Perkins Franchise FDD, Profits & Costs (2025)
Perkins franchise, with its roots stretching back to 1958, stands as a testament to an enduring American culinary tradition.
Initially founded as a pancake house, Perkins has expanded its menu over the decades to include a wide array of breakfast, lunch, and dinner options, catering to a broad customer base with its classic comfort foods and contemporary culinary specialties.
Headquartered in Atlanta, GA, the chain began franchising, marking the start of its expansion and evolution into the Perkins Restaurant & Bakery known today.
The franchise is renowned not just for its all-day breakfast offerings but also for its in-house bakery, which contributes significantly to its appeal by providing a variety of pies, muffins, and other baked goods, made fresh daily.
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Initial Investment
How much does it cost to start a Perkins franchise? It costs on average between $1,184,000 – $3,290,000 to start a Perkins franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property. Perkins offers 2 types of franchises:
| Franchise Type | Initial Investment Range |
|---|---|
| Perkins Restaurant and Bakery (Nontraditional Location) | $1,183,715 – $2,836,465 |
| Perkins Restaurant and Bakery (Leasing land/building and purchasing equipment/signs) | $1,534,715 – $3,290,465 |
We are summarizing below the main costs associated with opening a Perkins Restaurant and Bakery (Leasing land/building and purchasing equipment/signs). For more information on the costs required to start a Perkins franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount (Traditional Franchise) |
|---|---|
| Initial Franchise Fee | $40,000 |
| Training Fee and Travel and Living Expenses While Training | $97,000 – $119,000 |
| Real Estate – Rent for First 3 months | $20,000 – $60,000 |
| Improvements | $575,000 – $1,967,000 |
| Interest during construction | $25,000 – $30,000 |
| Equipment and Seating | $490,000 – $650,000 |
| Signs and Décor | $53,000 – $82,000 |
| Site Plan/Engineering Drawings | $12,500 – $18,500 |
| Travel Expenses for Opening Guide Meeting | $0 – $750 |
| Smallwares, Small equipment, Opening Inventory and Uniforms | $53,000 – $82,000 |
| POS System | $15,000 – $20,000 |
| Help Desk (total for first 3 months) | $215 – $215 |
| Hardware and Software Components – Computer Security | $2,500 – $3,000 |
| Other Computer and Technology Expenses (first 3 months) | $2,500 – $3,000 |
| Grand Opening Promotion | $4,000 – $10,000 |
| Miscellaneous Opening Costs | $45,000 – $55,000 |
| Additional Funds-3 Months | $100,000 – $150,000 |
| Total | $1,534,000 – $3,290,000 |
Average Revenue (AUV)
How much revenue can you make with a Perkins franchise? A Perkins franchised restaurant makes on average $1,812,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,739,000 yearly revenue for similar breakfast franchises. Below are 10 Perkins competitors as a comparison:
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Perkins Franchise Disclosure Document
Frequently Asked Questions
How many Perkins locations are there?
Perkins Restaurant & Bakery currently operates nearly 300 locations across the United States and Canada. Approximately 90 of these locations are company-owned, with the rest franchised.
What is the total investment required to open a Perkins franchise?
The total investment required to open a Perkins franchise ranges from $1,184,000 to $3,290,000.
What are the ongoing fees for a Perkins franchise?
A Perkins Restaurant & Bakery franchise requires ongoing fees, including a 4% royalty fee on gross sales and a 2% marketing fee. These fees fund brand support, operational guidance, and promotional campaigns to drive customer engagement across locations.
What are the financial requirements to become a Perkins franchisee?
To become a Perkins Restaurant & Bakery franchisee, candidates are expected to have a minimum net worth of $1 million and at least $400,000 in liquid capital.
These requirements ensure that franchisees have the financial stability to support the initial investment, operational costs, and any unexpected expenses that may arise in the course of business operations.
How much can a Perkins franchise owner expect to earn?
The average gross sales for a Perkins franchise are approximately $1.81 million per location. Assuming a 15% operating profit margin, $1.81 million yearly revenue can result in $272,000 EBITDA annually.
Who owns Perkins?
Perkins Restaurant & Bakery is owned by Ascent Hospitality Management, an Atlanta-based company that also owns Huddle House. Ascent acquired Perkins in 2019 with the intent to manage and grow both brands while keeping them distinct in their operations and identity.
Disclaimer
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