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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:
Density	Units
1. North Carolina	6
2. Texas	5
3. Virginia	5

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?

Listed in the SBA Registry?

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 Office	3 Weeks
2. On-Site	2 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:

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

Franchisor Background

Year Established:

Franchising Since:

Operating Units:

Geographic Distribution:

North America: