Do you want to open a restaurant business by buying Frenchy’s chicken franchise? If YES, here is how much it cost to open a Frenchy’s chicken franchise successfully. Frenchy’s Chicken is a restaurant chain in Houston, Texas selling Louisiana Creole cuisine. It was established in 1969 by Percy “Frenchy” Creuzot Jr.
The restaurant’s Creole-seasoned chicken is a “best of” winner in several publications year after year. Houston expats make stopping at Frenchy’s a priority when they return home. Houston native Beyonce sings about it. However, even with its legion of fans and hometown support, Frenchy’s has struggled to expand beyond its original Scott Street store; two previous attempts to franchise the brand failed.
But its luck might soon change. With a dedicated franchise development arm and a replicable business model in place, the brand is growing again—albeit at a measured pace. In the Frenchy’s system, “measured” means restricting its franchise sales to locations in the greater Houston area. Since 2013, eight franchisees have opened 18 stores. The chain is on track to open another 30 this year.
The manufacturing company today supplies retailers like H-E-B, Fiesta Foods, Foodtown, and Sellers Bros. with frozen and refrigerated products, such as its signature Frenchy’s Creole Hot Sausage and Auntie’s Rice Dressing. Also note that the company supplies Creole products and ingredients to several Houston-area restaurants.
Financial Requirements for Opening a Frenchy’s Franchise
- Net worth of at least $1 million
- Liquid Assets greater than $500,000 (Liquidity being defined as cash or any asset that could be converted to cash within ten business days)
- Commitment for a minimum of 3 stores.
- Proven experience with owning or operating a restaurant or retain a business partner who has the necessary experience.
- Ability to satisfactorily pass background checks for the following:
- Reasonable credit worthiness,
- No criminal convictions (last 10 years),
- No history of extensive litigation, and
- Satisfactory motor vehicle report.
- Commitment to protect and grow the Frenchy’s brand.
- Commitment to exceptional customer service.
Steps on How to Open a Frenchy’s Franchise
Currently, Frenchy’s continues to turn would-be franchisees down on an almost weekly basis while working with new and existing franchisees to find the right locations in Houston—which is easier said than done. However, you can try your luck by following the steps outlined below:
- Determine the amount you have to invest in a Frenchy’s franchise. This financial evaluation includes totalling your personal net worth and your available liquid assets.
- Arrange your financial information and income tax records and meet with a business lender to prequalify for a franchise loan.
- Determine the focus for your Frenchy’s franchise. Fast-food offerings with Frenchy’s include a sausage business or a combination store with Frenchy’s and the sausage supplies operations at the same location.
- Choose the desirable geographic locations for your franchise restaurant and research the markets for fast food in these areas using business resources, including newspapers and magazines, available on the Internet.
- Request a copy of Frenchy’s corporate franchise information and the federally required disclosure document by using the request form on the corporate website. Examine the details included in this paperwork. Some states also require separate disclosure statements. Use the link to the state resources on the Federal Trade Commission’s franchise website. Federal law requires presenting the mandatory disclosure at least 14 days before you sign the franchise agreement or pay fees and make deposits.
- Carefully complete the corporate application and wait for an invitation for an interview. During the waiting period, Frenchy’s corporate officers evaluate your financial assets and conduct background checks.
- Participate in an extended interview with the corporation representatives and participate in a restaurant experience to evaluate your ability to take charge of a franchise operation. If you have prior restaurant or fast-food management experience, this requirement may be waived. This interview determines your franchise qualifications.
- Hire an attorney with franchise experience to evaluate the franchise agreement and the disclosure statements for potential problems.
- Select the site for your franchise restaurant and negotiate the purchase of the franchise with the Frenchy’s.
- Write the corporate-required marketing plan for your restaurant and develop a business plan for your new store. Frenchy’s corporate representatives help guide in developing these plans.
- Submit the site registration for your restaurant and pay Frenchy’s the required funds for the site evaluation. Corporate representatives assist with completing the registration request.
- Apply for your franchise loan and build your restaurant.
While the commissary model currently used by Frenchy’s solves some problems, it presents others by limiting how far Frenchy’s can expand. Creuzot says the company can produce the product but does not yet have a distribution system in place to take it outside of Houston. Though Houston is statistically the fastest-growing metropolitan area in the U.S., it lacks the density of other hot markets. However, Frenchy’s has a quality product, and their service is friendly and efficient.