Brinker International Payroll Company, L.P is the franchisor. The franchise business is a Chili’s Grill & Bar and Chili’s Special Venue restaurant. Chili’s Grill & Bar restaurants traditional restaurants with a casual atmosphere, dining area, and full-service bar. Chili’s Special Venue is a smaller version with a reduced square/menu. Chili’s Grill & Bar restaurants are full-service restaurants with a varied menu of freshly cooked appetizers, main courses of beef, chicken, and seafood, barbeque ribs, hamburgers and sandwiches, salads, flatbreads, desserts, southwestern and Mexican-style cuisine, and a full range of services bar. Our restaurants usually are free-standing buildings and located in metropolises or nearby suburbs. It is desirable for high traffic areas like shopping malls and office buildings to be near.
The initial management training program must be completed to the franchisor’s satisfaction by the managing owner or operating partner and up to 5 managers to every restaurant. Newly appointed operating partners and hired managers must also attend and complete the initial training program. Usually, it lasts 15 weeks.
All necessary pre-opening instructions will take place in one of the franchiser's certified restaurants and must be completed at least two months (but no more than five months) before the restaurant opens. Taking into account certain factors as the franchisee’s previous restaurant experience and the size and location of the restaurant, to help with the opening, the franchisor may send an opening team if it is necessary.
The franchisor may ask staff to complete supplemental training programs. Besides obligatory training programs, the franchisor can hold conferences for general managers in a specially designated area. Also, the franchisor may provide annual conferences for general managers and quarterly meetings for unit supervisors.
Territory Granted: The franchisee can operate the restaurant placed only at the location written in The Franchise Agreement. The restaurant can’t be relocated without the written consent of the franchisor. The Franchise Agreement doesn’t grant any territorial rights, so franchisees won’t get any exclusive territory.
The Franchise Agreement does not require the achievement of any specific sales volume or market penetration. There may be competition from other franchisees, franchisor restaurants or other forms of distribution, or brand competitors controlled by the franchisor.
Obligations and Restrictions: Franchisees must designate “managing owner” when they sign the agreements. Franchisees can be managing owner if they are an individual. The managing owner must act on the development agreement and all franchise agreements between the franchisor and the franchisee.
For franchisees as a business entity like a partnership, a corporation or other managing owner must meet the following requirements:
- share of ownership must be largest and no less than 10%,
- have the right to bind the franchisee in any relationship with the franchisor and authorized distributors, suppliers, and contractors,
- have the right to direct any action necessary to enforce agreements
- if there is no appointed operating partner, managing owner must devote his\her full time and best efforts to operate the restaurant and has no obligation to operate other businesses,
- complete all required training.
The restaurant can operate only as Chili’s restaurant, be open in normal operation for days and hours written in the manual or other written documents. Without written consent, franchisees shouldn't use or allow to use premises for any other purposes and activities. It is required for franchisees to meet and maintain the highest healthcare standards and ratings. The restaurant must be operated in strict accordance with the franchisor’s standards, methods, specifications.
Term of Agreement and Renewal: The length of the initial franchise term is generally 20 years. If requirements are met, the renewal franchise agreement will be also 20 years.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee any notes, leases or other obligations franchisees may make to others.
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