Corky’s Ribs and BBQ Restaurants are full-service, family-oriented barbecue restaurants with a dining area, a take-out area, a drive-thru, and catering services. Corky’s serves both lunch and dinner, and the menu includes barbecue, grilled and smoked meats, poultry and seafood, along with BBQ baked beans, fries coleslaw, bread, and onion loaves. Pizza, spaghetti and a selection of desserts are also available.

What is the process of becoming a Corky’s franchisee?

First, a potential franchise prospect either calls or writes requesting franchise information and there is an initial telephone conversation. Following, an information packet, which includes a question and answer summary, an application and other information about Corky’s, is sent to the prospect. Next, there is a follow-up conversation regarding the receipt of the information package and any questions that the prospect may have. Then, the prospect sends in his/her completed application, including a financial statement. After receipt of that information, we conduct an initial approval process. After approval, there is a personal meeting to share additional information, including a Uniform Franchise Offering Circular (UFOC). Next, there is an area development agreement or a license agreement that is executed by both parties, and up-front franchise fees are paid. At that point, we begin the process of site selection and the development of Corky’s.

How large is the initial total investment necessary to open a Corky’s?

The total investment to open a Corky’s is approximately $385,000 - $685,000, exclusive of real estate acquisition and development costs, insurance, and liquor license. Real estate costs can vary widely, depending on such factors as location and whether you retrofit an existing facility or build from the ground up. The initial franchise fee is $50, 000, which is included in the aforementioned total investment costs. If you decide at the time of signing that you want to commit to other stores, the initial fee for those stores would be discounted to $35,000 for the second store, $25,000 for the third store, and remain at $25,000 for each additional store. You would be required to pay a $10,000 reservation fee for each store beyond the first store. That fee will be applied against the franchise fee for each store at opening. The royalties would be 4% for the first three years, 4.5% for the next two years, and 5% after the fifth year. The Uniform Franchise Offering Circular provides more information on these and other related subjects. You will receive the UFOC upon completion and acceptance of your application.

What is the net worth requirement for becoming a Corky’s franchisee?

A single unit franchisee must have liquid assets of $250,000, exclusive of home equity and autos, and must have a total net worth of approximately $500,000.

What is provided for the franchise fees and royalties that are paid?

The franchise fee provides funding for all costs incurred by Corky’s associated with the organization and maintenance of the franchise system. These costs include trademark registration and protection, the process of franchisee selection, new store openings, the training of managers, the process of site selection and evaluation, and assistance in the development of the Corky’s.

Royalty fees provide franchisees with the benefit of the ongoing operating system. This system includes recipes and procedures that enable you to attract and keep your customers. These fees also provide the ongoing support of our management team, system marketing plans, and the development initiatives that enhance the performance of the overall system. In addition, the fees provide the staff necessary to ensure that proper operating standards are maintained in all of the restaurants. All of these services help to enhance the brand awareness that the Corky’s system enjoys. More information is contained in the UFOC.

What territory is available for expansion for a Corky’s, and how does that tie into the development plans for the company versus the franchise system?

Territory is now available for development, with the exceptions of the states of Florida, Louisiana, a 60-mile radius around Memphis, and the previously reserved areas for development by corporate and existing franchisees. We will be happy to discuss this in more detail with you. As part of the market research that we have conducted, we have determined, in general, the population, demographics, traffic counts, income, etc, that are required for development of one or more restaurants.

What type of building should be developed?

There are basically two options. One may elect to build a new prototype building from the ground up, or may find an existing building to retrofit. With either alternative, the lease/buy types of decisions will have to be evaluated.
There are many ways to go about development, and we will provide assistance throughout the process. We will put you in contact with experienced architectural design personnel. Furthermore, as relates to equipment, we will assist with the necessary specifics of layout and design.

Tell me about the training and assistance that is provided in the opening of a Corky’s restaurant.

Corky’s will provide the training for a general manger, assistant managers, and others holding key positions. Prior to the opening of a restaurant, up to a total of four individuals will be provided with six to 12 weeks of intensive training. This training is mandatory for all new licensees and will be done in an existing Corky’s restaurant. There is no charge for this training, as training is included in the franchise fee. However, franchisees will be responsible for salaries, travel, and room and board expenses incurred by trainees. In addition, Corky’s will assist by sending at least one representative to the restaurant for 10 to 14 days during the week prior to, during, and after the opening of the restaurant. We will also assist in developing an opening marketing plan for the restaurant(s).