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Entrepreneur: Start & Grow Your Business

Krystal Restaurants

Hamburgers

Background

Founded: 1932 Franchising since: 1990
1 Union Sq.
Chattanooga, Tennessee 37402
Phone:
(800)458-5912


Franchisor has 115 employee(s); 6 employee(s) in franchise department.

Franchise Growth
Year U.S. Franchises Canadian Franchises Foreign Franchises Company Owned
2005 181 0 0 244

Where Seeking Franchisees
In the U.S. Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North carolina, Oklahoma, South carolina, Tennessee, Texas, United states, Virginia, West virginia

Exclusive territories available.
Territory size: Varies

Costs and Fees

Total investment: $900K-1.3M
Franchise fee: $32.5K
Ongoing royalty fee: 4.5%
Term of agreement: 20 years, renewable


Type of Financing Available
In-House Third Party
Franchise Fee No Yes
Startup Costs No Yes
Equipment No Yes
Inventory No Yes
Accounts Receivable No Yes
Payroll No No

Qualifications
Net worth requirement: $1.2M
Cash liquidity requirement: $600K
Business Experience:
  • Industry experience
  • General business experience

Operations
  • 94% of all franchisees own more than one unit
  • Number of employees needed to run franchised unit: 30
  • Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

Training and Support

Training
  • Available at headquarters: 5 weeks
  • At franchisee's location: 5 weeks

Ongoing Support
  • Newsletter
  • Meetings
  • Toll-free phone line
  • Grand opening
  • Internet
  • Security/safety procedures
  • Field operations/evaluations
  • Purchasing cooperatives

Marketing Support
  • Co-op advertising
  • Ad slicks
  • Regional advertising

Rankings

Franchise 500® rank:
#344 (2006); #279 (2005);