The Investment How Much Does It Cost to Start a Restaurant?
If you’ve been researching “How much does it cost to open a restaurant?” Perkins can provide you with the answers you need. One of the best reasons to partner with a long-standing brand like Perkins is that we’ve opened hundreds of franchises throughout the decades, so we know exactly what you’ll need to get started. All of our restaurant and bakery franchise costs contribute to resources such as real estate support and training designed to save you time and money at every opportunity.
Here, we’ve provided you with estimates on some of the costs you’ll incur as a Perkins franchisee. For even more accurate information, get in touch with our team!
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Invest in the All-American Restaurant What Does it Cost to Own a Perkins Restaurant Franchise?
AVERAGE UNIT VOLUME
WHAT ARE THE INVESTMENT COSTS FOR OPENING A PERKINS RESTAURANT?
The Total Estimated Initial Investment
The total cost to open a new Perkins franchise is estimated to run between $1,703,050 and $2,732,300. This includes just about everything you’ll need to get started, including:
- A commercial lease on a spacious location
- Opening inventory
- Furniture & fixtures
- Initial marketing expenses
- …And much more!
Since we’ve developed such a comprehensive breakdown of our restaurant and bakery franchise costs, there’s less worry of encountering unexpected expenses — so you can stay on track toward meeting
PERKINS FRANCHISE COST BREAKDOWN
|Expenditures||Low Amount||High Amount||Payment Method|
|Initial Franchise Fee Training||$40,000||$40,000||One Time Payment|
|Training Fee & Training Expenses||$82,000||$104,000||As Arranged|
|Real-Estate - Rent for 3mo.||$20,000||$60,000||As Arranged|
|Interest During Construction||$25,000||$30,000||Progress Payments|
|Equipment & Seating||$490,000||$590,000||Financed or As Incurred|
|Signs & Decor||$53,000||$82,000||As Arranged|
|Site Plans & Engineering Drawings||$12,500||$18,500||As Arranged|
|Travel for Opening Guide Meeting||$0||$750||As Arranged|
|Smallwares, Opening Inventory & Uniforms||$35,000||$40,000||As Arranged|
|POS System||$18,000||$20,000||Lump Sum|
|Help Desk & Maintenance||$500||$500||Annually|
|Computer Related Security Services||$2,500||$3,000||Annually|
|Grand Opening Promotion||$4,000||$8,000||As Incurred|
|Miscellaneous Opening Costs||$45,000||$55,000||As Incurred|
|Additional Funds - 3 Months||$300,000||$430,000||As Incurred|
|Online Learning Management System||$550||$550||Anually|
Reduced Royalties When You Franchise with Perkins
Because we’ve been in business since 1958, we understand that it can take time for any new restaurant to develop a strong presence in its community and establish a customer base. As an incentive for new franchisees, Perkins offers reduced royalties during your first years in business to give your franchise
time to reach its full potential.
Year 1 Royalties
Year 2 Royalties
Year 3 and Beyond
Multi-Unit Franchise Save Up to $20,000 in Multi-Unit Discounts
Interested in opening multiple restaurants? Perkins can help you develop your entire area to its fullest potential. When you invest in more than one Perkins franchise, you’ll be leveraging the time you’ve already spent learning our processes and enjoying significant discounts along the way: you could save up to $20K when you open three or more locations!
When you contact us, be sure to ask about franchise and development fees for multi-unit operators.
LET'S TALK ABOUT Your Next Steps on Your Franchise Journey
Find out how you can be a part of our family, and help us to bring the Perkins experience to more and more loyal diners, through single-unit operations and multi-unit ownership opportunities
Perkins Patriot Program Incentive
Perkins participates in the International Franchise Association’s Veterans Transition Franchise Initiative program to provide franchise opportunities to qualifying veterans. The purpose of the VetFran program is to honor those men and women who have served in the U.S. military. The VetFran program was developed to help veterans transition to civilian life. VetFran is a voluntary effort of International Franchise Association member-companies that is designed to encourage franchise ownership by offering financial incentives to honorably discharged veterans.
Perkins’ VetFran program incentive is called the Perkins Patriot Program (the “Patriot Program”). Perkins’ Patriot Program incentive provides a 25% reduction in the Initial Franchise Fee due under Perkins’ single unit Franchise Agreement for New Development Units only. This Incentive may not be combined with any other Incentive program and applies only to the first New Development Unit. To qualify, a prospective franchisee must request the Patriot Program at the time of application; must meet Perkins’ then-current qualifications for new franchisees; the franchise must be at least 51% legally and beneficially owned by persons meeting Perkins’ qualifying veteran status; the prospective franchisee may not have previously received a Veterans Incentive or Patriot Program incentive from Perkins. Perkins may discontinue this Patriot Program at any time.
Site Selection and Real Estate Support
Perkins stands out from other restaurant franchises because of the size of our locations. Our restaurants are typically at least 4200 square feet, so there’s plenty of room to accommodate a large number of guests at any time of day. A good deal of the estimated restaurant and bakery franchise costs will likely relate to securing a commercial lease and performing the necessary buildout.
Perkins provides our franchisees with guidance when it comes to selecting and preparing a new location. A few of the criteria we look for include:
- General location
- Traffic patterns
- Available parking
- Size, layout and other physical characteristics
- Rental terms and lease
- Economic circumstances of the community
- Other basic demographic data
This is another significant benefit of working with Perkins. Our longevity means we know just what to look for in a location and how to set franchisees up for success.