About Sticks Kebob Shop Franchise
Sticks Kebob Shop is a fast casual restaurant franchise featuring freshly prepared Mediterranean inspired wraps, salads, and entree platters made with chef created marinades and sauces.
The menu also includes side dishes, non alcoholic beverages, and craft beer and wine where permitted, targeting diners who appreciate a more elevated fast casual experience.
Franchising since 2021, Sticks Kebob Shop requires an initial franchise fee of $49,500.
Sticks Kebob Shop Franchise Cost & Fees
Minimum Investment
$248K
Average Investment
$410K
Maximum Investment
$573K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $49,500 | One-time payment upon signing |
| Royalty Fee | 3% of Gross Sales during the first six months of operations; and (ii) the greater of 6% of Gross Sales or $500 per week beginning in your 7th month of operations and thereafter. of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 4% of Gross Sales (Currently, 1.5% of Gross Sales) | National brand fund |
| Total Investment Range | $247,600 – $573,300 | Includes build-out, inventory, working capital |
The investment range of $248K–$573K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (3% of Gross Sales during the first six months of operations; and (ii) the greater of 6% of Gross Sales or $500 per week beginning in your 7th month of operations and thereafter.) and marketing fee (Up to 4% of Gross Sales (Currently, 1.5% of Gross Sales)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $49,500 | $49,500 |
| Travel/Living Expenses While Training | $1,000 | $9,000 |
| Real estate/rent and deposit | $7,500 | $30,000 |
| Leasehold Improvements | $50,000 | $175,000 |
| Buildout Management | $10,000 | $25,000 |
| Equipment and Small Wares | $50,000 | $125,000 |
| Mill Works and Furniture | $8,000 | $40,000 |
| Signage | $5,000 | $25,000 |
| Business Management and Technology System & Technology Fee (3 months) | $6,500 | $8,000 |
| Office Supplies | $500 | $2,000 |
| Licenses and Permits (Not including liquor license) | $500 | $2,000 |
| Legal and Accounting | $2,000 | $7,500 |
| Dues and Subscriptions | $100 | $300 |
| Utility Deposits | $0 | $3,500 |
| Insurance | $500 | $3,000 |
| Initial Inventory | $5,000 | $7,000 |
| Grand Opening Marketing & Local Area Marketing (3 months) | $21,500 | $21,500 |
| Additional Funds—3 months | $30,000 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 10% of the amount of the future, then applicable system franchise fee or $5,000, whichever is greater |
| Renewal Fee | 10% of our then-current initial franchise fee |
| Technology Fee | Currently $500 per month (anticipated to increase to $600 per month) |
| Audit Fee | The costs of the audit |
| Local Advertising, Marketing, and Promotional Expenditure | Currently $500 per month but may increase up to a maximum of $1,500 per month upon 90 days’ notice. |
| Cooperative Marketing Fees | As determined by us and 50% or more of the participating Restaurants in the Cooperative Marketing Program, not to exceed 2% of Gross Sales. |
| Late fee | 10% of the amount due |
| Interest on late payments | 1.5% per month |
| Onsite Training Travel Reimbursement | Up to a maximum of $5,000 |
| Additional training fee | Then-current fee, which will not exceed $500 per day |
| Pre-Opening Additional Initial Training Fees | $1,000 per additional trainee plus your out-of-pocket expenses, including transportation, food and lodging. |
| Post-Opening Additional Initial Training Fees | Our out-of-pocket expenses, for transportation, food and lodging for each of our employees who provide Post-Opening Training at your Restaurant location. |
| Operating Manual | $250 |
| Alternative Supplier Evaluation Fees | $500 application fee plus our costs incurred in evaluating the alternative supplier. |
| Temporary Key Manager | Currently, $500 per employee or agent for each full or partial day, plus their travel and living expenses plus our actual costs and expenses. |
| Temporary Management | 5% of the Restaurant’s Gross Sales during the period of management, plus any direct out of pocket costs and expenses. |
| Seminar and Convention Fee | Then-current attendance fee |
| Licenses and permits | Various amounts |
| Sanitation and Food Safety Audits | Cost of the inspection. |
| New Product and Supplier Testing Fees | Actual cost of inspection testing; $1,000 must be paid as a deposit before facility inspection. |
| Costs and attorneys’ fees, and expert fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
| Insurance | Will vary according to coverage and area |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 3 weeks (50 classroom hours, 70 on-the-job hours) |
| Classroom Training | 50 hours |
| On-the-Job Training | 70 hours |
| Training Location | Charlottesville, Virginia, or another designated location, including Sticks Kebob Shop Restaurants around the country. |
| Additional Training | We may require you or your Controlling Person to attend supplemental or additional training programs, with a fee not exceeding $500.00 per training class. If you request additional training for new or replacement personnel, you must pay a fee of up to $500 per day per employee, plus our out-of-pocket expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected, Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Typically a 1-to-3-mile radius around your Restaurant, or a 2-block to 1-mile radius in a Central Business District. |
| Description | The boundaries of your Territory may be described in terms of zip codes, streets, landmarks (both natural and man-made) or county lines, or otherwise delineated on a map. You will not receive an exclusive territory because the franchisor reserves the right to open Restaurants at Non-Traditional Sites within your physical territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Ten years |
| Renewal Term | One additional ten-year term |
| Renewal Fee | 10% of our then-current initial franchise fee |
| Renewal Conditions | Not be in material default on franchise, supplier or affiliate agreements; Pay a renewal fee; Maintain possession of Restaurant premises or secure suitable alternative, refurbish Restaurant or relocate to alternative suitable site; Execute then current standard Franchise Agreement, which may be materially different from the current form of franchise agreement. |
| Transfer Fee | 10% of the amount of the future, then applicable system franchise fee or $5,000, whichever is greater |
| Transfer Conditions | Franchisee and owners must not be in default; proposed transferee must meet franchisor standards; proposed transferee not engaged in competing business (except other Sticks Kebob Shop Restaurants); proposed transferee signs current standard franchise agreement; proposed transferee completes required training; proposed transferee refurbishes the Restaurant if requested; transfer fee is paid; and the agreement is terminated by mutual termination agreement. |
| Termination for Cause | The franchisor may terminate for cause, including material misrepresentation, failure to lease/purchase an approved location within 6 months, failure to open within 12 months, bankruptcy, abandonment, lease termination, felony conviction, under-reporting gross sales, violation of restrictive covenants, child labor law violations, failure to pay audit-disclosed amounts, failure to dispose of a deceased/disabled person's interest, repeated non-compliance, asset seizure, or failure to correct public health/safety threats. |
| Non-Compete Period | Two (2) years |
| Non-Compete Details | For two (2) years after termination or expiration, you will not own or be engaged in any Competitive Business within ten (10) miles of your Restaurant's location or any other Sticks Kebob Shop Restaurant, excluding ownership of less than ten percent of publicly traded stock. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | At all times that your Restaurant is open for business, it must be under the personal, on-premises supervision of either you, your Controlling Person, your Key Manager, or a trained attendant. The Controlling Person must have at least a 10% ownership interest and authority over all business decisions. The Key Manager is not required to have an ownership interest. |
| Required Suppliers | You must purchase all products and services required for the operation of your Restaurant from suppliers that we have identified and approved as meeting all of our specifications and standards or from us directly. |
| Supply Restrictions | We may develop certain proprietary products that you must purchase from us and offer for sale at your Restaurant. Currently, we specify brands and specifications for certain products that you must purchase, such as sauces and beverages. Those brands of products are available from multiple suppliers. We do not currently require you to obtain them from any specific or designated supplier or source, but we reserve the right to designate an exclusive supplier in the future. |
| Franchisor Revenue from Suppliers | We have not derived any revenue from required franchisee purchases or leases but may do so in the future. For the fiscal year ending December 31, 2020, we derived no revenue in the form of rebates from manufacturers or vendors as a result of required purchases by franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We and our affiliates do not offer direct or indirect financing arrangements for any purpose in establishing or operating your Restaurant. We and our affiliates do not guarantee your promissory note, lease, or any other obligation you may make to others. |
Sticks Kebob Shop Franchise Earnings — Item 19
Average Revenue
$1.1M
Median Revenue
$1.1M
Revenue Range
$1.1M – $1.1M
Sample Size
3 units
Past financial performance does not guarantee future results. Individual results will vary.
Sticks Kebob Shop Litigation & Risk Flags
Clean Litigation RecordSticks Kebob Shop has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Sticks Kebob Shop System Growth
Total Units
3
Franchised
0
Company-Owned
3
Sticks Kebob Shop currently operates 0 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 0 | 0 |
| 2020 | 0 | 0 | 0 |
| 2021 | 0 | 0 | 0 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
0
Net Income
$-2
Total Assets
$26K
Audited by MONFALCONE & GARRIS for year ending December 31.
Sticks Kebob Shop Franchise — FAQ
The total investment to open a Sticks Kebob Shop franchise ranges from $247,600 to $573,300, per their Franchise Disclosure Document. This includes the initial franchise fee of $49,500. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Sticks Kebob Shop charges a royalty fee of 3% of Gross Sales during the first six months of operations; and (ii) the greater of 6% of Gross Sales or $500 per week beginning in your 7th month of operations and thereafter. of gross sales, plus a Up to 4% of Gross Sales (Currently, 1.5% of Gross Sales) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Sticks Kebob Shop Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Sticks Kebob Shop to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Sticks Kebob Shop franchise owners report average revenue of $1.1M and median revenue of $1.1M. This is based on a sample of 3 units. Past performance does not guarantee future results.
Sticks Kebob Shop has been franchising since 2021. The FDD shows an investment range of $247,600-$573,300, a 3% of Gross Sales during the first six months of operations; and (ii) the greater of 6% of Gross Sales or $500 per week beginning in your 7th month of operations and thereafter. royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $49,500 and the total investment ranges from $247,600 to $573,300 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Sticks Kebob Shop and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Sticks Kebob Shop or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com