Long John Silver’s Franchising Information & Startup Cost
Long John Silver’s is a seafood franchise with a rich menu. This menu includes Wild Alaska Pollock, Shrimp, Salmon, Chicken and Pacific Cod. Its first outlet was opened for business in 1969 in Lexington, Kentucky.
That same year, it began franchising operations which have seen it grow into a national and eventually an international brand.
Backed by over 50 years of experience in the restaurant industry, investors are assured of the best support plus a guarantee to succeed. This franchisor prides itself on owning and operating the largest seafood quick-serve restaurant system in the world.
90% of its restaurants are franchised and present in over 40 states as well as an international spread.
The Ideal Candidate
Long John Silver’s has a profile it wants its franchisees to fit. First, you must possess a strong entrepreneurial spirit as well as an ambition to grow your business. You must insist on personal involvement as well be someone that pays close attention to detail.
What more? If you want to seize the opportunity to franchise with an industry leader, Long John Silver’s will like to partner with you.
According to this franchisor, it is looking for investors who are driven to succeed. It seeks for 3-store commitment over three years. This is due to its strong desire to grow the brand.
So, if you have the required capital, passion to grow and operate your franchise as well as the commitment to building people capability, then Long John Silvers franchise might be the right fit.
Owning a Long John Silver’s franchise comes with fulfilling its financial requirements. There is an estimated initial investment that starts from $109,250 to $1,612,500. This cost covers both for its express restaurant as well as for its freestanding traditional restaurant.
There are additional fees you are likely to incur. For a better understanding of what the estimated initial investment includes, let’s get into details by providing a breakdown. The initial franchise forms a basic part of the initial investment.
This starts from $10,000 to $20,000. Real estate fees vary based on multiple factors.
There are construction costs between $20,000 to $90,000 based on the store model. What more? Furniture, fixtures & equipment costs between $35,000 to $100,000. The initial investment also includes signage/awnings fees ranging from $15,000 to $75,000. Computer equipment will cost anywhere from $6,500 to $28,000.
Training expenses will cost from $6,000 to $25,000, start-up inventory at $3,000 to $20,000 and pre-opening & opening advertising fee from $0 to $12,000. There are more. Security and utility deposits, licenses and other prepaid expenses cost between $3,000 to $30,000.
Support services agreement comes at a one-time charge and ranges from $750 to $2,500. New Long John Silver’s franchisees will need additional funds for 3 months in the amount ranging from $10,000 to $200,000
As stated earlier, there are additional fees to be incurred by franchisees. A lot of such costs come up in the course of ownership. and include the royalty cost. This comes at 5% for traditional restaurants and 2.5% for its express restaurants’ gross sales.
5% of gross earnings are charged as advertising fees for traditional & co-branded restaurants while 1% of gross earnings are paid in advertising fees for express restaurants.
When transferring a franchising agreement, it will cost you $2,000 per franchise agreement. This is multiplied by the number of franchise agreements being transferred.
Several other costs vary and include the late fee, audit fee, indemnification, and attorney fees and costs.
Others include liquidated damage, insurance premiums, support services agreement fees, food safety audits and voice of the customer fees among others. Details of all such fees are made available in the franchisor’s franchise disclosure document.
This document is presented to you during the franchise application process for your review. It contains the entire ownership terms as well as the requirements.
Long John Silver’s Franchise Term And Renewal
A lot of prospective franchisees will like to know how long a term lasts and if there are provisions for renewal. A standard agreement term for a Long John Silver’s is 20 years. However, there are two five-year options or concurrent with lease term not exceeding a total of 30 years.
Franchise renewal isn’t automatic. Franchisees must meet or comply with the franchisor’s renewal conditions to be considered for an extension.
Get In Touch
To join the Long John Silver’s franchise family you only need to reach out to it. There are options for a general inquiry about the franchise as well as another for franchising. This process is quite straightforward. You only need to fill and submit the form and wait for a response.
You are reached by the franchisor using the contact details supplied on the form. More detailed discussions are held about the franchise opportunities as well as the investment options available. The process from this point isn’t difficult at all. This is because you are guided through the entire application process.
However, proceeding with the application requires you to meet all the conditions set by the franchisor as outlined above.
Training is an integral part of its investment requirement. This is meant to give you the heads-up on what it takes to run or operate a successful Long John Silver’s franchise. Franchisee-owned training units are a crucial part of its training program.
Long John Silvers certifies select franchise-owned locations as training grounds for traditional and express restaurants. However, locations for training the franchisee’s employees are chosen as seen fit by the franchisor.
The training program begins immediately after signing the franchise agreement.
It starts with a pre-opening management training program that lasts for a set period. Not only is training provided at the start of franchise ownership, but it’s also an ongoing process. This is in the form of refresher courses and retraining programs for franchisees as well as their managers and almost members of their management team.
Long John Silver’s franchise has been covered in this article. We have looked into the basic information required to own or operate one. The main journey begins with applying for the opportunity.
One thing must be stated though; the franchisor has the right to alter any information regarding its operations. Therefore, certain information may differ from those included here.