Franchise Program FAQs
Damon's offers qualified restaurant professionals the opportunity to prosper with a unique restaurant concept and a highly efficient business system. Our program can help make you successful, but your effort will be the determining factor. You must be prepared to work hard, follow our format, and meet the goals and performance objectives set for your business. The only offering for Franchise sale is contained in the Uniform Franchise Offering Circular.
The following questions and answers are designed to help you accurately assess our Franchise Program and to make a fully informed decision concerning our business opportunity.
1. Q. How much equity is normally required by Damon's to be injected into a project?
A. The overall debt/equity structure of all projects is reviewed by our Site Review Committee on a site-by-site basis. However, 20 - 25% equity would not be unusual as a requirement from a lender or Damon's.
2. Q. Is it possible to open a Damon's Franchise for less investment than the totals shown?
A. Yes. Select Damon's Grill locations have been converted from existing restaurants for less cost. The variation will obviously depend upon the location selected.
3. Q. Does Damon's help with site selection?
A. Yes. We are very much involved in site analysis. Whether a new facility or an existing restaurant, we work hand-in-hand with you to pick the best available site.
4. Q. What size specifications are required for a Damon's Grill restaurant?
A. As a general rule, we recommend a facility of not less than 5,500 nor more than 6,500 square feet. We have plans and layouts for various building configurations.
5. Q. What about the sale of alcoholic beverages?
A. A full-service license for the sale of such beverages by the glass is an integral part of your operation. It will be necessary for you to apply for such a license, and we can guide you in those states where Damon's has existing operations.
6. Q. Must I buy my equipment from you?
A. No. Necessary equipment may be purchased by a Franchise Owner from individual dealers, distributors and/or manufacturers based upon the specifications we provide. However, the problem of coordinating specifications, delivery, and installation of various items can be significant if ordered individually. We have designed a procedure to eliminate this confusion. Included in the equipment package price is the cost of design, research and development, scheduling, and, if desired, staging warehousing and shipping preparation to ensure a coordinated unit opening, all purchased directly from nationally-known equipment suppliers.
7. Q. How long does my Franchise Agreement last?
A. The initial term is 10 years after which you may renew for 3 additional option periods of 5 years, subject to lease availability, at the current Franchise provisions.
8. Q. Do I receive training by Damon's?
A. Franchisees, and their designated managers, must attend and successfully complete the training program. The cost of this initial training is included in your Franchise Fee. Franchisees pay their own costs, and those of their designated managers, for transportation, lodging and meals.
9. Q. Do I receive assistance in opening my Damon's Grill restaurant?
A. Yes. In addition to your initial management training period, Operations Specialists and opening teams will work with you in your unit at the time your unit opens.
10. Q. What form of continuing operational guidance will I receive?
A. First of all, you will receive a confidential Damon's Operations Manual covering the many important facets of your restaurant operation. As the manuals are updated, revisions will be made available to you. You will receive periodic visits by our field representatives who will consult with you and offer useful advice and counsel on system elements such as quality control, service, identity, customer convenience, advertising, marketing, merchandise control, training, communication and incentives. Damon's continuously communicates with all Franchisees to assure that your problems are quickly solved.
11. Q. Do I receive guidance on the purchase of foods and supplies?
A. Yes. High-quality products are essential to our concept. Our Purchasing Department has established and will provide a full purchasing program, and will supply you a list of all our National Accounts which will enable you to order high-quality products in sufficient volume at the lowest competitive prices.
12. Q. What is the charge for the continuing services and Royalty Fee?
A. 4% of Gross Sales.
13. Q. Am I given territorial protection?
A. Yes. We will establish a marketing territory, adjusted to market conditions and population density surrounding your location, within which no other Damon's Grill Restaurant will be developed.
14. Q. Can I sell my Damon's Grill Franchise?
A. Yes. Your business, like any other, can be sold to a buyer approved by Damon's. There is a transfer fee for legal, administrative, and training expenses to effect the transfer.
15. Q. How soon can I be in operation once I have been accepted as a Franchisee?
A. Location is the determining factor. On an available location, construction can be completed in 90 to 180 days. Remodeling of an existing restaurant can be done in 60 to 120 days. If you purchase an operating unit, you must first complete training.
16. Q. What is the total investment for a Damon's Grill Franchise?
A. Investments vary, depending on location, market, and whether it's a conversion or freestanding unit.
We have attempted to answer the most commonly asked questions about Damon's Franchise Program. We're sure you may have a few questions we haven't covered, so please allow us to give you further details about our program. You may reach us by calling (614) 442-7900.
Please remember the information contained in this document is of a general nature; the Uniform Franchise Offering Circular is the only official offering document for the acquisition of a Damon's Grill Franchise.