Newk’s Eatery Franchise FDD, Profits & Costs (2025)
Newk’s Eatery, established in 2004, has carved a niche for itself in the fast-casual dining sector by offering a diverse menu that includes fresh salads, sandwiches, soups, and pizzas. The brand differentiates itself by its commitment to handmade, wholesome food that’s authentically rooted in Southern hospitality, a feature that resonates deeply within the local communities it serves.
With its headquarters based in Jackson, Mississippi, Newk’s Eatery has grown to operate and franchise, emphasizing quality and freshness by preparing over 30 fresh ingredients daily in-house, without the use of fryers or microwaves.
Newk’s Eatery began franchising shortly after its establishment in 2004. The brand quickly expanded beyond its original locations, offering franchise opportunities to entrepreneurs interested in bringing Newk’s unique approach to fresh, handmade meals to their local communities.
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Initial Investment
How much does it cost to start a Newk’s Eatery franchise? It costs on average between $1,014,000 – $1,337,000 to start a Newk’s Eatery franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $40,000 |
| Business Licenses & Permits | $1,500 to $3,000 |
| Leasehold Improvements | $422,500 to $587,000 |
| Fixtures, Furnishings & Equipment | $415,000 to $527,000 |
| Architect Fees | $34,850 to $48,850 |
| Rent and Utility Deposits | $8,000 to $16,000 |
| Other Professional Fees | $5,000 to $5,500 |
| Insurance Deposit | $5,000 to $10,000 |
| Initial Inventory of Food and Paper Supplies | $12,500 to $18,000 |
| Training Expenses | $22,500 to $30,000 |
| Grand Opening Advertising | $15,000 |
| Additional Funds (for initial period of operations) | $32,500 to $40,000 |
| Total | $1,014,350 to $1,337,350 |
Average Revenue (AUV)
How much revenue can you make with a Newk’s Eatery franchise? A Newk’s Eatery franchised restaurant makes on average $2,224,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $838,000 yearly revenue for similar sandwich franchises. Below are a few Newk’s Eatery competitors as a comparison:
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Newk’s Eatery Franchise Disclosure Document
Frequently Asked Questions
How many Newk’s Eatery locations are there?
As of the latest data, Newk’s Eatery operates approximately 95 locations across the United States. The exact breakdown between company-owned and franchise-owned locations is not publicly disclosed.
What is the total investment required to open a Newk’s Eatery franchise?
The total investment required to open a Newk’s Eatery franchise ranges from $1,014,000 to $1,337,000.
What are the ongoing fees for a Newk’s Eatery franchise?
The ongoing fees for a Newk’s Eatery franchise include a royalty fee of 5% of gross sales, which is paid to the franchisor for continued use of the brand and support services.
Additionally, franchisees contribute 2% of gross sales to the brand’s marketing fund, which is used to support advertising and promotional initiatives at both the national and regional levels.
What are the financial requirements to become a Newk’s Eatery franchisee?
To become a Newk’s Eatery franchisee, you must have a minimum net worth of $3 million to demonstrate overall financial stability and a minimum of $1.5 million in liquid capital to ensure sufficient funds for the initial investment and operational needs.
How much can a Newk’s Eatery franchise owner expect to earn?
The average gross sales for a Newk’s Eatery franchise are approximately $2.22 million per location. Assuming a 15% operating profit margin, $2.22 million yearly revenue can result in $333,000 EBITDA annually.
Who owns Newk’s Eatery?
Newk’s Eatery franchise is owned by Sentinel Capital Partners, a private equity firm specializing in investments in mid-market companies. Sentinel acquired Newk’s Eatery to support its growth and expansion in the fast-casual dining sector, leveraging its expertise in scaling franchise brands.
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