Franchising Opportunities at Famous Dave's

Document Sample
Franchising Opportunities at Famous Dave's Powered By Docstoc
Thank you for your interest in Famous Dave’s and the franchising opportunities we offer.  Enclosed you 
will find our franchise information package detailing this exciting concept. 
 Famous Dave’s is a “specialty” casual dining restaurant franchise creating environments that transcend 
current restaurant offerings by serving the highest quality, flavor‐intense foods in surroundings that are 
stimulating, interesting and fun! 
We continue to grow!  As of December 31, 2009, Famous Dave’s has 177 restaurants open including 45 
corporate and 132 franchised locations in 37 states.  We have been ranked #1 in our restaurant category 
by “Entrepreneur Magazine” in 2005, 2007, 2008, 2009, and 2010.    Consumer Reports has listed 
Famous Dave’s as one of the hottest chain restaurants. 
We are committed to the growth of our franchise system and are seeking franchisees experienced in 
owning and/or managing casual dining, full‐serve restaurants, in or near the desired territories.  A 
minimum liquid net worth of $750,000 (US) is also required. 
Please review the enclosed materials and, if you would like to proceed further, return the completed 
application to our office.   If your qualifications meet our criteria, we will call you for an interview and 
forward our FDD (Franchise Disclosure Document). 
Our website is at: 
Jim Schwitzer 
Director of Franchise Sales & Development 
                                                nr n e
                              s  t e a a e T GO
                           d g -wih s p r
                                          t O
  e f u Smo e
           k  o s ” t l ul n
             h u e s ye b i i
On o o r “

               Th Al Ame ia
                 e l-   rc n BBQ Fe s ®

                               THE LEGEND OF FAMOUS DAVE’S!

For the Good Times…

Remember some of the more memorable times with family and friends? It really wasn’t at some fancy
restaurant – it probably was just a good ol’ backyard barbecue where the Weber kettle was full of ribs,
chicken and burgers, and smokin’ up a storm. There was probably lots of freshly picked corn-on-the-cob
boiling away in a big pot, plenty of home baked goodies, strawberry shortcake, peach cobbler, big
pitchers of freshly squeezed lemonade, iced tea, and plenty of laughter and good conversation.

Well, we’re 50 years out-of-date! A visit to Famous Dave’s is like going back home to a good old family
backyard barbeque, complete with slow-smoked St. Louis-style ribs with a family secret sauce, large
sumptuous portions of real Southern grilled chicken, honey-buttered cornbread, creamy cole slaw,
homemade bread pudding, and that hard to find Southern hospitality that makes you feel like you’re one
of the family.

We want you to feel at home at Famous Dave’s! Our restaurants are cozy and comfortable for the whole
family. We are kid-friendly, with a menu just for kids. Every customer is treated as though they were a
“guest” at one of Dave’s famous backyard barbeques. It’s genuine hospitality that’ll make your dining
experience real memorable. Our motto is: “We don’t want just satisfied guests; we want ‘delighted’
guests”. To accomplish this, our associates undergo extensive training before they are allowed to wait on
our guests. We know you will appreciate this extra effort.

If you don’t have time to join us for dinner here, we’ll pack all our good cookin’ for take-out. Planning a
party? We have a complete bulk menu for large to-go orders. You can have a whole barbeque meal in
your own backyard where we do all the cookin’, you take all the credit and we won’t even tell!

More than just a business in today’s fast-paced world, Famous Dave’s has created this BBQ concept so
everyone can enjoy our good old barbeque, and a truly memorable dining experience. Nothing
compliments an excellent meal more than sharing it with family and friends.

                “May you always be surrounded by good friends and great barbeque!”
                                                                                                                         March 26,2010
                                  FINANCIAL FACT SHEET


Franchise Fee:  (per location)                Type I = $30,000 Type II & III = $40,000
Development Fee: (per location)               $10,000
Royalty Fees:                                 1.5% first 12 months for units opening in 2010
                                              then reverting to 5% of Gross Revenues

Local Advertising:                            Minimum of 1.1% of Gross Revenues Quarterly
                                              Minimum of 1.5% of Annual Gross Revenues
Marketing Fund Fee:                           0.5% of Monthly Gross Revenues during 2010.

                                              Type I = under 4,000s.f. Type II = 4,001-5,499 s.f. Type III = 5,500-6,200s.f.

DEVELOPMENT COSTS:                                        Type I                         Type II                         Type III

Initial Fee (Franchise Fee)                             $30,000                         $40,000                         $40,000

Improvements/Remodeling                          $300,000 - $550,000             $425,000 - $615,000            $475,000 - $1,300,000

Land, Building and Construction                            N/A                $1,575,000 - $2,407,500 $2,407,500 - $3,060,000

Training Expenses - You and staff                 $10,000 - $20,000               $15,000 - $30,000               $25,000 - $40,000

Reimb. Of Expenses for Open. Team                 $25,000 - $40,000               $35,000 - $50,000               $45,000 - $60,000

F,F,D,E                                          $175,000 - $300,000             $250,000 - $400,000             $450,000 - $560,000

Architectural and Engineering Fees                $20,000 - $30,000               $25,000 - $40,000               $50,000 - $70,000

Signs                                             $25,000 - $35,000               $30,000 - $45,000               $45,000 - $75,000

Liquor License                                    $500 - $5,000 b/w                $5,000 - $50,000               $25,000 - $75,000

Site Model Report Fee                                     $750                            $750                            $750

Three Months Lease Payments                        $9,000 - $18,000               $20,000 - $30,000               $30,000 - $55,000

Three Months Salaries - Employees                 $15,000 - $35,000               $25,000 - $50,000               $60,000 - $95,000

Miscellaneous                                      $5,000 - $10,000                $5,000 - $10,000               $15,000 - $25,000

Grand Opening Celebration                         $10,000 - $15,000               $10,000 - $25,000               $15,000 - $30,000

Additional Funds - Three Months                    $5,000 - $10,000                $5,000 - $15,000               $15,000 - $35,000

TOTAL if premises LEASED                       $630,250 - $1,098,750            $890,750 - $1,400,750 $1,290,750 - $2,460,750

TOTAL if premises PURCHASED                                N/A                 $2,020,750 - $3,163,250 $3,193,250 - $4,165,750

  The above figures are estimates and will vary depending on the site, economic factors, market conditions, and various other factors.
  n e 1n u     sa r n C tg r
Ra k d# i o rRe t u a t a e o y
          E te r n u    g zn ”
         “ n r p e e rMa a i e
1.   What do I get when I purchase a Famous Dave’s Franchise?

     ♦ Famous Dave’s creates the best concept, prepares the best food, develops the best brand and
       executes the best sensory experience for our guests!
     ♦ Training for Principal or Principal’s designee (minimum 3 days)
     ♦ Training for Director of Operations, GM, Kitchen Manager (minimum 25 days)
     ♦ Opening Assistance (up to 21 days)
     ♦ Operations Manual provided
     ♦ Training Manual provided
     ♦ Provide written schedule of all foods, food items, beverages, clothing, FFE
     ♦ Provide approved supplier list
     ♦ Provide designated supplier list
     ♦ Provide advertising and marketing recommendations
     ♦ Provide “Grand Opening Celebration” package
     ♦ Will make available basic business and accounting procedures

2.   In addition to the initial investment required to open a Famous Dave’s Restaurant, what
     ongoing payments am I required to make during the term of the Franchise Agreement?

     In addition to other expenditures, you are required to make a royalty payment of 1.5% for any
     restaurants you open in 2010. The 1.5% royalty payment is applicable for twelve months from
     the date of opening and then it reverts to the rate of 5% of your restaurant’s gross revenues for the
     balance of the term of the Franchise Agreement. Also, a Marketing Fund Fee of 1.0% of your
     restaurant’s gross revenues will be paid during 2010.

3.   What is the term of the Famous Dave’s Franchise Agreement?

     The Famous Dave’s Franchise Agreement provides for a twenty (20) year term from the date of
     opening. Typically you have an option to renew for an additional ten (10) year term subject to
     your fulfillment of certain renewal conditions.

4.   What are the advertising requirements?

     You must spend at least 1.1% of your quarterly gross revenues and 1.5% of your annual gross
     revenues on approved local advertising. When there are two or more Famous Dave’s Restaurants
     in your Designated Market Area, you will contribute Local Advertising Fees equal to 1.5% of
     your monthly gross revenues to the local advertising group. Local Advertising Fees will meet
     your local advertising requirement.

5.   Does Famous Dave’s provide personnel for the Restaurant?

     Except for the initial training and Opening Team assistance, we do not recruit personnel nor do
     we provide emergency restaurant personnel fill-in assistance. We will provide you with the basic
     procedures and guidelines to use in recruiting and training your personnel, but the responsibility
     for developing a strong personnel program is yours.
6.    How much money will I make from my Restaurant?

      The profit potential of your Restaurant is impossible to determine and is a function of many
      variables, not the least of which is management. We strongly encourage you to consult with
      your accountant and/or business advisor.

7.    Is the Franchise Agreement “strict”?

      Famous Dave’s is well known for its quality. The conditions in the Franchise Agreement have
      been established to maintain these quality standards. Any erosion of the standards will harm the
      image and reputation of all Famous Dave’s restaurants.

8.    Do I have to purchase my equipment and product supplies from Famous Dave’s?

      You must purchase some of the foods, food items and recipe ingredients which are proprietary to
      Famous Dave’s only from designated suppliers. You will be able to take advantage of Famous
      Dave’s national purchasing program. You also must purchase and use the brand name products
      required by Famous Dave’s which can be purchased from any supplier. You must purchase or
      lease certain products such as equipment and signs, décor items, and food and beverage items,
      which satisfy the written standards and specifications established by Famous Dave’s. These
      requirements provide for uniform high quality and consistency. This is vital to ensure that our
      quality reputation is maintained.

9.    Should I hire an attorney?

      Yes! Your lawyer should review all the terms of the Franchise Agreement and other related

10.   Can I make changes to the menu?

      No. Our specialty menu items allow no discretion to franchisees in determining the menu for a

11.   Do I have the ability to choose between leasing or owning a building?

      Yes. The decision to lease or own a building is yours. However, Famous Dave’s must issue a
      “no-objection” letter regarding the location before you purchase or lease.
                                                                                         Fall 2009 Volume 12, Issue 2

     Famous Dave’s Celebrates 15 Years! From
      a Hayward BBQ Shack to Times Square
                                                           Happy Anniversary, Famous Dave’s! The year 2009 marks 15 years
                                                           of the most mouthwaterin’ BBQ in all the land and we’ve been
                                                           celebrating Famously. This year’s been plenty memorable. Famous
                                                           Dave Anderson himself rang the opening bell at NASDAQ in honor
                                                           of our 15th Anniversary. At the sound of the bell, “We whooped it
                                                           up, hollered and cheered,” said Famous Dave Anderson. After the
                                                           opening, the celebration moved to Times Square where a Famous
                                                           Dave’s video stopped crowds with visions of juicy ribs, slathered
                                                           with sauce and licked by flames, all from NASDAQ’s 10-story video
                                                           screen. It was a risky venture, tantalizing the New York crowds
                                                           with taste temptations but the Times Square Famous Dave’s was
                                                           ready to ease growing hunger pangs.

                                                           Fame comes from humble beginnings. Famous Dave’s never forgets
                                                           that its award-winning slow-smoked ribs came from one man’s
                                                           quest for great ‘que with tasty fixin’s served by friendly folks in
                                                           a down-home atmosphere. The very first Famous Dave’s, nestled
                                                           among the northwoods of Hayward, WI was celebration central on
                                                           August 1st when over a thousand BBQ fans gathered from across
                                                           the nation to share in the fifteenth anniversary cheer.

The celebration proved pigs can fly and dreams do come true when a flying Wilbur parachuted from a plane overhead to join
the fun of live music and sauce-slathered BBQ.

Smiles were wider than The Big Slab of Dave’s XXL Ribs when the
whole restaurant sang “Happy Birthday” with the cutting of a
delicious cake. “It reminded all of us of the way that this place has
touched the lives of so many people,” said Hayward General Manager
Kris Shelton, “through something so seemingly simple as cooking
their meal for them.”

Dave Anderson acknowledged the hard work and support of all
Famous Dave’s team members, devoted customers and franchise
partners, who, he said, “share our dream to become America’s
Official Barbeque Joint and one day to see Famous Dave’s throughout
the world!” With 178 restaurants in 37 states, Famous Dave’s dream
is well on its way to becoming a reality.

Fifteen years. Why Famous Dave’s is just a teenager and you know what that means. The growth spurt is yet to come!
                         Discover the Legen
Fifteen Years and Growing Strong
Join the celebration. Claim a franchise strengthened with 15 years of market strategy,
planned growth and support to grow on.

Taste-Tested, Time-Tested and Ready for                    180
                                                                 NUMBER OF RESTAURANTS
More! Famous Dave’s Always on the Rise                     170

with New Restaurant Opportunities:                         150
                                                           130      126
 Recent Openings!              Opening Soon!               120
                                                           110               120 123 133
                                                           100 104
     Tualatin, OR                  Gilbert, AZ              90           104
                                                            80      88
 West Lake Village, CA            San Jose, CA              70 66
     Amarillo, TX                  Aurora, CO               60
   Lake Delton, WI                Cascade, OR               40
   Fort Collins, CO             Jacksonville, FL            30
                                                            20 38    38  41   44   47   45
      Topeka, KS                   Seattle, WA              10
                                                              2004   2005   2006   2007   2008   2009
                                                                                                Mid Q4
                                                                Company-Owned        Franchise-Operated
ndary Opportunity
 Singin’ the Blues – in                                 Victor Salamone Melds Franchise and
Ribbons. Third Quarter                                  Corporate as New VP of Franchise
    Nets 27 Awards                                      Operations & Development
                     “Best BBQ”
  Phoenix Magazine – Best of the Valley Reader’s Poll

           “Best Ribs” Golden Fork Award
    Fox Cities Magazine, Green Bay, Appleton, WI
                                                                                                         A seasoned franchisee
          “Best Wings” Grand Champion and
                 “Best Buffalo Wings”                                                                    working for Famous
     King of the Wing Competition, Pensacola, FL                                                         Dave’s on the
            “Best Barbeque” – 2nd Place                                                                  corporate side? Now
         “A” List – Denver online Metroguide
                                                                                                         that’s talkin’ turkey!
           “Best Bar B Que” – 2nd Place
       Quad Cities Times Reader’s Choice 2009                                                            Victor Salamone, an
            “Best Restaurant Website”
                                                                                                         invested franchisee
       Web Marketing Association, Minneapolis                                                            since 2003, has joined
    “Most Unique Item” Chocolate Covered Bacon                                                           us as our new VP of
             “Best of Taste” – 2nd Place
                 Taste of Colorado                                                                       Franchise Operations
   “Best Barbecue Restaurant” – South New Jersey
                                                                                                         & Development.
        NJ Monthly Reader’s and Critic’s Poll                                                            Victor, with Famous
             “Best BBQ” Reader’s Choice                                                                  Dave’s franchises in
  2009 ‘Best of the Best’ Edition – What’s Up El Paso
                                                                                                         Louisville, KY since
           “Best Catering” Reader’s Choice                                                               2003, grew up working
Little Suburban Newspaper – Roseville, Little Canada,
                   Shoreview, MN                                                                         in the restaurant
         “First Place Sauce” – Critic’s Choice                                                           business and has
      “Second Place Best Ribs” – Critic’s Choice
              Mansfield Rockin’ Ribs, OH                                                                 clocked more than
                     “Best BBQ”
                                                        30 years in the hospitality and restaurant industry. Restaurant
                   Taste of Tacoma                      operations is practically in his genes, after all, he worked in his
               “Best Burger” – 1st Place                father’s restaurants for years before branching out to join Denny’s
          City of Tracy 4th of July Picnic, CA
                                                        in 1982.
          “Top Barbecue” Reader’s Choice
        5280 Magazine, Denver/Thornton, CO
                                                        Graduating from the University of Wisconsin-Stout with a Bachelor
               “People’s Choice Award”
                 Taste of Fort Collins                  of Science in Hotel and Restaurant Management, Victor began a
      “Best Restaurant – Best of the Main Line”         long-term career with Hilton Hotels. From 1997 to 2002, he held
                  Reader’s Choice                       the position of Vice President of Procurement & Development for
Main Line Times/Main Line Suburban Life, Philadelphia
                                                        Famous Dave’s, and then brought his operations experience to bear
                “The People’s Choice”
2009 National Capital Barbecue Battle, Washington, DC   in 2002 as Hilton’s Director of Food & Beverage Operations.
   “Best Restaurant” and “Best BBQ” Reader’s Poll
               Bakersfield Californian                  We welcome Victor’s experience, and especially his insider’s
 “Critic’s Choice Greatest Ribs in America” 1st Place   understanding of franchise operations, to our home base.
“Critic’s Choice Greatest Sauce in America” 3rd Place
   Marc’s Great American Rib Cook-Off, Cleveland

        “Best Barbecue” Reader’s Choice and
                 “Best Blues Club”
               Minneapolis City Pages
Wally Doolin, 35-Year Restaurant Biz Veteran Joins the Board
                                       No doubt about it, Famous Dave’s found a winner to join our board. Wally Doolin, former
                                       President and Chief Executive Officer of Carlson Restaurants Worldwide (CRW) and TGI
                                       Friday’s, and former Chairman and Chief Executive of Buca, Inc. joined up this fall and we’re
                                       still pinchin’ ourselves it’s for real.

                                       Wally is the founder and CEO of Black Box Intelligence, which provides benchmarking
                                       information and analysis for public and private restaurant companies and serves as Executive
                                       Chairman and CEO of ESP Systems, a hospitality technology company. He is a member of the
                                       board of directors of Caribou Coffee and of Share Our Strength, an organization dedicated to
                                       eliminating childhood hunger.

                                       “We’re delighted to be able to attract an individual of Wally Doolin’s caliber to our board
                                       of directors, further expanding the functional and strategic expertise of our board,” said K.
                                       Jeffrey Dahlberg, Chairman of the Board. “Wally adds an amazing breadth of experience and a
                                       broad seasoned perspective to our business.”

                                    Wally brings the best of both worlds to his position on the board; he’s a customer, too! “I’ve
                                    been a great admirer, and customer, of the brand for many years, and have always been
   impressed with the passion and level of execution that Famous Dave’s associates bring to the business each day.” Prior to
   his 13 years with CRW and TGI Friday’s, Wally’s wealth of experience included senior leadership positions with W.R. Grace’s
   Restaurant Division, Flakey Jake’s, Inc., Steak and Ale Restaurants, and as president of Applebee’s.

   The recipient of the IFMA Silver Plate and NRN Golden Chain awards, Wally is a Board Member Emeritus of the National
   Restaurant Association, and past chairman of its Education Foundation.

   The Weather’s Cold but We’re Smokin’ Hot Meat and Potatoes
                                                  Five flavorful combos elevate meat n’ potatoes to a whole new level. Guests face
                                                  their hardest task ever – deciding! The Smokin’ Hot Meatloaf Platter offers two
                                                  thick slices of hickory-smoked meatloaf topped with crispy onion strings atop garlic
                                                  redskin mashed potatoes, mushroom sauce and green beans. Are ya’ hungry yet?
                                                  How ‘bout a Flame-Grilled Ribeye Platter: hickory-smoked steak with Dave’s special
                                                  Barbeque Butter accompanied by roasted baby reds, baby portabellas and a side of
                                                  your choosin’.

                                                  For the hungriest who say, “Stick to your ribs,” we offer our Smokin’ Hot Meatloaf-n-
                                                  St. Louis Rib Combo: four St. Louis-style ribs paired with a big ole’ slice of our new
                                                  meatloaf. We heap on corn-on-the-cob, a corn bread muffin and two sides of your
                                                  choice. Or set your sights on our Smokin’ Hot Meatloaf-n-Meat BBQ Combo and make
                                                  the tough decision to add tender Texas beef brisket, Georgia chopped pork, rib tips,
                                                  catfish, chicken tenders or wings to your generous slice of meatloaf. We round it out
                                                  with a corn bread muffin, corn-on-the-cob and two sides of your choice.

                                                  It’s a downright horn of plenty but only for a limited time.
                                                  * Prices and participation may vary by location.

For more information visit our web site at, or contact Jim Schwitzer, Director of
Franchise Sales and Development, at 1-800-210-4040 or by e-mail at
            This brochure does not constitute an offer to sell a Famous Dave’s franchise.
                      An offer to sell a franchise is made by prospectus only.
                Famous Dave’s (NASDAQ symbol “DAVE”) MN Reg. No. F-3955
        Corporate Headquarters: 12701 Whitewater Drive, Suite 200, Minnetonka, MN 55343
                                 What makes us

There are no shortcuts to real, honest barbeque. That’s why,
when everybody else is down sleeping, we’re up smoking. And
long before the sun comes up, our sauces are cooking down.
See, we know how it is: When you’re craving mess-making,
soul-satisfying barbeque, good enough just ain’t good enough.

That’s why we’re dedicated, bound and determined to
making the world’s best barbeque - bar none. It’s why our fans
are so passionate about our hickory-smoked St. Louis-style
ribs. It’s why our take-out and catering are a smokin’ success.
And it goes a long way to explaining why we win rib fests and
critics’ polls around the country.

                                           But while barbeque built our reputation, here’s a little secret:
                                           we give the same love and attention to everything we serve.
                                           Which is why even hard-core rib lovers hanker for our
                                           Texas beef brisket and sweetwater catfish. And it’s the only
                                           explanation for why otherwise sensible folks somehow find
                                           room for our homemade southern praline bread pudding
                                           and hot fudge Kahlua brownies.

As long as the ribs keep coming, our guests tell us they’d be
happy with paper plates and folding chairs, but we believe the
world’s best comfort food demands comfortable surroundings.
Down-home décor and jumpin’ blues music are part of the
recipe, but it also includes true hospitality, superior service,
and stay-a-while smiles.

So what makes us Famous? Is it the sauce, the smoker, the
service? Stop on by and decide for yourself. You’ll find us
back by the barbeque.