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Krystal Company, The
 

The KRYSTAL COMPANY, a 'cultural icon' in the Southeast, is a unique brand with 72 years of success as a niche franchisor, we provide quality service and thoughtful leadership to our franchise partners. We are an innovative, forward-looking franchisor who is looking for highly motivated operators. We offer a protected development territory, requiring a minimum 3-restaurant development agreement, minimum liquidity of $650K and a net worth of $1.2 million. KRYSTAL, fresh, hot, small and square.

Franchisor Background

Year Established:

  1932

Franchising Since:

  1991

IFA Member



Operating Units:

Franchised Units:145 38.4%  
Company-Owned Units:233 61.6%  
 ______ _____  
Total Operating Units:378 100%  
 

Geographic Distribution:

U.S.:380 100% In 15 States
Canada:0 0% In 0 Canadian Provinces
International:0 0% In 0 Foreign Countries
 ______ _____  
Total:380 100%  
 

North America:

States/Provinces with the largest number of operating units:
DensityUnits    
1. Tennessee105
2. Georgia104
3. Alabama53

Registered in Following Registration States:

   Florida, Virginia

Financial Requirements

Investment:

Minimum Net Worth:$1.2MM
Cash Investment:$250K-300K
Total Investment:$900K-1MM
Average Total Investment:$950K
 

Fees:

Initial Franchise Fee:$32.5K
Average Franchise Fee:$32K
On-Going Royalty:4.5%
Average Royalty:4%
Advertising Fee:4%

Average Number of Employees:

   12-15 Full-time, 15 Part-time

Space Needs (in square footage):

   1,300-2,200

Preferred Sites:

   Free-standing Building, Strip Center

Other Sites:

   C-Store

Encourage Conversions?

   Yes

Earnings Claims Provided?

   No

Listed in the SBA Registry?

   No

Support and Training

International Franchise Association:Yes
Canadian Franchise Association:No
Franchisee Association/Member:Yes, Member
Size of Corporate Staff:100
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:Included in Fees
Central Purchasing:Included in Fees
Field Operation Evaluation:Included in Fees
Field Training:Included in Fees
Initial Store Opening:Included in Fees
Inventory Control:Included in Fees
Franchisee Newsletter:Included in Fees
Regional or National Meetings:Included in Fees
800 Telephone Hotline:Included in Fees
 

Training:

1. Company Store4 Weeks
2. Corporate Computer Center1 Week
 

Franchisee Qualifications

Ranked from 1 (unimportant) to 5 (important):
 
Financial Net Worth:5
General Business Experience:4
Specific Industry Experience:5
Formal Education:2
Psychological Profile:2
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:Although we strongly support the objectives of the NMFI, we do not yet have any specific programs in place at this time.

Terms of Contract

Term of Initial Contract:20 Year(s)
Term of Renewal Period:20 Year(s)
Passive Ownership:Allowed
Area Development Agreements?No
Sub-Franchising Contracts?No
Franchisees Allowed to Expand Within Territory?Yes

Expansion Plans

Projected New Units Over Next 12 months:

   25
U.S.:Yes, SE,TX,OK,VA,NC,SC,WV,FL
Canada:No
Overseas:No
 
 
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