FAQs – Shoney's Franchise



What are the benefits of purchasing a Shoney’s franchise?

When you open a Shoney’s or a Shoney’s On The Go, you will share our reputation as a favorite dining destination for guests of all ages and have our decades of committed experience to support you. Specifically, the benefits include the name recognition of an American legacy brand, tested and proven processes and support, purchasing power and distribution chains of an established system, cooperative marketing, new product research, development and roll-out, experienced training staff, and continuing education opportunity at Shoney’s University.

What are the financial requirements for someone who wants to own a Shoney’s® restaurant?

To qualify financially for Shoney’s franchise ownership, you must have a provable net worth of at least $1.5 million, and liquid assets of at least $500,000. To financially qualify for Shoney’s On The Go franchise ownership, you must have a provable net worth of at least $1 million and liquid assets of at least $250,000.

Do you offer financing?

We do not offer financing, however, Shoney’s has been pre-approved by the United States Small Business Administration (SBA) on the Franchise Registry, which allows for streamlined SBA loan processing.  We also provide our franchise candidates with a preferred vendor list, which includes financial lenders who have extensive experience in the restaurant industry and offer a number of loan programs.

Can I open a single Shoney’s restaurant?

You can open a Shoney’s single restaurant or multiple restaurants.

What are the franchise fees?

The franchise fee is $35,000 for a Shoney’s Restaurant and $25,000 for a Shoney’s On-The-Go.

Are there continuing fees after my initial fee?

Continuing fees for Shoney’s include a royalty of 4% of your gross restaurant sales, and current advertising fees of 2.75% of your gross restaurant sales. Continuing fees for Shoney’s On The Go include a royalty of 5% of gross restaurant sales, and current advertising fees of 2.75% of gross restaurant sales.

How much money can I make?

Profitability depends on many factors. Restaurateurs who maintain a competitive edge by providing great food and superior service in a well selected restaurant location, that is clean and inviting, have the opportunity to prosper and operate effectively.

What are the basic requirements for franchising Shoney’s?

Shoney’s will require that you agree to build, open and operate the number of Restaurants determined reasonable for the territory. Shoney’s will set the number of Restaurants for the territory based on analysis of the market. Many factors are considered, including, but not limited to the following considerations: competition, economic, demographic and geography.

Why does Shoney’s require that a franchisee have US $1M in liquid assets per Restaurant to financially qualify?

Shoney’s has determined that in most cases these numbers are necessary in order for a franchisee to qualify for the loans that are required to build Restaurants. We feel that these numbers represent the level of financial responsibility that our franchisees should have.

What are ‘Liquid Assets’?

The most common forms are cash, stocks, bonds and inventory.

What type of support does Shoney’s offer after I open?

One of the unique aspects of being a Shoney’s franchisee is that you get personalized service from one of our International Business Consultants (IBC)/ Your IBC is your one point of contact with Shoney’s; you have only one number to call to get answers on training, operations, marketing, etc. This allows you to build a business relationship with someone who knows you and your business. Shoney’s also offers ongoing support in many other areas, including development, Restaurant construction and opening, marketing, training, and sales-building.

Sales and Earnings Claims:

What is the average profit from a Shoney’s Restaurant?

Each market and territory, especially international, is unique and therefore have different costs. When you prepare your Business Plan, you should do proper research to establish those costs based on the local economy.

General Information:

Why do you have to build a certain number of Restaurants?

We use this minimum to keep our franchise community active and aggressive. The number also requires that you are financially sound enough to continue to grow the Shoney’s brand.

Is the franchisee required to build all Restaurants for your development agreement at once or over a period of time?

Development schedules will vary by the number of Restaurants you agree to develop and the Territory you have been granted.

Are there any territorial obligations?

Each franchisee will be granted a specific territory to develop a specific number of Restaurants. Note that there is a territory fee to be granted and the exclusive right to develop Restaurants in the selected market. A Restaurant cannot be relocated without Shoney’s prior written approval.

Should I hire a marketing professional locally to work with Shoney’s International?

Shoney’s International recommends that you hire a marketing professional and/or agency locally to work directly with Shoney’s Marketing Department to assist in development and execution of the Shoney’s Marketing Programs in your region.

Once I become a Shoney’s Franchisee where do I purchase the products to run my business?

Shoney’s International Product Development will provide a list of authorized suppliers/ distributors from whom you can purchase your ingredients and supplies.

How do I know which restaurant items will work in my country?

Shoney’s has a standard menu for use around the world which can be modified with Shoney’s approval to meet the needs of your market.

Can I add items that are not standard in the US?

Shoney’s does allow some variance but they are considered from market to market. We work very closely with our Franchise Partners to develop products that are popular in the local market.

Can I buy local items to supply my Restaurant?

Shoney’s will try to help you source as much product locally that meets Shoney’s specifications.