Complete investment analysis based on official FDD data
Total Investment
$1,443,890 – $3,581,375
Franchise Fee
$40,000
Royalty Rate
4.0%
The total initial investment to open a Perkins Restaurant and Bakery franchise ranges from $1,443,890 to $3,581,375, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $40,000.
Midpoint estimate: $2,512,632
$40,000
One-time initial fee
The Perkins Restaurant and Bakery franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Perkins Restaurant and Bakery brand and is included in the total initial investment range above.
Royalty Fee
4.0%
of gross revenue
Ad/Marketing Fund
3.0%
of gross revenue
Total Ongoing Fee Burden: 7.0% of gross revenue
Combined royalty and advertising fund contributions before any other fees.
| Fee Type | Rate | Type | Notes |
|---|---|---|---|
| Royalty | 4.0 | PCT | Net Sales includes full price of all merchandise and services (including Catering and delivery) sold, and all other receipts. Payments may be required by EFT. |
| Contribution to Advertising Fund | 3.0 | PCT | Traditional Unit: 3.0% (may increase to 4%, no more than 1% per year). Non-Traditional Unit in Host Facility: 1.0% |
| Local Advertising Requirement | 1.0 | PCT | Must spend minimum 1.0% of Net Sales on qualified local advertising quarterly. May increase to 1.5%. Perkins may require contribution to Fund instead of direct spending. |
| Transfer | 25.0 | PCT | 25% of then-current Initial Franchise Fee for sale or transfer involving >51% ownership. Exception: Within first year, $0 if 100% owned transferee entity, $2,000 if 51-99% owned transferee entity. |
| Interest on Rent | 5.0 | PCT | Payable if more than 15 days late on any rent owed to Perkins |
| Interest on Payments (other than rent) | 18.0 | PCT | Payable if more than 5 days late paying any amount owed to Perkins (other than rent) |
| Management | 8.0 | PCT | Payable while Perkins manages franchise due to franchisee's death or incapacity |
| Liquidated Damages - Breach and Termination | 300000.0 | VARIABLE | Payable if franchisee breaches Franchise Agreement and it is terminated by Perkins. Calculated on average of weekly royalties and marketing contributions during preceding two years. |
| Fees relating to computer system, software, and technology services | 850.0 | FIXED | Helpdesk fee currently $850/year (monthly billing), expected to increase to $1,500/year. Total technology costs range from $349-$500/month inclusive of helpdesk fees. Year-over-year increases not to exceed 100% total over any 5-year period unless material technology changes. May vary for Non-Traditional Units. |
| Central Billing Fee | 10.0 | PCT | Not currently in effect. If Perkins centrally collects supplier fees (gift cards, loyalty programs, online ordering), may charge up to 10% of amounts due to supplier for billing/payment functions. |
| Non-Participation/Non-Reporting Fee | 100.0 | VARIABLE | Assessed for each month not in compliance with System requirements or programs. Escalates from $100 to $300 per month. Either this fee or delinquent report fee applies, not both. |
| Re-evaluation Fee | 350.0 | FIXED | For two or more consecutive failed inspections/operational reviews. Paid for each failed inspection starting with the second failure until satisfactory re-evaluation. |
| Delinquent Report | 10.0 | FIXED | Payable when report is submitted if not delivered to Perkins when due |
| Audit | 12.0 | PCT | Payable if audit shows understatement of Net Sales by 1.5% or more |
| Renewal | 25.0 | PCT | Payable before first day of renewal term. Renewal is for an additional 10-year term. |
| Perkins Performance | 12.0 | PCT | Payable if franchisee fails to perform maintenance obligations, pay creditors, or procure insurance and Perkins does so for franchisee |
| Additional or Refresher Training and Orientation | 300.0 | FIXED | Currently $300/day for additional or refresher training. May change but increases not expected to exceed 25% in any individual year. For new/replacement managers or if required by Perkins. |
| Extension of Opening Deadline or Deadline in Development Schedule | 5000.0 | FIXED | $5,000/month for traditional Unit or $2,500/month for Non-Traditional Unit. Maximum 6-month extension. Separate from Development Agreement Term extension. |
| Extension of Term of Development Agreement | 7500.0 | FIXED | Applies only if extending Development Agreement Term beyond end of Development Schedule. Does not extend individual Restaurant deadlines. |
| Fee for Closing During any Required Hours of Operation | 1000.0 | FIXED | Does not apply to Non-Traditional Units in Host Facilities, which may have alternative hours |
| Rejected Payment Fee | 100.0 | FIXED | For payments rejected due to insufficient funds or other reasons. Includes reimbursement for all costs associated with rejected payment. |
| Lease Review | 2500.0 | FIXED | Up to $2,500 for attorney review of proposed Unit lease if required by Perkins. Payable to Perkins or designated provider. |
| Fees for Financial Report | 12.5 | FIXED | Not currently in place. Expected cost approximately $12.50/month for program service fee, and $50-$100 fee if fail to submit report. Web-based P&L reporting application through designated vendor. |
| Fee for Non-attendance at Conferences | 2500.0 | FIXED | Payable with Royalty for week immediately following missed mandatory conference, unless prior written waiver obtained |
| Unit Hours Modification Fee | 7.0 | PCT | Up to 7.0% of Base Amount. Currently monthly, but not more often than weekly. For existing franchisees who modify Unit hours if certain conditions met. Does not apply to Non-Traditional Units in Host Facilities. |
| Customer Feedback Program | 265.0 | FIXED | Currently $265/year (approximately $22/month). Currently paid by Perkins but may require franchisees to pay in future. Franchisee responsible for any survey offer costs and additional measures if unsatisfactory scores (Mystery Shops, in-store surveys, receipt-back surveys). |
| CrunchTime Labor Scheduling Tool (Includes online Learning Management System) | 250.0 | FIXED | Currently $250/year as pass-through to vendor. Vendor may change fees. Perkins does not charge additional fees for managing payments. |
| Securities Offering Fee | 10000.0 | VARIABLE | For public or private securities offerings. Reimburses Perkins for reasonable costs including legal and accounting fees (subject to applicable law). |
Category
Food & Beverage
Franchise Score
out of 100
Perkins Restaurant and Bakery operates a casual dining restaurant franchise featuring American comfort food, breakfast items, and freshly baked goods. The brand provides full-service dining with an emphasis on homemade quality and family-friendly atmospheres.
Median Revenue
$1,932,353
per year, per location
Mean Revenue
$1,933,346
per year, per location
Estimated Owner Profit
$289,853
per year
Profit Margin
15.0%
of revenue
Estimation method: benchmark
Estimated ROI (Simple Payback): 8.7 years
Based on midpoint investment of $2,512,632 and estimated annual owner profit of $289,853.
Avg. Annual Closure Rate
N/A
Net Unit Growth
-22 units
From 2022 to 2024
| Year | Start | Opened | Closed | Transfers | End |
|---|---|---|---|---|---|
| 2022 | 197 | — | — | — | 191 |
| 2023 | 191 | — | — | — | 183 |
| 2024 | 183 | — | — | — | 175 |
Based on the FDD data, here is a data-driven snapshot of the Perkins Restaurant and Bakery franchise opportunity:
Overall Score
64/100
Moderate opportunity
Est. Payback Period
8.7 yrs
Longer payback
Risk Level
N/A
Insufficient data
Perkins Restaurant and Bakery shows a moderate score across our evaluation criteria. Careful due diligence is recommended. With median unit revenue of $1,932,353 and a combined fee burden of 7.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.
Get the full Perkins Restaurant and Bakery franchise intelligence report with risk analysis, deal-breaker alerts, and detailed financial projections.
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