Perkins Franchise FDD, Profits, Costs & Fees (2024)

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.

Perkins Franchise Stats

Perkins

Number of units: 189 franchises
Initial investment: $1,184,000 - $3,290,000
Average revenue (AUV): $1,812,000

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 TypeInitial 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 ExpenditureAmount (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:

Perkins fdd item 19 extract

This compares to $1,739,000 yearly revenue for similar breakfast franchises. Below are 10 Perkins competitors as a comparison:

Perkins franchise competitors

Perkins Franchise Disclosure Document

Recent Legal Disputes and Litigation

Recent legal disputes involving the Perkins Restaurant & Bakery franchise have highlighted tensions around financial and operational compliance. A prominent case involved 5171 Campbells Land Co. (CLC), a major franchise operator managing 27 Perkins locations in Pennsylvania, New York, and Ohio.

Perkins filed a lawsuit against CLC, alleging over $2 million in unpaid royalties, marketing contributions, and various franchise fees. Additionally, CLC was cited for failing to perform mandated upgrades to its restaurants, a clear violation of the franchise agreement’s operational standards.

In 2019, Perkins terminated CLC’s franchise rights due to these financial and operational defaults. Subsequently, a federal judge issued an injunction ordering CLC to stop using all Perkins branding, including trademarks, signage, and phone numbers associated with the franchise.

With this legal restriction in place, CLC faced a difficult operational path and ultimately filed for Chapter 11 bankruptcy to address its financial challenges.

This legal dispute illustrates the franchise’s commitment to enforcing financial compliance and operational standards across its locations. It also emphasizes the critical need for franchisees to adhere strictly to franchise agreements to maintain brand consistency and financial accountability.

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

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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