12 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$293K
Net Income
$91K
Total Assets
$240K
Audited by CSTGROUP, CPAS, PC for year ending December 31.
FOSTER'S FRANCHISE CONCEPTS Franchise — FAQ
The total investment to open a FOSTER'S FRANCHISE CONCEPTS franchise ranges from $171,800 to $538,600, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
FOSTER'S FRANCHISE CONCEPTS charges a royalty fee of 5% of Gross Sales of gross sales, plus a Up to 3% of Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the FOSTER'S FRANCHISE CONCEPTS Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from FOSTER'S FRANCHISE CONCEPTS to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, FOSTER'S FRANCHISE CONCEPTS franchise owners report average revenue of $1.0M and median revenue of $1.0M. This is based on a sample of 11 units. Past performance does not guarantee future results.
FOSTER'S FRANCHISE CONCEPTS has been franchising since 2005. The FDD shows an investment range of $171,800-$538,600, a 5% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $40,000 and the total investment ranges from $171,800 to $538,600 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from FOSTER'S FRANCHISE CONCEPTS and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with FOSTER'S FRANCHISE CONCEPTS or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com