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WHY BECOME A FRANCHISEE?

While traditional elements of Southern Hospitality include generous food portions and friendly customer service, we believe what our founder Charley Watkins believed so many years ago, in 1971, when he opened our first restaurant: Southern Hospitality is also about connecting with one another.

Today, O’Charley’s has over 200 locations in 17 states. We attribute our success to helping foster those close connections while offering guests delicious, fresh dishes served in a comfortable and welcoming environment. It is this unique service philosophy, steeped in a richly cultured past, that continues to set us apart in the present and makes us a great franchise opportunity for the future.

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Our Restaurant

We’re proud that, even through tough economic times, O’Charley’s stands as a testament to how much quality and service matter. Our service philosophy is what has helped us become a strong, successful brand for over 40 years. And it’s just one of the reasons owning an O’Charley’s can be a rewarding investment.

Our Company Culture

Our driving force is a strong “Passion to Serve.” It permeates everything we do at all of our restaurants. What does it mean?

  • We do our jobs enthusiastically and purposefully.
  • We take pride in everything we do.
  • Our integrity, discipline and passion for our work are contagious.
  • We earn our guests’ loyalty by consistently exceeding their expectations.
  • People want to work with us because of our values.
  • People stay with us because we live our values.

Fresh Ingredients

Meals that keep guests coming back rarely start with a can, or inside a microwave or freezer. That’s why our popular dishes include fresh, never frozen: steaks, double-hand breaded chicken tenders and salmon. We also offer crisp salads and signature soups-of-the-day.

Supporting Our Communities

Giving back to the communities where we live and work is important to us. That’s why we support a number of local Children/Family, Arts, Civic and University related educational programs.

Supporting Our Troops

To thank those that have served our country, our individual restaurants have honored local veterans and active-duty service members through our Hometown Heroes Program. Since April 2013, we’ve recognized the service of over 140 heroes. O’Charley’s also supports Operation Gratitude, a non-profit organization that sends care packages to individually named U.S. service members in hostile regions overseas.

Use the navigation on the left of this page to learn more about what it takes to join us as an O’Charley’s Franchisee.

WHAT IT TAKES

Along with a willingness to be an involved, communicative and dedicated leader, you should also have experience in restaurant operations and be proficient in personnel management, financial management and marketing and business development.

Required Finances

  • $1,000,000 liquidity
  • $3,000,0000 net worth

Fees Per Restaurant

  • $10,000 development fee
  • $40,000 license fee
  • 4% royalty fee of weekly gross sales
  • Marketing fund and local store advertising fees vary.

Available States

  • Alabama
    Arkansas
    Florida
    Georgia
    Illinois
    Indiana
    Iowa
    Kentucky
    Louisiana
  • Missouri
    Mississippi
    North Carolina
    Ohio
    Pennsylvania
    South Carolina
    Tennessee
    Virginia
    West Virginia

Your Estimated Initial Investment

Type of Expenditure

Amount – low/high range

Method of Payment

When Due

To Whom Payment is to be Made

 

 

 

 

 

Development &License Fee

$50,000

See Item 5

See Item 5

Us

Pre-Opening Expenses (hiring, initial training, and pre-opening procedures)

$200,000 to $255,000

As Incurred

As Incurred

Independent Suppliers and Us

Lease Payment (monthly)

$6,000 to $11,000

Monthly

As Arranged

Landlord

Furniture, Fixtures and Equipment

$600,000 to $710,000

As Invoiced

As Arranged

Approved Vendors

Building Construction Costs

$830,000 to $1,200,000

As Invoiced

As Arranged

Approved Independent Contractors

Site Work Costs

$150,000 to $450,000

As Invoiced

As Arranged

Approved Independent Contractors

Signage

$40,000 to $90,000

As Invoiced

As Arranged

Approved Vendors

Point of Sale Hardware and Software (“POS System”)

$51,000 to $65,000

As Invoiced

As Arranged

Approved Vendors

Telephone System

$4,000 to $5,000

As Invoiced

As Arranged

Approved Vendors

Network Hardware

$4,000 to $5,000

As Invoiced

As Arranged

Approved Vendors

KDS Kitchen System

$8,000 to $20,000

As Invoiced

As Arranged

Approved Vendors

Smallwares

$27,000 to $37,000

As Invoiced

As Arranged

Approved Vendors

Pre-Construction Costs

$50,000 to $175,000

As Invoiced

As Arranged

Us and Approved Contractors

Initial Inventory

$40,000 to $80,000

As Invoiced

As Arranged

Approved Vendors

Business Licenses, Permits, etc. (excluding Liquor License) for first year

$5,000 to $15,000

As Incurred

As Arranged

Various Agencies

Grand Opening Advertising

$10,000

As Invoiced

As Arranged

Approved Vendors

Promotional Merchandise

$500 to $2,000

As Invoiced

As Arranged

Approved Vendors

Insurance Deposits and Premiums (first six months)

$10,000 to $20,000

As Invoiced

As Arranged

Approved Independent Carrier

Legal and Accounting Expenses

$10,000 to $30,000

As Invoiced

As Incurred

Various Agencies

Additional Funds (for first three months)

$50,000 to $100,000

As Invoiced

As Incurred

Landlord, Us, Employees, and Approved Vendors

TOTAL INVESTMENT FOR A SINGLE FRANCHISE

$2,105,500 to $3,340,000

 

 

 

SUPPORTING OUR FRANCHISEES

From managing your grand opening to providing ongoing advertising support, we’re committed to helping you every step of the way.

Here’s what you’ll get as an O’Charley’s Owner/Operator:

  • Site selection support
  • Prototyping building plans
  • A comprehensive brand-identity system consisting of a registered trademark, definitive logos, complete signage package and other graphic elements
  • Food and equipment purchasing program
  • Comprehensive management training program
  • On-site hourly training prior to opening
  • Ongoing field-operations support
  • Menu development and new food /beverage offerings to keep the menu fresh and interesting to our guests
  • Advertising programs
  • Turn-key local store marketing programs
  • Quality-assurance systems

FREQUENTLY ASKED QUESTIONS

What is a FDD?

Franchise Disclosure Document. This document explains in detail the franchised business, investment requirements, and our mutual rights and obligations in the franchise relationship. It also contains examples of the agreements you will sign to become a franchisee.

What is the Development Fee?

$10,000 per O’Charley’s that you wish to develop, payable upon approval as an O’Charley’s franchisee and signing your Development Agreement.

What is the License Fee?

License Fee is $40,000 per O’Charley’s restaurant that you develop, payable upon approval of the specific O’Charley’s site.

What is the royalty fee?

What are the marketing and advertising fees? The royalty fee is 4% of weekly gross sales. Marketing Fund is currently 0.5% and Local Store Advertising and Marketing is 2%

What qualifications does O’Charley’s seek in its potential franchisees?

The minimum non-financial qualifications include previous success in business, supervisory and/or training experience, and the ability to work well with our organization and move forward with the project in a timely manner. The financial requirements are $1,000,000 of Liquidity and $3,000,000 of Net Worth for each O’Charley’s that you wish to develop.

If I don't meet the financial criteria to become a franchisee, can I partner with someone who does?

Yes, you must supply us with an application and personal financial statement for each member of your potential franchise group.

Does O’Charley’s provide financing for restaurant development?

No, O’Charley’s does not provide financing. However, we are listed as an approved franchise offering on the Franchise Registry, www.franchiseregistry.com, which will expedite approval of a qualified loan application with a SBA lender.

What do I receive for being an O’Charley’s franchisee?

A strong brand name known for over 40 years

  • Rights to open and operate a O’Charley’s restaurant
  • Initial and ongoing training in all aspects of running the business
  • Local area marketing and collateral support
  • Business development consultation and field support
  • Ongoing research and development
  • Peer interaction at owner's conferences and regional meetings
  • Architectural prototype plans and restaurant layout design support
  • Proprietary products and volume pricing
  • ...and much more

Do I have to work in my restaurant?

No, but we are not looking for absentee owners. If you have prior restaurant management experience, you may complete training to act as the general manager. If you are not planning to work in the restaurant full time, we will require you to hire an experienced casual dine restaurant manager to operate your O’Charley’s.

How much money can I make?

We encourage our prospective franchisees to conduct significant due diligence during the discovery process and contact existing franchisees with questions on marketing, finances, sales volumes, operations, etc. The amount of profit or loss is dependent on a number of factors, including the ability of the franchisee to manage the business, drive sales volume, and control operating costs. In addition, we disclose in Item 19 – Financial Representation in our FDD to aid in your due diligence of the franchise opportunity.

How do I know if a O’Charley’s franchise is right for me?

Like owning and running any business, a O’Charley’s franchise is not for everyone. You must be willing to work long hours, be comfortable with such areas as personnel management, financial management, marketing, and business development. Having strong communication, motivation, and customer service skills is also very important in this business. For the right individual or entity, O’Charley’s can be a very rewarding business opportunity.

Does O’Charley’s provide demographic data for my potential development area?

Yes, although we rely in part on your knowledge of the area you wish to develop, we will provide you with demographics and other data on sites that you will present to us for evaluation and approval.

What kind of training will I receive?

Each potential franchisee and his or her manager candidates will attend training in a certified training restaurant, complete our comprehensive management-training program and be certified as "Trained" before opening and operating a O’Charley’s franchise. This in-depth course will familiarize you and your managers with every aspect of O’Charley’s proven business systems

Will I receive opening assistance and ongoing support?

Yes, after signing the franchise agreement and paying the franchise fee, you will immediately begin receiving assistance from the O’Charley’s' design & construction, training and operations departments. Prior to and upon opening, you will receive on-site assistance to training your hourly employees. Throughout the course of your business operation, you will receive periodic assistance from our operations department. Your assigned franchise business consultant will visit your restaurant for on-site consultation and quality assurance evaluations.

Who will coordinate my grand opening?

Will O’Charley’s provide marketing support? Your O’Charley’s Franchise Consultant and a O’Charley’s Marketing Rep will help you plan & manage your grand opening, as well as provide materials and programs designed to make the grand opening a success. Marketing campaigns, in store POP, menus and advertising material such as TV, radio, print ads, etc are developed and made available to O’Charley’s franchisee to purchase for use in your market area.

FRANCHISE INQUIRY FORM

Currently, there are franchising opportunities available in many prime areas of the country. We are looking for qualified candidates to become part of our growing company as our franchise expansion continues.

ABOUT AMERICAN BLUE RIBBON HOLDINGS

ABRH’s mission is to be a diversified, premier restaurant company and bakery product manufacturer, leveraging the expertise of the ABRH management team, infrastructure and investors’ insights to generate extraordinary returns for our shareholders and Strategic Franchise Partners. This management team has the proven track record of taking quality family, and casual restaurant brands and providing the capital, strategic vision and leadership with the goal of achieving a “Best-in-Class” status.

Learn more at http://www.abrholdings.com

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DOWNLOAD OUR FRANCHISE DEVELOPMENT PDF

Download the O’Charley’s Franchise Development pdf to learn more.


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STILL HAVE QUESTIONS?

Please contact:

Goodloe ​Partee
General Counsel
American Blue Ribbon Holdings, LLC
3038 Sidco Drive
Nashville, TN 37204
(​615) 7​82-6922
Goodloe.Partee@abrholdings.com