Raising Cane’s Franchise Startup Cost, Profit & Opportunities
Want to become part of a thriving global restaurant franchise brand?
Raising Cane’s franchise might be the answer you seek. This franchise opportunity specializes in quality chicken finger meals. Plus, its community of great people makes investing a worthwhile franchise venture.
Raising Cane’s business model includes a limited menu that is served fast and efficiently. In preparing this menu, it takes into account the needs of the client and caters to such professionalism and dispatch. It seeks to spread this tradition across the world.
Hence its franchise openings for interested investors from all across the world.
Founded in 1996 by Todd Graves, the Raising Cane’s franchise has grown to become one of the trusted fast food brands among clients and investors alike. This brand has succeeded in the opening over 500 restaurants across different locations. It seeks to spread out to more locations with the help of its franchisees.
What This Franchisor Seeks
The Raising Cane’s franchise wants to partner with investors having a unique set of characteristics that include believing in its vision for the future, must have had some level of operating experience and ownership of multi-unit food service with a proven track record of success.
Other qualities include having people skills. This includes values such as respect and rewarding crew members for their contributions. The franchisor requires that you must be sales driven, must love what you do, and be committed and motivated to exceed its set standards.
How Much Will You Make As A Raising Cane’s Franchisee?
This is one of the most asked questions by prospective franchisees and understandably so because everyone wants to become part of a profitable business. However, no definite figure can be given because lots of factors determine profitability. It is also logical to say that conditions aren’t uniform across all locations.
So, what exactly are these factors that determine profitability? They include local demand for your product, applicable commercial lease rates, labor cost among other things. In some locations, factors such as lease rates will determine your overall profit. Overall, higher investments should result in higher profits.
Some locations have higher lease rates than others. So, franchisees in regions with lower lease rates will tend to spend less on a lease, thereby making them more profitable as compared to those with higher leases. However, this is only one such factor and won’t entirely determine if a franchise will be more profitable or not.
Franchise Agreement
Raising Cane’s franchise agreement allows franchisees to operate its franchise for an initial term limit of 20 years.
However, after this period elapses, you have the option to renew. Certain conditions may be attached to renewal terms for franchisees. The renewal term is for 10 years.
Franchise Cost
Every prospective franchisee will want to know the cost implications for owning a Raising Cane’s franchise. The franchise cost includes the franchise fee of around $45,000. This comes with a total initial investment range starting from $768,100 to $1,937,500. This depends on the size of the franchise you seek or the number of units you want.
You’ll also need a working capital of about $90,000 to $250,000. This is in addition to a royalty fee of 5%. The royalty fee is a recurring fee and is a percentage of gross sales made within a period. There are other applicable fees which aren’t fully disclosed by the franchisor.
To get the full details on these and other requirements, you will need to go through Raising Canes’ franchise disclosure document (FDD). This is only possible after you’ve indicated an interest by filling its online application form.
You are contacted for further discussion and presented with the document containing all the terms of the franchise agreement.
You’ll need to carefully go through its content to decide if it’s the right opportunity or not. We recommend seeking legal help with interpreting the contents of the FDD.
Benefits
Raising Cane’s franchise offers several benefits to its franchisees. These are meant to increase the chances of success. Benefits come by way of training and financing. Other forms of benefits include marketing, grand opening, field, and field support among others. Training is provided to franchisees to enable them to take off smoothly.
There’s hands-on training in addition to class training which can be offered wherever the franchisee feels decides.
Most times, financing covers several areas such as the franchise fee, veteran discounts among others. Although Raising Cane’s offers financing to its franchisees, it doesn’t specify what type of financing they get. You’ll have to find this by discussing it with its customer care after you’ve been contacted for further discussions.
Local Franchise Opportunities May Be Temporarily Available
What does this mean? Just that! Raising Canes has said they plan on temporarily holding off new franchise applications. However, the franchisor’s focus will shift to the rapid development of company-affiliated restaurants within a specific geographical territory.
However, existing franchisees won’t be left stranded but will continue to get the best support.
So, when will such franchise opportunities become available for prospective franchisees? It all depends on what the franchisor thinks is best.
However, it provides an opportunity for prospective franchisees to make recommendations or suggestions about likely locations they feel will be best to open a Raising Cane’s Franchise outlet.
Final Thoughts
The Raising cane’s franchise is a rapidly growing franchise opportunity with ambitious global expansion plans. Does it hold significant potentials for investors? The answer is yes!
Although the food franchise is temporarily holding off on local franchising, you are assured that this won’t last long.
A hint is provided in its advice for prospective franchisees to contact it for suitable franchise locations. So, you can go right ahead if you think it fits your investment needs. Also, ensure you meet its franchising criteria too! This is very crucial to the process of owning this franchise opportunity.