About Frank & Furter's Franchise
Frank and Furter's is a hot dog and sausage restaurant franchise that began offering franchise opportunities in 2024 through its parent company Franknfurters, Inc.
The brand puts a creative spin on the classic American hot dog, featuring gourmet toppings, specialty sausages, and a fun, nostalgic dining experience.
The franchise fee is $35,000.
Frank & Furter's Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 6% of weekly Net Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1.5% of weekly Net Sales (Advertising Fund Contribution) + The greater of (i) $2,500 per month or (ii) 3% of Net Sales (Local Marketing Expenditure) | National brand fund |
| Total Investment Range | $342,150 – $815,300 | Includes build-out, inventory, working capital |
The investment range of $342K–$815K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of weekly Net Sales) and marketing fee (1.5% of weekly Net Sales (Advertising Fund Contribution) + The greater of (i) $2,500 per month or (ii) 3% of Net Sales (Local Marketing Expenditure)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Architect’s Fees | $3,000 | $15,000 |
| Leasehold Improvements | $125,000 | $350,000 |
| Furniture and Equipment | $20,000 | $60,000 |
| Professional Fees | $2,500 | $7,500 |
| Computer Hardware and Software | $4,500 | $6,500 |
| Signage | $6,000 | $20,000 |
| Restaurant Design Fee | $750 | $750 |
| Technology Fees (3 months) | $5,100 | $5,100 |
| Additional Software Licenses | $750 | $750 |
| Business and Operating Permits | $4,500 | $10,000 |
| Insurance | $5,000 | $10,000 |
| Base Rent (3 months) | $2,500 | $40,000 |
| Expenses While Attending Training | $2,550 | $14,700 |
| Grand Opening Marketing | $15,000 | $15,000 |
| Opening Inventory | $15,000 | $20,000 |
| Equipment | $65,000 | $150,000 |
| Security/Utility deposits and Fees | $5,000 | $15,000 |
| Additional funds (3 Months) | $25,000 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | 25% of then-current Initial Franchise Fee |
| Technology Fee | $1,700 per month |
| Audit Fee | Our costs, fees, and expenses if the audit reveals an understatement. |
| Management Fee | The greater of (i) two times the salary paid to the individual(s) assigned by us to operate the Restaurant, or (ii) 10% of the Restaurant’s monthly Net Sales; plus, expenses for travel, lodging, meals, and all other expenses. |
| Default Interest | Lesser of (i) the highest commercial contract interest rate permitted by state law, and (ii) 15% per annum. |
| Document Late Charge | $250 per day per late document. |
| Draft Draw Charge | $250 per returned draft. |
| Non-Compliance Fee | $2,500 per incidence of non-compliance |
| Termination Fee | 50% of the Initial Franchise Fee plus estimated Royalty Fees (6%) for the remainder of Term. |
| Attorneys’ Fees and Costs | Actual fees and costs. |
| Taxes | Actual cost of applicable taxes. |
| Non-Compete Violation Fee | $35,000 plus 9% of Net Sales from all products and services sold by or from the Restaurant, whether for on-site or off-site consumption. |
| Testing | Our reasonable cost of inspection and the actual cost of the test, not to exceed $10,000. |
| Premiums and Other Amounts Paid by us if You Fail to Purchase Required Insurance | You must reimburse our actual costs. |
| Indemnification of us | Actual amount of all claims, obligations, and damages arising out of the Restaurant’s operation, employment matters, the business you conduct under the Franchise Agreement, and your breach of the Franchise Agreement. |
| Currency | Any conversion fees that we incur. |
| De-identification | All amounts incurred by us |
| Customer Complaint Reimbursement | Costs we incur to resolve complaints for your customers if you fail to reasonably satisfy such complaints |
| Extension Fee | $2,500 per month for each month for which an extension to open a Restaurant is sought. |
| Insufficient Funds Fee | $250 per instance |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 14 days |
| Classroom Training | 34 |
| On-the-Job Training | 97 |
| Training Location | Scottsdale, Arizona, a certified training store, or at such other location(s) as we may designate |
| Additional Training | We may require you and your personnel to attend and complete satisfactorily various training courses that we periodically choose to provide at the times and locations that we designate, as well as periodic conventions, regional meetings, and conferences that we specify including franchise meetings. We may also impose a charge for your failure to attend such programs, courses, meetings, and conference calls. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Area |
| Exclusive Territory | No |
| Territory Size | geographic area encompassing between ½ of one mile and one mile radius from the front door of your Restaurant |
| Description | The Protected Area granted to you will generally be a geographic area encompassing between ½ of one mile and one mile radius from the front door of your Restaurant (the “Protected Area”) although the Protected Area may, in our discretion, be reduced, in certain high density population areas (“High-Density Areas”) and/or be limited to a Non-Traditional Location (defined as an airport terminal, train station, university, stadium, etc.) Currently, we consider New York City (including boroughs), Los Angeles (including suburbs), San Francisco, Chicago, Boston, Miami, Denver, and Honolulu to be High-Density Areas. We reserve the right to add additional High-Density Areas in the future. The factors that we will consider in establishing a proposed Protected Area include location, adjacent economic profiles, captive population, accessibility, competition, and proximity to major retail and business activity. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | one term of ten (10) years and two consecutive five (5) year terms |
| Renewal Fee | 25% of then-current Initial Franchise Fee |
| Renewal Conditions | Franchisee, if not in breach of any agreement with Franchisor, must notify Franchisor in writing of its intention to renew at least six months (but not more than 12 months) before the end of each then current Term (Initial or Renewal), and at its expense, remodel and update the Restaurant to Franchisor’s then current standards. Franchisee must sign the then-current form of franchise agreement for new franchisees (with a five-year term) and a general release of Franchisor and its Affiliates, and attend any required training programs or refresher courses. |
| Transfer Fee | $10,000 |
| Transfer Conditions | Franchisee must advise Franchisor in writing of any proposed Transfer, submit a franchise application for the proposed transferee, copies of all contracts and information requested by Franchisor, and pay a $10,000 Transfer Fee. The proposed transferee must meet Franchisor's then-current standards, have sufficient business experience and financial resources, and not be a competitor. Franchisee must have paid all amounts owed and not be in violation of the agreement. If financing is involved, it must be subordinate to Franchisor's obligations. Franchisee must correct any existing deficiencies in the Restaurant and sign a general release. The proposed transferee must complete initial training and sign required license/service agreements. |
| Termination for Cause | Franchisor may terminate the Franchise Agreement without an opportunity to cure upon the occurrence of specific events, including but not limited to: failure to locate and secure an approved site within 12 months, failure to open the Restaurant within the prescribed time, abandonment of the Restaurant for three or more consecutive days, insolvency, material breach of covenants (Section 18), material misrepresentation or omission in information provided to Franchisor, knowingly falsifying reports, failure to disclose material facts, an incident involving an employee where adequate due diligence/background checks were not conducted, continued operation posing imminent danger to public health/safety, loss of right to occupy premises, conviction of a felony or crime involving moral turpitude by Operating Principal/General Manager/owners, failure of Operating Principal/General Manager/management personnel to complete initial training, blocking of assets under terrorist activity laws, interference with Franchisor's relations with other franchisees or third parties, material breach of representations/warranties, failure to maintain required insurance, or two or more notices of default within a 12-month period followed by another default. |
| Non-Compete Period | During the term of the Agreement and for a "Restricted Period" following expiration or earlier termination. The Restricted Period is two (2) years, or one (1) year if a court deems two years unenforceable, or six (6) months if a court deems one year unenforceable. |
| Non-Compete Details | During the term of the Agreement and the Restricted Period, franchisee and owners may not directly or indirectly own, maintain, operate, engage in, franchise or license, advise, help, make loans to, or have any direct or indirect controlling or non-controlling interest in, or perform services as a partner, director, officer, manager, employee, consultant, representative, or agent in any Competing Business. They also may not knowingly employ or solicit employees of Franchisor or other franchisees, or divert business to a Competing Business. During the term, there is no geographical limitation. During the Restricted Period, these restrictions apply at the Premises, within the Protected Area, within a 5-mile radius of the outer boundaries of the Protected Area, and within 5 miles of any other Restaurant in operation or under construction. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If you sign the Franchise Agreement individually you must meet the qualifications of an Operating Principal. If Franchisee is a corporation, partnership, or limited liability company, you must designate an individual to serve as your Operating Principal. The Operating Principal must: (i) devote full time and best efforts to the supervision and conduct of the Restaurants which you developed and operate; (ii) successfully complete the Initial Training Program; (iii) own a majority of the equity interest in your corporation or limited liability company during the entire period he serves as Operating Principal; (iv) execute the Franchise Agreement and be individually bound by all your obligations under those agreements; and (v) be approved by us. |
| Required Suppliers | You must purchase Approved Products only from us or a third party designated and licensed by us to prepare and sell such products (“Designated Suppliers”) and purchase from manufacturers, distributors, vendors and suppliers approved by us (“Approved Suppliers”) all other goods, products, materials and supplies (collectively, “Goods”), as well as advertising materials, furniture, fixtures, equipment, menus, forms, paper and plastic products, packaging or other materials (collectively, “Materials”) that meet the standards and specifications promulgated by us from time to time. |
| Supply Restrictions | We may require you to use only certain brands (collectively, “Approved Brands”) and prohibit you from using other brands. |
| Franchisor Revenue from Suppliers | We and our affiliates, from time to time, may receive payments from suppliers or vendors (including Designated Suppliers and/or Approved Suppliers) on account of such suppliers’ dealings with you and other Restaurant franchisees, and we may use any amounts received without restriction and for any purpose we and our affiliates deem appropriate. We have not collected any revenue from Designated Suppliers or Approved Suppliers as of the Effective Date of this FDD. If we do collect such revenue from these parties, the amount paid to us by Designated Suppliers and/or Approved Suppliers will be, on a case by case basis, a percentage of sales to you and other franchisees or a flat fee. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer any direct or indirect financing or financing. We do not guarantee your note, lease, or obligation. |
Frank & Furter's Franchise Earnings — Item 19
Frank & Furter's does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Frank & Furter's Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Frank & Furter's System Growth
Frank & Furter's currently operates 0 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 |
| 2023 | 0 | 0 | 0 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
Audited by CliftonLarsonAllen LLP for year ending December 31.
Frank & Furter's Franchise — FAQ
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