About The Local Fry Franchise
The Local Fry is a fast casual restaurant franchise built around gourmet french fries and creative comfort food.
The brand takes a humble menu item and elevates it with premium toppings, house made sauces, and inventive flavor combinations that transform fries into a full meal experience.
The Local Fry has been franchising since 2023.
The Local Fry Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 6% of Adjusted Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 5% of Adjusted Gross Sales divided among the Ad Fund, any Regional Marketing Fund (or, any Regional Co-op) and Local Store Marketing | National brand fund |
| Total Investment Range | $449,000 – $703,000 | Includes build-out, inventory, working capital |
The investment range of $449K–$703K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Adjusted Gross Sales) and marketing fee (Up to 5% of Adjusted Gross Sales divided among the Ad Fund, any Regional Marketing Fund (or, any Regional Co-op) and Local Store Marketing) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Real property lease | $4,500 | $7,500 |
| Leasehold Improvements | $300,000 | $450,000 |
| Equipment | $50,000 | $75,000 |
| Architectural Design | $20,000 | $35,000 |
| POS System | $7,000 | $13,000 |
| Opening Inventory and Supplies | $8,000 | $16,000 |
| Grand Opening Advertising | $3,000 | $7,500 |
| Insurance | $2,000 | $7,000 |
| Training | $2,500 | $5,000 |
| Business Licenses and legal costs | $2,000 | $6,500 |
| Utility Deposits | $1,000 | $4,000 |
| Additional Funds (three months) | $15,000 | $45,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of then-current initial franchise fee. No fee if transfer is for less than 10% interest in franchisee. |
| Renewal Fee | 50% of the then-current franchise fee |
| Audit Fee | All costs and expenses associated with the audit, reasonable accounting and legal costs. |
| Extension Fee (Development Agreement) | $2,000 for each months granted |
| Interest on Overdue Amounts | 1.5% per month on the underpayment |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Canceled Check | $100 |
| Supplier Testing | $1,000 |
| Indemnity | Will vary under circumstances |
| Non-compliance Fee | $1,000 for second violation in 12-month period; $2,000 for third and $4,000 for each violation thereafter |
| On-Site Evaluation | Will vary under circumstances |
| Additional training | Our per-diem charges, plus our out-of-pocket costs |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | seven week period |
| Classroom Training | 10 hours |
| On-the-Job Training | 250 hours |
| Training Location | Baltimore, Maryland |
| Additional Training | We may require that any or all of the Highly Trained Personnel attend refresher courses, seminars, and other training programs periodically. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | a radius (of approximately 3 miles), a metes and bounds description around the Restaurant, or a group of zip codes. |
| Description | The Territory may be stated as a radius (of approximately 3 miles), a metes and bounds description around the Restaurant, or a group of zip codes. The Franchisor will designate the Territory after the franchisee proposes, and the Franchisor accepts, the Accepted Location. The continuation of territorial exclusivity does not depend on sales volume, market penetration, or other contingency. However, if the franchisee defaults, the Franchisor reserves the right to modify or eliminate the Territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years in Franchise Agreement |
| Renewal Term | Two additional 5-year terms in Franchise Agreement |
| Renewal Fee | 50% of the then-current franchise fee for the first Renewal Term. |
| Renewal Conditions | For Franchise Agreement, notice, release us, satisfaction of monetary obligations, compliance with Franchise Agreement, release, sign new Franchise Agreement, and others. By use of the term “renewal,” we mean the continuation of your franchise relationship under potentially vastly different terms. You may be asked to sign a contract with materially different terms and conditions from your original contract with different boundaries of the Territory and different Royalty Fees. For Development Schedule extensions only, you must request an extension 14 calendar days before the deadline date, provide the number of full months of extensions requested and pay us an extension fee. |
| Transfer Fee | 50% of the then-current Initial Franchise Fee |
| Transfer Conditions | Release, signature of new Franchise Agreement, release us payment of transfer fee, and others. |
| Termination for Cause | Default under Franchise Agreement, bankruptcy, abandonment, and other grounds. Under the U.S. Bankruptcy Code, we may be unable to terminate the agreement merely because you make a bankruptcy filing. |
| Non-Compete Period | two (2) years |
| Non-Compete Details | Includes a two year prohibition similar to “q” (engaging in any restaurant or sports bar business which is the same or similar to the Restaurant and others), within 15 miles of the Accepted Location, any other Restaurant then-operating under the System, or, under the Development Agreement, in or within 15 miles of the Development Area. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | We do, however, require that you or your Operating Partner devote full time, energy, and best efforts to the management of the Restaurant. The Restaurant must be under the active full-time management of either you or the Operating Partner who has successfully completed our initial training program. |
| Required Suppliers | You must buy all products, ingredients, supplies, materials, and other products used or offered for sale at the Restaurant only from suppliers... that we have approved in writing. |
| Supply Restrictions | We may limit the number of approved suppliers with whom you may deal, we may designate sources that you must use for some or all products and services, and we may refuse to approve proposals from franchisees to add new suppliers... |
| Franchisor Revenue from Suppliers | Franchisor does not currently receive revenue from suppliers. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We will not guarantee your note, lease, or other obligations. |
The Local Fry Franchise Earnings — Item 19
The Local Fry 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.
The Local Fry 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.
The Local Fry System Growth
The Local Fry currently operates 0 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 1 |
| 2021 | 0 | 0 | 1 |
| 2022 | 0 | 0 | 1 |
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)
Audited by Kofi Agyenim Boateng, CPA for year ending December 31.
The Local Fry Franchise — FAQ
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