Domestic Franchise Information

Requirements

Shoney’s Restaurants have the opportunity for tremendous growth in various local and international markets. Our success will come from securing passionate and trusted franchise area developers whose goal is to consistently deliver a superior dining experience.

Shoney’s currently offers franchise opportunities for individuals and companies interested in single and multi-unit development in select territories around the country. Our business model gives each franchise developer an opportunity to build the Shoney’s brand in his or her territory, as well as leverage marketing and purchasing capacity. Our goal is to select franchisees who possess the right mix of expertise and enthusiasm, as well as the following characteristics:

  • Solid business experience
  • Multi-unit management
  • Proven expertise in retail (food and beverage a plus)
  • Previous franchise experience advantageous

The first step in being considered to operate a Shoney’s franchise in your territory is to complete the Shoney’s Request for Consideration Form (RFC). This form provides us the necessary information to evaluate your background and your financial and management capabilities.

We may request additional information related to the financial details disclosed in the Request for Consideration Form.

Should we move forward with your request, you will be required to submit a brief business plan for development. This should include market research on the territory and a proforma.

If, during the first face-to-face meeting or telephone conference with one of our sales directors, you are interested in continuing the process towards owning a Shoney’s Franchise, you will be provided our Franchise Disclosure Document, which is commonly referred to as the FDD, to assist you with your due diligence investigation of the Shoney’s® brand.

After careful consideration and mutual due diligence investigations, if there is continued interest on both sides to consider moving forward, Shoney’s will submit a Letter of Intent to you which includes the fees, as well as basic terms and conditions of the relationship. If approved, you may enter into a Development Agreement and pay the Development Fee, or you may enter into a Franchise Agreement for a single restaurant location and pay the Franchise Fee.

Once the Shoney’s Franchise Committee approves your application, you will be sent the Development Agreement and/or Franchise Agreement that you will be required to sign.

Once we receive the signed agreements and all necessary documentation with the Development and/or Franchise Fees, we will countersign your agreements and return a countersigned copy to you.

Once we have countersigned your Agreements and received your Development and/or Franchise Fees, you are now officially a Shoney’s® franchisee, our franchise services team will begin working directly with you to open your restaurant as quickly and efficiently as possible.

Finding the right location is the most important characteristic of our business. Site acceptance by Shoney’s does not in any way imply an assurance of the success of the proposed restaurant and signifies only that the site meets the minimum site requirements of Shoney’s, based upon our past experience.

Traditional Location: Stand-alone building or strip center end-cap
Non-Traditional Location: Airports, Colleges / Universities, Casinos, Sports / Entertainment Venues, Travel Centers
Building Sq. Footage: 1,400-2,800 Shoney’s on the go and 4,000-6,000 stand alone and nontraditional end cap prototype option available.
End-cap Requirements:

  • 3800 sq. ft. +-
  • 50 or more parking spaces
  • Access delivery space for food truck
  • Garbage disposal area

Minimum Parking: Shoney’s on the go: 40 / Stand Alone: Small – 60 / Large – 85+
Traffic counts: 20-30K cars (non-interstate sites)
Population (5 miles): Small markets – 15,000-40,000 / Large markets – 40,000+
Ingress/Egress Signage: Non-median bound, access to major and minor arteries
Site Visibility: High
Street Speed: 35-40 mph (ideal)
Signage: High rise and reader-board signs preferred. Monument sign acceptable for a strong site.
Prime Generators: Hotels, office complexes, light industrial, hospitals, transportation centers, colleges/universities, churches, big box retail, malls, sports complexes (K-12 and/or college), sports/Entertainment arenas, interstate accessibility
Additional Info: Site will need two entrances for food delivery from 18 wheelers, garbage disposal area for in and out service, 60+ parking places and it’s always a plus if there is room for bus parking. We recommend going with a site no smaller than 1.2 acres. End cap prototype is available as well. Zoning that allows the sale of alcohol.

DOMESTIC RESTAURANTS

Liquidity
$500,000
Net Worth
$1.5 Million
Franchise Fee
$35,000

For franchisees purchasing existing restaurants, these requirements may be lowered, depending on the specific situation.

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This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. An offering is made only by a Franchise Disclosure Document. There are 15 states that regulate the offer and sale of franchises – California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you are a resident of one of these states or are receiving this message in one of these states, we will not offer you a franchise unless and until we have complied with any applicable pre-sale registration and/or disclosure requirements in the applicable state.