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The MOOYAH 2021 FDD: What Interested Franchise Owners Need To Know

Franchise Disclosure Documents can be dense and difficult to digest. Here are some key things to keep in mind before diving into the “better burger” brand’s 2021 document.

MOOYAH Burgers, Fries & Shakes, the 88-unit “better burger” franchise, isn’t holding anything back when it comes to its Franchise Disclosure Document (FDD). At a time when aspiring business owners are more stringent than ever about the brands they choose to invest in, MOOYAH’s thorough and honest FDD gives potential Franchise Owners a transparent glimpse into the company’s operations.

To say FDDs are dense documents is an understatement. They are often hundreds of pages long and filled with business jargon, hence the reason why franchisors are required to give candidates two weeks to review them and often recommend doing so with an attorney.

If you’re interested in franchising with MOOYAH, here are some things to look out for when reviewing the FDD.

Transparency and Depth of Information

MOOYAH prides itself on being upfront in its FDD. The good, the bad and the ugly — it’s all on the table. Although it adds more details to an already lengthy document, the information can be priceless to a Franchise Owner who is about to make a large business investment.

“The fact that we’ve made the commitment to publish the data has actually been helpful because there are plenty of brands that do not publish an Item 19, or you can’t discern their Item 20 or Item 7,” said Mike Sebazco, Vice President of Operations at MOOYAH. “A partnership has to be based on trust and transparency. We get MOOYAH may not be for everyone, so we just want prospects to make the most educated decision as they go through the process.”

Financial Requirements

Although MOOYAH’s financial requirements for potential Franchise Owners have not changed, this is some of the most important information to review before making a further commitment.

The total initial investment to own a MOOYAH franchise ranges from $551,918 – $715,161, including a $40,000 franchise fee. Franchise Owners need to have a net worth of at least $500,000 and $200,000 in liquid capital. 

“Most folks in our discovery system exceed these requirements,” said Scott Mellon with MOOYAH Development. “The FDD has allowed us to focus our bandwidth on multi-unit operators to properly grow more trade areas across the country. When the information is fully and accurately presented to them like this, they can make a better decision.”

Territory Exclusivity

One topic many Franchise Owners are anxious to learn more about is exclusivity and how nearby locations could impact future growth. Although MOOYAH doesn’t automatically provide exclusivity in its franchise agreements, the brand is not opposed to doing so for Franchise Owners willing to commit to a larger investment. 

“We’re more than willing to provide exclusivity, but there needs to be a commitment on behalf of the Franchise Owner to develop multiple units and do so on a schedule,” said Mellon. “The reason we don’t blanket offer exclusivity is because that can get in the way of building out a market.”

Financial Information About Top and Low Performers

Item 19 is a chance for franchisors to answer the question every franchise candidate has on their mind: “How much money can I make with this brand?” Also referred to as earnings claims, the Item 19 shows just how profitable or unprofitable various units within the franchise are. Some brands don’t include an Item 19 in the FDD at all — MOOYAH is not one of those brands.

Those reviewing the Item 19 will be drawn to numbers from the top and bottom performers as they think about the best and worst case scenarios. The average gross sales across all MOOYAH locations is $863,252*, and the top quartile has an average unit sales volume of $1,249,761* per location. These locations are also referred to as the Million Dollar Club. As with any brand, there are locations performing at the lower end of the spectrum, but MOOYAH’s corporate mentorship does its best to provide those Franchise Owners with the support needed to improve their sales.

“We have nothing to hide, and the Item 19 gives us more freedom to discuss real numbers. When someone is in the bottom 25%, it’s most likely an operations issue that we always address head on with the Franchise Owner. Overall, we have savvy investors approaching us, and we can use our FDD to show them what they can do with the MOOYAH location whether they rise to the top or not.”

The brand is actively looking to expand in Dallas, Houston, Las Vegas, Columbus, Tampa, Orlando, Phoenix, Raleigh, Nashville, Atlanta and Richmond.

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*This data is reported in the Item 19 of the 2021 FDD. More information may be found within the official document.