1. What is the process of becoming an Otter's Franchisee?

First a potential franchise prospect either calls or writes requesting franchise information and there is an initial telephone conversation. Then, an information packet, which includes a frequently asked questions summary, an application and other information about franchising 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 complete application, including a financial statement. After receipt of that information, we conduct the initial approval process.

After approval, there is a personal meeting to share additional information, including a Franchise Disclosure Document (FDD). Next, there is a license agreement or an area development agreement that is executed by both parties, and up front development fees are paid. At that point, we begin the process of site selection and the development of your Otter's franchise. A franchise agreement is executed for each restaurant location.

2. How large is the initial total investment necessary to open an Otter's?

The total investment to open an Otter's restaurant is estimated to be between $291,500 to $1,200,000. Development costs can vary widely, depending on such factors as location, lease costs, whether you retrofit an existing facility or build out new construction or whether you build a free standing building or just lease space in a retail center. The initial franchise fee is $30,000, which is included in the aforementioned investment costs. At the time of signing the Area Development Agreement you will pay a $7,500 development fee for each location, which will be applied to the franchise fee paid when your location is secured. The royalty fee is 5% of your gross sales. The FDD provides more information on these and other related subjects.

You will receive the FDD, upon completion and acceptance of your application at a face to face meeting.

3. What is the net worth requirement for becoming an Otter’s Franchisee?

A single unit franchisee should have liquid assets of approximately $50,000, and should have a total net worth of approximately $250,000 to $500,000, depending on the type of store anticipated. It is also possible to combine the assets of more than one individual. Our net worth requirements are set to ensure that candidates have the ability to finance the opening of a location and the capacity to borrow money and sign a lease for a location. Individual circumstances will be considered, so please inquire so we can discuss the matter and your circumstances.

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

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

Royalty fees provide franchisees with the benefit of the ongoing operating system. This system includes operating procedures, menu items, recipes and the best available equipment that will enable you to attract and keep your customers.

These fees also provide for the ongoing support of our management team, 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 at all of the locations. All of these services help to enhance the brand awareness that the Otter's system enjoys. More information is contained in the FDD.

5. What territory is available for expansion for an Otter’s location, and how does that tie into the development plans for the company versus the franchise system?

Territory is available for development throughout the southeast and surrounding states. We believe that both company and franchised stores can exist together. We will be happy to discuss this in more detail with you. As part of our market research, we have determined, in general, the population demographics, traffic counts, income, etc. that are required for the development of one or more locations.

6. What type of location should be developed?

There are a couple of options. You may elect to lease and build out existing space in a strip center or you may find an existing restaurant that you can retrofit. You may also be interested in building your own freestanding building and leasing or purchasing the land. With these alternatives, 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 provide you with proven plans, specifications, equipment, and lot layouts.