Perkins^® Restaurant & Bakery

Perkins Restaurant & Bakery's core concept offers a wide variety of distinctive proprietary products and premium bakery goods for every occasion. Meals are sold at moderate prices and served at the table by a friendly staff in a pleasant, wholesome environment.

Operating Philosophy

• Extend the more than 40 year reputation of the Perkins brand with quality full service restaurants in convenient locations.
• Maintain consistency, reliability and leadership in the full service dining segment.
• Expand upon Perkins Restaurant & Bakery's breakfast heritage by offering signature items as well as regional favorites across all dayparts.
• Distinguish the brand with unique in-store bakeries offering proprietary fresh-baked items including Mammoth Muffins^®, cookies, pies, brownies and cinnamon rolls.

Development Specifications

• Trade area population of 25,000 - 35,000 (may be countywide)
• Average daily composite traffic (24 hrs.) of 25,000 vehicles
• Typically 4,200 - 6000 square feet building footprint
• 50,000 - 60,000 square feet of land
• Freestanding conversions or endcaps

Liquidity Requirements
Prospective franchisees must have a $750,000 (U.S.) net worth, excluding primary residence and vehicles, with $500,000 (U.S.) liquidity.

Investment
Based on our franchisees' reported prior year actual costs, estimated initial investment and other financial obligations^1* for a prototypical building ranging in size from 130 to 217 seats are as follows:

1.        Estimates EXCLUDE site preparation costs, architect/engineer fees, permits and tap fees, which vary significantly from site to site and cannot be reasonably estimated.

2.        If the land or building is leased, the initial rent will vary from location to location but can be anticipated to range from $70,000 to $130,000 annually. These numbers also do not include License Fee, Construction Management Program, interim interest during construction, licenses, insurance, advertising, inventory, small wares, uniforms, working capital or training expenses, which may range from a low of $209,600 to a high of $292,300.

3.        Also EXCLUDED are (a) three-month start-up expenses including food and labor costs, benefits, utilities, administrative and other expenses ranging from $350,000 to $600,000 as estimated from licensees' financial statements, and (b) three-month royalty fees and marketing contributions ranging from $20,000 to $43,200.

*U.S. figures

Fees
For each of your first two restaurants, fees are as follows:

• $40,000 (U.S.) initial license fee.
• Fee is payable $5,000 (U.S.) when application is submitted and the balance upon approval of franchise application.
• 4% of sales monthly royalty fee for the 20-year duration of the license.
• 3% of sales monthly advertising fee for the 20-year duration of the license.