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Below is an in-depth analysis and side-by-side comparison of Fuddruckers vs Krystal Restaurants including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $495,000 - $1,565,000 | $900,000 - $1,300,000 |
Franchise Fee | $35,000 | $32,500 |
Royalty Fee | 5% | 4.5% |
Advertising Fee | .25% | - |
Year Founded | 1980 | 1932 |
Year Franchised | 1983 | 1990 |
Term Of Agreement | 20 years | 20 years |
Term Of Agreement | 20 years | 20 years |
Renewal Fee | $25K | $8.1K |
Business Experience Requirements |
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Experience | ||
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | No/No |
Start-up Costs | No/No | No/Yes |
Equipment | No/No | No/Yes |
Inventory | No/No | No/Yes |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | 6-week training program | - |
Support | Newsletter, Meetings, Grand opening, Internet, Field operations/evaluations | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives |
Marketing | Regional advertising | Co-op advertising, Ad slicks, Regional advertising |
Operations |
53% of all franchisees own more than one unit Number of employees needed to run franchised unit: 40 Absentee ownership of franchise is NOT allowed. (99% of current franchisees are owner/operators) |
Franchisees required to buy multiple units/master licenses; 94% of all franchisees own more than one unit Number of employees needed to run franchised unit: 30 Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | - | Yes |
Canada Expansion | No | No |
International Expansion | Yes | No |
The first Fuddruckers opened in San Antonio, Texas in 1980 with a classic American nostalgia theme. Fuddruckers operates and franchises more than 200 restaurants in the United States, Puerto Rico, Canada and the Middle East. The emphasis today is the same as it was in 1980 - we use only the freshest ingredients. Our restaurants serve only the freshest beef and feature on-premise bakeries where bread and dessert items are baked fresh daily. It's truly a "build-your-own meal" experience.
The Krystal Company is the oldest quick service restaurant chain in the South and the second oldest in the United States. The Chattanooga-based company currently has more than 450 restaurants in Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Texas and Virginia. Founded in 1932, Krystal restaurants have become more than sparkling-clean eateries where friendly employees serve up fresh, delicious food. Krystal has become a cultural icon and an experience that virtually every man, woman and child in the South has shared. Nearly everyone in the region has a Krystal memory. The Krystal brand, and the great food, service, value and setting which it represents, has taken a prominent place in the South's cultural landscape.