Outback Franchise Agreement: What You Need to Know
If you are considering opening a restaurant franchise, you may have come across the Outback Steakhouse franchise. Outback Steakhouse is a popular restaurant chain that specializes in Australian-style cuisine, including steak, ribs, and seafood.
If you are interested in becoming an Outback Steakhouse franchisee, you will need to sign a franchise agreement. This agreement outlines the terms and conditions of the franchise relationship between you and Outback Steakhouse.
Here are some important things you need to know about the Outback Franchise Agreement:
1. Franchise Fee
To become an Outback Steakhouse franchisee, you will need to pay a franchise fee, which is currently $10,000. This fee covers the cost of training, site selection, and other support services provided by Outback Steakhouse.
2. Royalties and Advertising Fees
In addition to the franchise fee, you will also be required to pay ongoing royalties and advertising fees. The current royalty fee is 4% of gross sales, while the advertising fee is 2% of gross sales. These fees are used to fund national advertising campaigns and other marketing initiatives.
3. Training and Support
Outback Steakhouse provides comprehensive training and support to its franchisees. This includes an initial training program at the Outback Steakhouse headquarters in Tampa, Florida, as well as ongoing support from a dedicated field consultant.
4. Site Selection
Outback Steakhouse provides assistance with site selection and lease negotiations. Franchisees are required to operate their restaurants in accordance with Outback Steakhouse`s branding and design standards.
5. Term of Agreement
The initial term of the Outback Franchise Agreement is 10 years, with the option to renew for an additional 10-year term.
The Outback Franchise Agreement can be terminated if the franchisee breaches the terms and conditions of the agreement. This includes failure to pay fees, failure to operate the restaurant in accordance with Outback Steakhouse`s standards, or engaging in illegal or unethical behavior.
In conclusion, becoming an Outback Steakhouse franchisee can be a rewarding and profitable business opportunity. However, it is important to carefully review and understand the terms and conditions of the Outback Franchise Agreement before signing on the dotted line. With proper planning and support, you can build a successful Outback Steakhouse franchise and become a part of one of the most popular restaurant chains in the world.