Approval & Development Process

The Char-Grill Franchise Approval and Development Process
The following steps are designed to provide the franchise candidate with a structured process for consideration, approval, and development of Char-Grill franchise restaurants. The steps are as follows (with detail immediately following):

  1. Completed Application
  2. Disclosure and Receipt of Franchise Disclosure Document (FDD)
  3. Interview
  4. Signing of Franchise Agreement
  5. Real Estate/Site Selection Process
  6. Construction/Store Development
  7. Training
  8. Store Opening
  9. On Going Store Assistance

1. Completed Application

The application can be found by clicking here. Please complete all information, thoroughly, to insure speed in review and response to your inquiry. You may complete the application, on-line, for submission; you may print the application and fax it to our corporate offices (919) 367-0775, or you can mail the application to our corporate headquarters:

Char-Grill Franchise Systems, LLC
P. O. Box 1166
Cary, North Carolina 27512-1166

2. Receipt of Franchise Disclosure Document (FDD)

Upon review and approval of your franchise application, you will be forwarded a FDD document. This disclosure is required by law and provides a great deal of information about the owners, policies, procedures, and costs for franchise development. It also contains a copy of the Franchise Agreement, which is the contract for operating a Char-Grill Franchise.

You are required to sign a “receipt” that you have received this circular, which must be signed and returned by all individuals, partners, and members that will have an ownership interest in your Char-Grill restaurant. We are required by Law to wait ten (10) days after receiving your FDD receipt, before we can sell you a franchise.

3. Interview

Once we have approved your application and received your FDD receipt, we will schedule a time that we can meet and discuss your interest in Franchise Development with Char-Grill. At this meeting, we will discuss the territory that you are interested in developing and the number of stores that you wish to own. We will attempt to answer the majority of your Due Diligence questions during the meeting.

4. Approval of Franchise / Signing of Documents

Once all parties have agreed upon the terms of the Franchise relationship, a Franchise Agreement, and in some instances, a Multi Store Development Agreement will be executed by you and us. This will provide you the rights to develop a single franchise unit for a specific geographic area.

5. Real Estate/Site Selection Process

Immediately upon receipt of an executed franchise agreement and payment of the franchise fee, we will work with you to select a location for the development of your Char-Grill restaurant. You will be required to ultimately find and select your location, which must be approved by Char-Grill Franchise Systems, LLC, prior to the signing of a lease. We may elect to utilize brokers and other real estate professionals in a given market for support in our real estate efforts. You are not required to pay any brokerage or site locator fees.

6. Construction & Store Development

We will work with you throughout the design, build out and completion of your franchise location. We will provide you with a prototypical store layout/design, that you will need to engage a local architect to modify to conform with the site you select. The architect plans will require a full engineered sealed set of blueprint drawings, for submission and approval by the local building inspectors, fire marshals and health department.

7. Training

The Char-Grill franchisee training program is designed to thoroughly indoctrinate the franchisee and their operating partner into the operations and management of their Char-Grill restaurant. The training program is a combination of classroom training, in-store experience, and competency testing that will take place at a certified training restaurant. Currently, the training program is offered at one of the corporately operated restaurants located in Raleigh/Cary, North Carolina.

The program is a total of nine (9) weeks. It is required to be attended by two (2) individuals per franchise location. It is further required that two individuals be “certified” by a Char-Grill training manager, prior to the franchisee opening their store.

8. Store Opening

We will provide a minimum of two (2) representatives from Char-Grill Franchise Systems, to assist in the opening of your franchise location. These two individuals will spend a minimum of five days (60 hours / each) to insure the successful opening of your franchise location.

9. Continuing Store Assistance

We will visit your store a minimum of four (4) times throughout the calendar year. These visits are designed to discuss the operations, personnel, product quality issues, marketing, customer service, and profitability of your franchise location. These visits will be documented with a written assessment of your stores overall performance. Our representative will review this assessment with you to discuss all aspects of their evaluation. Acceptable levels of service, cleanliness and operation of your Char-Grill are required for additional franchise development.

Financial Criteria

To insure that franchise partners get off to the right start, we require certain minimum financial requirements to be considered for franchise development. Please review these requirements prior to completing your application for franchise consideration. If you do not meet the financial criteria, you may want to contact our sales office to discuss methods that you can incorporate to meet these requirements. The following are the minimum financial criteria for franchise consideration:
Number of Store(s) To Develop Minimum Liquidity* Minimum Net Worth

Number of Stores to Develop


Minimum Liquidity


Minimum Net Worth


1

$200,000.00

$500,000.00

2

$275,000.00

$600,000.00

3

$350,000.00

$700,000.00

4

$425,000.00

$800,000.00

5+

$500,000.00

$1,000,000.00

10+

$1,000,000.00

$2,000,000.00

Larger Area Development



TBDTBD

*Liquidity is defined as: Cash, Marketable Securities, IRA, and any Assets easily convertible to Cash.
Credit Score—Our franchise candidates must have a combined credit score in excess of 625, from the top three credit reporting agencies, with no outstanding liens, unpaid judgments, or recent slow credit history.

Restaurant Operating Experience—While it is not a requirement that our franchise candidates have prior restaurant experience, it is strongly recommended that an “Operating Partner” be designated to assist in the development and operation of your franchise restaurant. In most instances where Bank financing is required, the lending institution will require some restaurant experience as a criteria for credit approval.