About Otto Restaurant Franchise
Otto Restaurant is a dining franchise operated by Otto Franchising LLC, offering a restaurant concept that provides franchise owners with an established brand, menu, and operational system.
The franchise model is designed for entrepreneurs who want to enter the restaurant industry with the backing of a proven concept and comprehensive support.
The franchise system provides owners with the tools, training, and brand identity needed to establish and operate their restaurant location.
Otto Restaurant Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | N/A | One-time payment upon signing |
| Royalty Fee | 5.0% of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Fund Contributions are payable in the same manner as the Royalty. Your total req | National brand fund |
| Total Investment Range | $308,500 – $1,041,500 | Includes build-out, inventory, working capital |
The investment range of $309K–$1.0M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5.0%) and marketing fee (Fund Contributions are payable in the same manner as the Royalty. Your total req) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Real Estate/Rent (2) | $7,800 | $51,000 |
| Lease, Utility and Security Deposits (2) | $5,200 | $28,000 |
| Design and Architectural Fees | $7,500 | $25,000 |
| Leasehold Improvements (3) | $50,000 | $250,000 |
| Furniture and Fixtures (4) | $25,000 | $200,000 |
| Equipment (4) | $120,000 | $300,000 |
| Signage | $8,000 | $25,000 |
| POS System and Software (5) | $4,000 | $8,000 |
| Professional Fees | $3,000 | $6,000 |
| Business License and Permits | $500 | $2,000 |
| Opening Inventory and Supplies (6) | $6,000 | $20,000 |
| Grand Opening Advertising (7) | $2,500 | $2,500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $15,000 |
| Renewal Fee | $500 |
| Technology Fee | $250 |
| Initial Training Fee | $500 |
| Relocation | 20% of the then- current franchise fee |
| Interest on overdue amounts | 4% above the prime rate of interest on the first day of each month or the maximu |
| Insufficient Funds Processing Fee | $100 |
| Management Fee | $500 |
| Administrative Fee | $500 |
| Real Estate/Rent (2) | $7,800 |
| Lease, Utility and Security Deposits (2) | $5,200 |
| Design and Architectural Fees | $7,500 |
| Leasehold Improvements (3) | $50,000 |
| Furniture and Fixtures (4) | $25,000 |
| Equipment (4) | $120,000 |
| Signage | $8,000 |
| Professional Fees | $3,000 |
| Business License and Permits | $500 |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | exclusive |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Renewal Term | Section 1.E and Section 13 of Franchise Agreement |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Does not offer financing. |
Otto Restaurant Franchise Earnings — Item 19
Otto Restaurant does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Otto Restaurant Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Otto Restaurant System Growth
Otto Restaurant currently operates 7 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 7 | ||
| 2021 | 13 | ||
| 2021 | 20 | ||
| 2022 | 9 | ||
| 2022 | 13 | ||
| 2022 | 22 | ||
| 2023 | 12 | ||
| 2023 | 13 | ||
| 2023 | 25 |
Otto Restaurant Franchise — FAQ
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