About Village Inn Franchise
Village Inn is a sit-down family dining restaurant franchise operated under the VI BrandCo, LLC system.
Franchisees operate full-service, mid-scale family restaurants that feature a variety of menu items for all meal periods, specializing in pancakes, omelets, skillets, eggs, and other popular breakfast items.
The restaurants serve breakfast, lunch, and dinner to families and individuals, competing directly with national chains, fast food establishments, and locally based restaurants offering similar menu items.
Village Inn Franchise Cost & Fees
Minimum Investment
$1.1M
Average Investment
$1.9M
Maximum Investment
$2.7M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 3.0% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Not more than 0.5% of Gross Sales (may be increased by 0.25% once per year, max 2 increases during term unless 75% of franchisees agree) | National brand fund |
| Total Investment Range | $1,099,000 – $2,745,000 | Includes build-out, inventory, working capital |
The investment range of $1.1M–$2.7M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (3.0% of Gross Sales) and marketing fee (Not more than 0.5% of Gross Sales (may be increased by 0.25% once per year, max 2 increases during term unless 75% of franchisees agree)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Real Estate Occupancy | $120,000 | $160,000 |
| Furniture, Fixtures, Equipment, and Signage | $200,000 | $585,000 |
| POS, Back Office Computers | $25,000 | $35,000 |
| Construction Costs | $450,000 | $1,485,000 |
| Pre-Opening Costs | $80,000 | $120,000 |
| Inventory | $10,000 | $20,000 |
| Smallwares | $19,000 | $35,000 |
| Insurance - Liability Insurance | $15,000 | $25,000 |
| Insurance - All Risk Property Insurance | $0 | $0 |
| Insurance - Workers Compensation | $0 | $0 |
| Training Costs and Opening Assistance Costs | $65,000 | $110,000 |
| Cash or Cash Equivalent Reserve | $25,000 | $30,000 |
| Additional Funds for First Three Months (per month average) | $50,000 | $100,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 |
| Renewal Fee | $5,000 (pro-rated at $500 per year of renewal term) |
| Technology Fee | $1,500 per 3-year term per restaurant (Meraki Security Appliance) |
| Audit Fee | Cost of audit (due only if audit shows understatement of more than 3% of Gross Sales) |
| Local Marketing | Not more than 1% of Gross Sales (combined max with Marketing Fee of 2%) |
| Training Costs and Opening Assistance Costs | $65,000 to $160,000 |
| Additional Training Fees and Costs | Reasonable fee determined by franchisor |
| Extraordinary Operating Assistance | Actual costs incurred by Village Inn |
| Interest | 3% greater than publicly announced prime rate |
| Late Charge | 5% of amount past due |
| Operational Management Fee | 7% of Gross Sales plus Village Inn Expenses |
| Location Assistance | $115 to $300 per report |
| Electronic Cash Register and Computer System Change Fee | $50 (current fee) |
| Alternative Supplier Fee | Not to exceed $5,000 |
| Extra Manuals | $12 to $110 per manual |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 10 to 12 weeks |
| Classroom Training | 0 hours (all training is on-the-job) |
| On-the-Job Training | 495 to 550 hours |
| Training Location | A certified training restaurant in Colorado or other training restaurant specified by franchisor |
| Additional Training | Periodically during the term, but not more than once a year, franchisor may require refresher or additional training courses. An on-site opening assistance team of at least 10 persons is provided for a minimum of 18 business days during pre- and post-opening period. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Three-mile radius of the franchised location |
| Description | Village Inn will not license or operate another Village Inn Restaurant within a three-mile radius of the franchisee's location (Franchise Area). However, franchisee does not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, other channels of distribution, or competitive brands controlled by franchisor, including the Internet. Village Inn may own or operate a directly competitive restaurant within the Franchise Area under certain conditions, and reserves the right to sell food and merchandise through other channels of distribution. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 5 years, 10 years, or a term mutually agreed upon based on existing lease |
| Renewal Fee | $5,000 (pro-rated at $500 per year of renewal term) |
| Renewal Conditions | Provide 6-12 months prior written notice; evidence of right to possess location; not be in default and no notice of default within prior 3 years; sign then-current franchise agreement; pay renewal fee; satisfy eligibility requirements for new franchises; upgrade or remodel restaurant; sign general release of claims |
| Transfer Fee | $5,000 (except transfers to spouse or children) |
| Transfer Conditions | Pay all obligations due; not in default; proposed transferee must qualify; transfer fee paid; training arranged; release signed; current agreement signed by new franchisee or assignment for remainder of term; location upgraded |
| Termination for Cause | Non-payment of fees (7 days to cure); violations of other terms (15 days to cure or commence cure); non-curable defaults include bankruptcy, unauthorized transfer, foreclosure, felony conviction, three defaults in 12 months |
| Non-Compete Period | 1 year after termination or expiration |
| Non-Compete Details | Subject to applicable state law, no involvement in a food service business that derives 25% or more of gross income from the sale of whole pies and/or breakfast food items within 4 miles of the Licensed Location, within 4 miles of any other Village Inn restaurant, or within any territory granted under a Development Agreement |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisee must designate a Director of Operations who is approved by Village Inn, successfully completes the required training program, and is primarily responsible for operations. In addition, franchisee must employ at least two full-time managers approved by Village Inn who have completed the manager training program. One of the three individuals must be designated as General Manager responsible for direct on-premises day-to-day supervision. The Director of Operations may be the General Manager but cannot serve as GM for more than one franchise restaurant. Neither the General Manager nor the Director of Operations is required to hold any equity interest in the franchisee. |
| Required Suppliers | Pies must be purchased from a Village Inn approved vendor (Legendary Baking or approved alternate). POS System must be NCR Corporation Aloha system. |
| Supply Restrictions | Franchisees must purchase and sell only pies made by a Village Inn approved vendor. All signs, graphics, menus must conform to Village Inn specifications. Village Inn reserves the right to establish restrictive sourcing programs for other goods and services. |
| Franchisor Revenue from Suppliers | In fiscal year 2021, Village Inn did not derive revenue from pie sales by franchisees, but reserves the right to earn revenue from approved suppliers in the form of rebates, commissions, or other compensation. Village Inn negotiates volume discounts or rebates with certain suppliers, usually ranging between 1% and 5%. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
Village Inn Franchise Earnings — Item 19
Village Inn does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Village Inn 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.
Village Inn Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Bankruptcy History DisclosedA bankruptcy disclosure is present in this FDD.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Village Inn System Growth
Total Units
117
Franchised
96
Company-Owned
21
Village Inn currently operates 96 franchised locations and 21 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 2 | 183 |
| 2020 | 38 | 83 | 138 |
| 2021 | 1 | 22 | 117 |
Transfers: 4 | Closures: 22
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$219.7M
Total Assets
$204.4M
Audited by Schechter, Dokken, Kanter, Andrews & Selcer, Ltd. for year ending January 2, 2022.
Village Inn Franchise — FAQ
The total investment to open a Village Inn franchise ranges from $1,099,000 to $2,745,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Village Inn charges a royalty fee of 3.0% of Gross Sales of gross sales, plus a Not more than 0.5% of Gross Sales (may be increased by 0.25% once per year, max 2 increases during term unless 75% of franchisees agree) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Village Inn 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 Village Inn to ensure you have the most up-to-date version.
Village Inn does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Village Inn has been franchising since 2021. The FDD shows an investment range of $1,099,000-$2,745,000, a 3.0% of Gross Sales royalty, and no Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $40,000 and the total investment ranges from $1,099,000 to $2,745,000 depending on location size and market. A minimum of $25,000 in liquid capital is required. 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 Village Inn and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Village Inn or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com