Franchise Deep Dive: TGI Friday’s Franchise Costs, Fees, Profit and Data

The over-50-year-old bar and grill franchise is growing across the U.S. and internationally as it works to refresh its brand image.

By Morgan Wood1851 Franchise Contributor

Updated 7:19PM • 06/13/23

LAST UPDATED: June 2023

FRANCHISE WEBSITE: https://tgifridays.com/franchise/

NUMBER OF LOCATIONS: 900+

REPORTED COST TO GET IN: Undisclosed

REPORTED ROI (Item 19): Undisclosed

TGI Friday’s is a bar-and-grill franchise concept that was established in 1965. When Alan Stillman launched the company, it was incredibly successful and one of the only places where young adults could be both relaxed and excited.

TGI Friday’s offers franchises in the U.S. and internationally. Though there are hundreds of units established globally, the brand is taking on a rebrand of sorts, emphasizing its history as a bar. As such, it is seeking franchisees that have prior experience in the restaurant or food business and are interested in opening at least three locations in a relatively short time span.

How Many TGI Friday’s Locations Are There?

There are over 900 TGI Friday’s locations across 50 countries. As it grows and is refreshed, the brand is “embracing and celebrating [its] heritage as a bar. A bar that just happens to serve killer food in an environment that always feels like happy hour on a Friday afternoon.”

While the brand is working to expand, it is focusing on partnering with the right people and bringing ambitious owners into the network to grow in a healthy way.

What Is the TGI Friday’s Business Model?

TGI Friday’s leverages three primary location types: freestanding, mall and inline. While each has its own requirements, the larger strategy works to establish locations in high-traffic areas that are proximal to “evening and late-night generators.” By placing its units close to retail, movie theaters and other restaurant concepts, TGI Friday’s is able to leverage existing demand to grow its own customer base.

The unique requirements of each site type are as follows:

Freestanding

Two or more acres
Complete building signage, pylon and monument direction signs
Excellent ingress and egress from primary frontage road

Mall

Major regional mall, defined as being one million or more square feet of Gross Leasable Area
Complete brand signage, interior/exterior directional signage and main pylon listing
Excellent ingress and egress from primary frontage road

Inline

Complete frontage signing, directional signs and blade signs as needed
Convenient access to site from parking, pedestrian and public transportation

How Much Can TGI Friday’s Franchise Owners Make?

TGI Friday’s does not make its financial representations publicly available.

How Much Does It Cost To Open a TGI Friday’s?

TGI Friday’s does not publish investment specifics, but the franchise development site does note that prospective franchisees should have a net worth of at least $3 million with $1 million in liquidity.

For prospective owners looking to re-franchise existing locations, the net worth and liquidity requirements are the same, and the franchisor notes “$500K per store acquired” and “$300K (liquid) per store acquired,” presumably noting the investment range should an owner choose to re-franchise a number of locations that would exceed the $3 million and $1 million (liquid) requirements.

All franchisees are expected to be driven to develop at least three restaurants.

What Is the Franchise Fee for TGI Friday’s?

TGI Friday’s assesses a $50,000 franchise fee per restaurant.

Who Is the Leadership of TGI Friday’s?

What Helpful Articles Can I Read To Learn More?

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