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Red Hot & Blue
 

RED HOT & BLUE restaurants serve Memphis-style ribs, pork, beef, chicken plus salads, burgers and a full menu in a casual dining environment, featuring blues memorabilia and recorded blues music. Service is Southern hospitality.

Franchisor Background

Year Established:

  1988

Franchising Since:

  1991

Operating Units:

Franchised Units:32 84.2%  
Company-Owned Units:6 15.8%  
 ______ _____  
Total Operating Units:38 100%  
 

Geographic Distribution:

U.S.:38 100% In 10 States
Canada:0 0% In 0 Canadian Provinces
International:0 0% In 0 Foreign Countries
 ______ _____  
Total:38 100%  
 

North America:

States/Provinces with the largest number of operating units:
DensityUnits    
1. North Carolina6
2. Texas5
3. Virginia5

Registered in Following Registration States:

   California, Florida, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Virginia, Washington, Wisconsin, District Of Columbia, Alberta

Financial Requirements

Investment:

Minimum Net Worth:$1MM
Cash Investment:$347.7-868K
Total Investment:$397.75K
Average Total Investment:$398K
 

Fees:

Initial Franchise Fee:$35K
Average Franchise Fee:$35K
On-Going Royalty:5%
Average Royalty:5%
Advertising Fee:$375/Mo.

Average Number of Employees:

   30 Full-time, 20 Part-time

Space Needs (in square footage):

   2,400-5,000

Preferred Sites:

   Free-standing Building, Strip Center

Other Sites:

  

Encourage Conversions?

   Yes

Earnings Claims Provided?

   No

Listed in the SBA Registry?

   No

Support and Training

International Franchise Association:No
Canadian Franchise Association:No
Franchisee Association/Member:Yes, Member
Size of Corporate Staff:18
Site Selection Assistance?Yes
Lease Negotiation Assistance?No
Financial Assistance?No
 

Marketing Support:

Co-Op Advertising:No
National Advertising:No
Regional Advertising:No
Local Advertising:No
Marketing Materials:None Specified
Additional Services:None Specified
Other Marketing Support:None Specified
 

On-Going Support:

Central Data Processing:Not Applicable
Central Purchasing:Not Applicable
Field Operation Evaluation:Included in Fees
Field Training:Included in Fees
Initial Store Opening:Included in Fees
Inventory Control:At Additional Cost
Franchisee Newsletter:Included in Fees
Regional or National Meetings:At Additional Cost
800 Telephone Hotline:Not Applicable
 

Training:

1. Home Office3 Weeks
2. On-Site2 Weeks
 

Franchisee Qualifications

Ranked from 1 (unimportant) to 5 (important):
 
Financial Net Worth:5
General Business Experience:5
Specific Industry Experience:5
Formal Education:4
Psychological Profile:3
Personal Interview(s):5

Minority Representation

Units Owned by Minorities:

African-American:N/A
Asian-American:N/A
Hispanic:N/A
Native American:N/A
Other:N/A
Specific Minority:N/A

Terms of Contract

Term of Initial Contract:20 Year(s)
Term of Renewal Period:10 Year(s)
Passive Ownership:Not Allowed
Area Development Agreements?Yes, for 1 Year(s)
Sub-Franchising Contracts?No
Franchisees Allowed to Expand Within Territory?No

Expansion Plans

Projected New Units Over Next 12 months:

   6
U.S.:Yes, All United States
Canada:Yes, All Canada
Overseas:No
 
 
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