About TGI Fridays Franchise
TGI Fridays is a full-service casual theme restaurant franchise featuring a specialized menu and full bar service.
Franchisees operate sit-down restaurants offering a wide selection of freshly prepared popular foods and beverages, including appetizers, entrees, desserts, and a full range of alcoholic and non-alcoholic drinks.
The restaurants serve well-trained, friendly employees in a relaxing setting and target adults primarily between the ages of 21 and 49.
TGI Fridays Franchise Cost & Fees
Minimum Investment
$2.6M
Average Investment
$3.2M
Maximum Investment
$3.8M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | 4% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 5% of Gross Sales (APO); currently 3.75% National Advertising Fund | National brand fund |
| Total Investment Range | $2,596,000 – $3,835,000 | Includes build-out, inventory, working capital |
The investment range of $2.6M–$3.8M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4% of Gross Sales) and marketing fee (Up to 5% of Gross Sales (APO); currently 3.75% National Advertising Fund) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Furniture, Equipment & Décor | $825,000 | $1,000,000 |
| Computer Systems | $83,500 | $100,000 |
| Opening Inventory | $35,000 | $60,000 |
| Hiring Expenses; Training | $65,000 | $200,000 |
| Liquor License | $0 | $0 |
| Building & Improvements | $1,300,000 | $1,585,000 |
| Site Improvements | $100,000 | $350,000 |
| Developmental Costs | $65,000 | $100,000 |
| Insurance (3 months) | $12,500 | $25,000 |
| Miscellaneous Costs | $10,000 | $100,000 |
| Additional Funds (3 months) | $50,000 | $100,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 or such greater amount as necessary to reimburse out-of-pocket expenses |
| Renewal Fee | 50% of then-current Initial Franchise Fee for first successor term; 30% for second successor term |
| Technology Fee | $1,260 per quarter (I.T. Service and Support Fee) |
| Audit Fee | Deficiency in Royalty Fees, advertising contributions and other amounts owed, plus interest |
| Digital Marketing Fee | Currently 0% of Gross Sales (determined annually) |
| Kitchen Management | $240 annually per Restaurant |
| AirWatch (MDM) | $65 one-time per device + $27 annual support fee |
| Late Fees | $500 per delinquent payment |
| Non-compliance Fee | 1% of Gross Sales |
| Manager Training - Leadership That Rocks | $600 plus airfare and incidentals per trainee |
| Manager Training - Restaurant Management Essentials | $500 per trainee |
| Manager Transfer Fee | $25,000 |
| Training Fee - NSO Team | $78,000 - $83,500 |
| Guest Relations Program | $6 per incident |
| Medallia Fee | $25 monthly |
| Relocation | $5,000 |
| Securities Offerings | $15,000 |
| Background Investigation Fee (Transferees) | $10,000 maximum |
| Royalty Increase Alternative for Remodel Default | 2.5% of Gross Sales |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 8-week in-store Management Training Program (Restaurant Management Essentials) plus 3-day Leadership That Rocks seminar; 2-day Owner's Orientation Program |
| Classroom Training | 72 hours (Management Training Program) |
| On-the-Job Training | 460 hours (Management Training Program) |
| Training Location | Center of Excellence Restaurants in the field; Dallas, Texas (Owner's Orientation); Designated facility in the market (Leadership That Rocks) |
| Additional Training | Multi-Unit Manager Program (47.5 hours classroom, 120 hours on-the-job); Kitchen Manager Essentials and Impact General Manager Essentials self-paced programs; NSO Manager's orientation seminar (2 days); annual meetings and conferences required |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Defined geographic area described by boundary streets, highways, counties, states or other recognizable demarcations |
| Description | Under both the Development Agreement and Franchise Agreement, you will not receive an exclusive territory. Under the Development Agreement, the franchisor will not operate or license Fridays restaurants in your Territory during the term, subject to numerous reserved rights including non-traditional locations, airports, stadiums, military facilities, etc. The Franchise Agreement does not give any exclusive rights. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two successor terms of 5 years each |
| Renewal Fee | 50% of then-current Initial Franchise Fee for first successor term; 30% for second successor term |
| Renewal Conditions | Give timely notice; be in good standing; not be in default; meet then-current financial requirements; remodel; satisfy training requirements; have site approved; maintain licenses and permits; sign general release; sign new Franchise Agreement which may have substantially different terms |
| Transfer Fee | $5,000 or such greater amount as necessary to reimburse out-of-pocket expenses |
| Transfer Conditions | Qualified transferee; reasonable sales price; payment of amounts due; no default; signed release; transferee completes training; renovation of Restaurant; payment of transfer fee and background investigation fees; Franchise Agreement signed |
| Termination for Cause | Automatic termination for non-curable defaults (insolvency, bankruptcy, unauthorized transfer, felony conviction, etc.); 10 days to cure monetary defaults; 30 days to cure other defaults |
| Non-Compete Period | 2 years |
| Non-Compete Details | No activity in any restaurant business offering same or similar products as Fridays for a continuous 2-year period within your Territory, within 3 miles of its border, and within 3 miles of any then-existing Fridays Restaurant. Liquidated damages for violation equal to then-current Initial Franchise Fee plus 8% of gross sales of competing business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | We do not require you to participate personally in the development or operation of the Restaurant, except that your Representative (who must own at least a 20% equity interest) must be fully authorized to act on your behalf. You must designate an Operating Principal who must devote full-time and reasonable efforts to supervising the operation of the Restaurant. |
| Required Suppliers | Franchisees must obtain all inventory, supplies, products and materials from approved suppliers only. TGIF Inc. is one of the suppliers of furniture, kitchen equipment and décor. The cost of required purchases represents approximately 90% of total cost of all purchases and leases. |
| Supply Restrictions | Must purchase from approved supplier list. Franchisees may request approval of alternative suppliers by submitting written request; review typically completed in 60 days. |
| Franchisor Revenue from Suppliers | For fiscal year ended December 27, 2021, TGIF Inc. earned $4,056,847 in revenues (approximately 0.74% of its total revenues of $547,306,127.30) from required purchases and leases by franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
TGI Fridays Franchise Earnings — Item 19
Average Revenue
$2.7M
Median Revenue
$2.5M
Revenue Range
$1.1M – $5.9M
Sample Size
141 units
Past financial performance does not guarantee future results. Individual results will vary.
TGI Fridays Litigation & Risk Flags
Clean Litigation RecordTGI Fridays 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.
TGI Fridays System Growth
Total Units
308
Franchised
152
Company-Owned
156
TGI Fridays currently operates 152 franchised locations and 156 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 25 | 244 |
| 2020 | 0 | 76 | 168 |
| 2021 | 0 | 16 | 152 |
Transfers: 7 | Closures: 16
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
TGI Fridays Franchise — FAQ
The total investment to open a TGI Fridays franchise ranges from $2,596,000 to $3,835,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $50,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
TGI Fridays charges a royalty fee of 4% of Gross Sales of gross sales, plus a Up to 5% of Gross Sales (APO); currently 3.75% National Advertising Fund contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the TGI Fridays 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 TGI Fridays to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, TGI Fridays franchise owners report average revenue of $2.7M and median revenue of $2.5M. This is based on a sample of 141 units. Past performance does not guarantee future results.
TGI Fridays has been franchising since 1978. The FDD shows an investment range of $2,596,000-$3,835,000, a 4% 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 $50,000 and the total investment ranges from $2,596,000 to $3,835,000 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 TGI Fridays and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with TGI Fridays or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com