Initial Investment/Start Up Cost

Many franchisees have joined Western Sizzlin because of the competitive costs enjoyed by the Western Sizzlin system. Our application process includes interviews and an evaluation. Prior to opening your restaurant, qualified applicants will be required to complete our training program at one of our approved training restaurants. The importance of this training , and the training in your restaurant prior to opening, can not be overstated.

The chart below provides a better understanding of a franchisee’s initial cost investment:

Names of Expenditures Your Actual or Estimated Amounts Method of Payment When Due To Whom Payment is to Be Made
Initial Franchise Fee $30,000 Lump Sum Upon Signing Franchise Agreement Western Sizzlin
Real Property $375,000 - $2,300,000 As Arranged As Arranged Landlord Construction Companies
Site Development $250,000 - $1,000,000 As Arranged As Arranged Construction Companies
Utility and Security Deposits $1,000 - $50,000 As Arranged As Arranged Utility Companies
Initial Inventory $20,000 - $30,000 As Arranged As Arranged Approved Suppliers
Equipment $300,000 - $700,000 As Arranged As Arranged Approved Suppliers
Insurance $10,000 - $50,000 As Arranged As Arranged Insurance Company
Training $15,000 - $80,000 As Arranged As Arranged Transportation, Hotels and Restaurants
Grand Opening Advertising $10,000 As Arranged First 60 Days of Operation Advertisers
Additional Funds (2-3 Months) $50,000 - $250,000 As Arranged As Incurred You Determine
Total $1,061,000 - $4,500,000

Notes to Start-Up Costs

  1. Initial Franchise Fee. The Franchise Fee is used to defray Western Sizzlin’s costs for providing training, promotional assistance and materials, and other services that Western Sizzlin provides.
  2. Real Property. These restaurant investment figures concern expenses before opening and during the first few months of operation, and include estimated rent deposits of between $8,000 and $50,000, and base rent for the first month of between $4,000 and $15,000. Most units are stand-alone, although strip center locations are allowed. Since rent will vary substantially from location to location, you should adjust these numbers to reflect the actual amount of rent, which you may be required to pay with the restaurant. Your lease may also require the payment of percentage rent and other charges, including real property taxes, contract services, insurance, permits, utilities, and security expenses. The average suggested facility contains approximately 8,300 square feet of space. In the case of construction, your cost to build the restaurant facility will vary depending on the location. You should adjust these numbers to reflect the actual cost of the land and construction costs.
  3. Initial Inventory. Your specific requirements for initial inventory are described in the Operations Manual to meet the requirements to open the restaurant.
  4. Equipment. If you are entering into the Franchise Agreement as part of your purchase of an existing Western Sizzlin Restaurant, the cost of equipment, cash registers, signs, and other fixtures, and fixed assets may be significantly different from the figures indicated in the above chart. If you must remodel or renovate the restaurant to conform to Western Sizzlin’ s current standards and specifications, you will also incur expenses which Western Sizzlin estimates will range between $50,000 and $500,000. The estimate does not include figures for the financing, lease, or otherwise of the equipment.
  5. Insurance. You must obtain and maintain policies of insurance, part of which will normally be required to be paid in advance. Because of substantial variations in the cost of insurance, you should contact an independent insurance agent for more information.
  6. Training. You are responsible for arranging transportation and paying the expenses for meals and lodging for any persons attending the training program. The amount spent will depend on the distance you must travel and the type of accommodations you choose. The estimate contemplates attendance by 3 persons for 8 weeks traveling to Western Sizzlin’s designated location.
  7. Additional Funds. This amount is projected to cover operating expenses, including employees’ salaries and utility expenses for the first 2-3 months of operation. However, Western Sizzlin cannot guarantee that this amount will be sufficient.

Western Sizzlin does not offer any financing for your initial investment, and the availability and terms of financing to you will depend upon factors such as the availability of financing in general, your credit-worthiness, the collateral security that you may have, and policies of lending institutions concerning the type of business you will operate. The investment and expenditures required of actual franchisees may vary considerably from the projections set out above, depending on many factors, including geographical area, the amount of space leased and the business capabilities of any particular management and service team.

Any fees paid to Western Sizzlin are non-refundable except as outlined in Items 5 and 6 of Western Sizzlin’s Offering Circular.