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About TGI Fridays
What is TGI Fridays and what services does it provide?
This American casual dining and bar chain has a comprehensive menu offering that ranges from small plates and appetisers to chicken, burgers, ribs, seafood, vegan options and food specifically aimed at children. It also offers customers a large selection of non-alcoholic drinks, plus cocktails and beers.
With an emphasis on delivering a lively, fun customer experience in a modern, vibrant dining environment, over the years TGI Fridays has become famous for its loaded potato skins, Jack Daniel’s Grill and Long Island Ice Tea.
Alan Stillman, who was a perfume salesman at the time, opened the first TGI Fridays in New York in 1965. Currently, the company has approximately 800 restaurants in 60 countries around the world, 80 of which are in the UK. It is estimated that TGI Fridays serves two million customers a year and has international sales of $2.6 billion (approximately £2 billion).
All restaurants feature distinctive retro American themed branding such as red-striped canopies, brass railings and Tiffany lamps.
TGI Fridays has a strong company culture based on the key values of integrity, innovation, empowerment, accountability and responsibility. It started franchising its business concept in 1988.
How does the TGI Fridays franchise model work?
This is a management franchise opportunity and franchisees must commit to developing a multi-unit franchise operation that requires the opening of five restaurants in five years. In return, they are provided with a tried and tested template of how to set up and run a number of TGI Fridays branded restaurants.
As a result, prospective franchise partners must have at least five years’ experience of running a restaurant in an owner/operator capacity, as well as a track record of developing a multi-unit franchise business. They must also be committed to delivering first-class customer service and an exceptional casual dining experience throughout the duration of the franchise agreement.
All franchisees must prepare a business plan that demonstrates the viability of opening a chain of franchised restaurants. The document must include details about the potential of the local market and franchisee organisational structure, a profit and loss statement and an estimated five-year cash flow and financing plan.
How much does it cost to become a TGI Fridays franchisee?
This depends on the region you want to set up your business in and the size and number of restaurants you wish to own.
However, TGI Fridays states franchisees must have a minimum net worth of around £4.7 million and liquid assets in the region of £2 million.
Does TGI Fridays charge its franchisees any ongoing fees?
It does. The TGI Fridays royalty fee is currently four per cent of gross sales. Franchisees must also contribute 4.75 per cent of their gross sales to the company’s national advertising fund.
A royalty fee is payable to the franchisor so a franchisee can trade using the franchisor’s brand name, trademarks, systems and goodwill. This money may also be used by the franchisor for investment in the development of the franchise network and the research into and development of new products and services, which will be made available to franchisees for use in their businesses.
The national advertising of the brand is organised by the franchisor. It is an essential element of the business’ promotional activities, as it keeps TGI Fridays’ profile high and drives business to franchisee-owned restaurants.
What training and support do TGI Fridays franchisees receive?
As you would expect from an experienced international franchisor, a comprehensive initial and ongoing training programme is provided to all franchisees both face to face and online using the latest technology.
General managers, managers and restaurant team members also receive training from specialist TGI Friday staff.
Ongoing skills development is encouraged via regularly held seminars and meetings, where the latest brand developments are discussed and best practice is shared.
Franchisees are supported every step of the way by experts in restaurant design and construction, food and beverage development, product sourcing, operations, human resources, marketing, business development, finance and strategy.
What are the TGI Fridays franchise terms of agreement and renewal?
All franchise partners must sign an initial 10-year franchise agreement, which is renewable for two further terms of five years each.
Why is TGI Fridays a good investment?
If you have the required skills and experience needed to become a TGI Fridays franchisee, you will benefit from a brand name that is familiar to customers in many countries.
Similar to many other established franchise companies, this business also provides investors with a system of conducting business that has been proven in multiple territories, a robust supply chain and a menu offering that attracts customers from a broad range of age groups.
It also gives franchisees the chance to open multiple restaurants and taken advantage of the potential economies of scale this type of enterprise offers.
How can I get started on setting up my own TGI Fridays business?
All franchisee candidates must complete an application form that outlines their qualifications and experience, which is assessed by TGI Fridays.
The next part of the recruitment process is the interview stage. At this point, the prospective franchisee is provided with the company’s franchise disclosure document following the signing of a nondisclosure agreement. This contains in-depth information about the business opportunity on offer.
A formal franchise application and detailed business plan are then completed by the candidate (TGI Fridays can assist with the completion of the business plan if necessary).
Following this, reference checks are carried out by the franchisor and a franchise agreement setting out the terms and conditions of becoming a franchisee is signed.
It’s then time to begin training and enter the construction and launch phase of the business.
The franchise approval process can take anything from four to eight months to complete.
During this time it is critical that would-be franchisees conduct their own due diligence into the business and enlist the help of suitably qualified legal and financial professionals, who can scrutinise and advise on the information provided about the business opportunity by the franchisor.
Request Free Information
Send a free enquiry to TGI Fridays for further information!