Franchising FAQs

Red Arrow Diner Franchising1. How much is the franchise fee?

The franchise fee is $25,000 for the first Restaurant location. Should a second location be awarded to an existing franchisee, the fee is $20,000. This fee is for the initial license to use the Red Arrow Diner name, training, site assistance and other pre-opening and opening services in starting your Red Arrow 24 Hour Diner

2. What are the other costs?

Investments can vary based on site conditions. Please note that a free standing site that calls for a Red Arrow designed diner car, may have higher cost associated with the total construction expenses. The costs associated with the opening of a Red Arrow Diner are more thoroughly described in the DD-FA documents you will receive with an interview.

3. What is the charge for royalties?

Franchisees pay a royalty fee of 5% of gross sales from their Red Arrow Diner franchise exclusive of sales tax and local use or service taxes. The royalty fee is collected weekly. This charge covers the continued use of the Red Arrow Diner name, its trademarks and access to our operation methods, recipes, training materials and the ongoing support and all other benefits that come with being a part of the Red Arrow team.

4. What about marketing and advertising?

The Red Arrow owners have spent a great amount of time and effort in bringing national recognition to the name “The Red Arrow 24 Hour Diner”. It is essential that there is an ongoing effort to maintain and to build upon that reputation. Therefore, each franchisee is required to contribute up to 2% of gross sales into the creative marketing fund, collected weekly for the continuing support of P.O.P. materials, regional advertising, and add a merchandise development your local web site presence.

5. What opening assistance will I receive?

In addition to 6 weeks of training for you and 2 of your key people and spending time with you during your first two weeks of operation, you will receive continuing support from your franchise consultant. Some of that support will be in the form of audits on your operation, to better help you in your business by encouraging and training you in the use of cost effective tools and methods to monitor and improve your results as we work toward maximizing sales and profits.

6. What are terms of the franchise agreement?

The initial term is for 5 years. The franchise agreement is renewable for 3 successive terms of five years for Franchisees that meet our renewal criteria. There is no additional franchise fee associated with these renewals.

7. What is the average size of a Red Arrow 24 Hour Diner?

Our typical diner ranges from 1500 square feet to 2100 square feet and has a seating capacity of up to 48 seats. We discourage seating capacity greater than this as the success of our diner is based upon a 24 hour system that ensures high volume capability and lower cost for lower volume situations. This size also lends itself to being able to fit into areas that have high volume potential but limited space availability.

8. How do I get started?

If you meet our minimum requirements, please complete our online Franchise application to begin the process of becoming a Red Arrow Diner owner/operator.