Savvy Sliders Franchise in 2024: Costs, Fee & FDD
Savvy Sliders offers a fast-casual franchise opportunity with low investment costs, strong growth, and high sales potential. Explore the comprehensive breakdown of franchise costs, fees, and revenue to see if it fits your investment goals.
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Savvy Sliders is a growing fast-casual franchise that has made a name for itself in the competitive burger and slider space. Founded by industry veterans who saw an opportunity to elevate the slider experience, Savvy Sliders stands out by offering gourmet-style sliders with high-quality ingredients. The founders aimed to create a fast-casual brand that appeals to people looking for a quick but flavorful meal, and in doing so, they’ve carved out a niche in the fast-food landscape. Savvy Sliders is quickly becoming a recognizable name, particularly in regions where sliders and fast-casual dining are popular.
The franchise’s core product is, unsurprisingly, its sliders—delicious mini-burgers packed with premium ingredients and unique flavor profiles. Whether it’s classic beef sliders or innovative chicken and seafood options, there’s something for everyone. In addition to their signature sliders, they offer hand-battered chicken tenders, crispy fries, and shakes, making their menu diverse enough to attract families, young professionals, and anyone in between. Their core market is fast-casual diners, often looking for a quick bite that doesn’t sacrifice quality.
Savvy Sliders is currently expanding rapidly in the U.S., with dozens of locations popping up across the country. They are aiming to scale their operations, with future plans for international growth. Currently, the franchise boasts a strong presence, serving thousands of customers daily, particularly in high-traffic areas like shopping centers and urban hubs. Their ability to serve a large volume of customers while maintaining food quality has helped them stand out in the fast-casual space.
One of the reasons franchisees are drawn to Savvy Sliders is its strong support system. They offer comprehensive training programs that cover everything from food preparation to customer service. Additionally, franchisees benefit from ongoing marketing and operational support, ensuring they’re set up for success. The brand’s focus on streamlined operations and a clear business model makes it an attractive option for those looking to dive into the fast-casual restaurant industry.
Savvy Sliders Franchise Insights
- Savvy Sliders has opened over 20 locations across the U.S. in just a few years, with 39% year-over-year unit growth rate compared to a stagnant industry at 0%.
- The slider-focused menu allows for better portion control and reduced food waste, contributing to higher profit margins compared to traditional burger chains.
- The franchise has a relatively low initial investment, ranging from $411,000 to $965,000, making it an accessible option for first-time franchisees.
Savvy Sliders Franchise Key indicators
Growth YOY (%)
39%
vs industry 0%
Total U.S. Franchised Units
29
3-Year Failure Rate
7%
vs industry 10%
Sales-to-Investment ratio
1.6:1
How much does it cost to open a Savvy Sliders franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Savvy Sliders franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Savvy Sliders franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Savvy Sliders below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Grand Opening Advertising | $15,000 | $15,000 |
| Site Selection and Lease Review/Negotiation | $1,000 | $7,500 |
| Initial Lease Payments | $2,000 | $22,500 |
| Leasehold Improvements | $75,000 | $350,000 |
| Equipment, Fixtures, Furniture, and Signs | $241,000 | $460,000 |
| Initial Inventory and Operating Supplies | $25,000 | $25,000 |
| Miscellaneous Travel and Living Expenses While Training | $2,500 | $10,000 |
| Insurance | $2,500 | $10,000 |
| Miscellaneous Pre-opening Expenses | $2,000 | $5,000 |
| Additional Funds (three months) | $10,000 | $25,000 |
| Total Investment | $411,000 | $965,000 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
For Savvy Sliders, specific financial requirements such as capital, liquid assets, and net worth are not publicly disclosed, but I can provide some industry estimates based on similar fast-casual franchises.
- Required Capital Typically, the initial investment to open a fast-casual franchise like Savvy Sliders ranges from $411,000 to $965,000, depending on the location, build-out costs, and equipment. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Franchisees usually need to demonstrate $100,000 to $200,000 in liquid assets to cover initial operating expenses and ensure they have the cash flow to sustain operations during the early months.
- Net Worth Many fast-casual franchises expect franchisees to have a net worth of at least $500,000 to $1 million to qualify, ensuring that the franchisee has sufficient financial stability.
These are general estimates and can vary depending on location and individual franchise agreements.
How much does a Savvy Sliders franchise owner make?
Calculating the salary of a Savvy Sliders franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Savvy Sliders franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Savvy Sliders Revenue & Gross Sales
Based on the most recent analysis, Savvy Sliders franchises have a median gross sales of $1,115,704, demonstrating strong consumer demand and consistent revenue potential. This impressive performance highlights the brand’s ability to generate significant returns for its franchisees, positioning it as a competitive option in the fast-casual dining industry.
Which key factors impact the average revenue performance of Savvy Sliders franchisees?
The strong performance of Savvy Sliders’ U.S. franchisee median gross sales can likely be attributed to several key factors. First, the growing consumer preference for fast-casual dining with high-quality, customizable options has boosted the brand’s appeal. Additionally, their focus on efficient operations and quick service caters to a fast-paced market, especially in urban areas. The expansion of delivery and online ordering platforms also played a significant role, as more customers sought convenient dining solutions. Lastly, the brand’s consistent marketing efforts and strong community engagement have helped increase brand visibility, contributing to higher sales volumes compared to the prior year.
Savvy Sliders Franchise Operational Costs
When opening a Savvy Sliders franchise, the primary ongoing operational costs to consider would include:
- Staffing and Payroll Wages for kitchen staff, cashiers, and management will be a significant recurring cost, as labor is crucial for efficient operations.
- Food and Supply Costs Maintaining the high-quality ingredients Savvy Sliders is known for, along with packaging and other consumables, will be a key expense, with fluctuations in food prices impacting margins.
- Utilities and Maintenance Costs for electricity, water, and gas, especially in a fast-casual restaurant setting with equipment like fryers, grills, and refrigeration units, are ongoing.
- Equipment Repairs and Replacements Keeping kitchen equipment in top working condition requires regular maintenance and occasional replacements, which can add to operational costs.
- Marketing and Local Advertising While national marketing is covered by fees, local promotions and advertising efforts will require investment to build and maintain a strong customer base.
Each of these factors will influence your overall profitability and day-to-day cash flow management.
Savvy Sliders Franchise Fees
When considering the ongoing fees for opening a Savvy Sliders franchise, it’s essential to factor in several operational costs that will be incurred on a regular basis. Below are the key fees to expect:
- Royalty Fee 5% of Gross Revenues for locations in Michigan, or 6% of Gross Revenues for locations outside Michigan. These fees are due by Wednesday each week, based on the previous week’s revenues.
- Advertising Fees Up to $1,500 per week (amount set by the franchisor), due weekly. These fees contribute to the brand’s advertising programs and can also be used for joint advertising with other franchisees.
- Additional Fees There may be other costs such as signage, menu updates, or other marketing materials that are not included in the standard advertising fees.
Understanding these fees is crucial for managing your franchise’s profitability, as they can impact your overall operational budget.
Savvy Sliders Franchise Earnings
As a Savvy Sliders franchisee, the median gross sales for a location is approximately $1,115,704. This figure represents a strong earning potential, particularly for those operating in high-traffic areas. With an efficient business model and appealing menu offerings, Savvy Sliders has positioned itself as a competitive player in the fast-casual industry, drawing in a consistent customer base and generating significant revenues for its franchisees.
For owner-operators, the earnings potential is further enhanced, with an estimated take-home of $167,000 based on industry operating profit margins. This figure reflects the income after covering key operational costs, demonstrating that hands-on involvement can increase profitability. Managing the day-to-day operations allows owner-operators to optimize staffing, streamline processes, and maintain quality control, ultimately leading to higher returns. This level of earnings makes Savvy Sliders an attractive option for those seeking both a solid income and an active role in their business.
How to Open a Savvy Sliders Franchise
The process of becoming a Savvy Sliders franchisee typically follows these key steps, from initial inquiry to the start of operations:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Franchise Application After expressing interest, you’ll fill out a franchise application. This application includes financial information, experience, and details about your goals, which helps the franchisor assess your suitability.
- Discovery Meeting Once approved, you’ll attend a discovery day or meeting with the franchisor to learn more about the business, the brand, and the expectations for franchisees.
- Franchise Agreement If both parties are satisfied, you’ll review and sign the franchise agreement. This legally binds you as a franchisee and outlines your rights and obligations.
- Site Selection & Lease Negotiation After signing, you’ll work with the franchisor to choose a suitable location for your franchise and negotiate the lease.
- Training & Setup Before opening, you’ll go through a comprehensive training program to understand the business operations. At the same time, you’ll set up your location, from build-out to staffing.
- Grand Opening After completing training and setting up, your franchise is ready to open its doors, and you’ll launch with the support of the franchisor, starting operations and building your customer base.
Pros & Cons
Pros
Growing Brand: Savvy Sliders is rapidly expanding, giving you a chance to join a brand that’s gaining traction and visibility in the market.
Strong Revenue Potential: With median gross sales of $1,115,704, franchisees have the potential for solid earnings, especially if operating in high-traffic areas.
Flexible Menu Appeal: The slider-based menu is customizable and attracts a wide range of customers, from families to young professionals.
Cons
High Ongoing Fees: Royalty and advertising fees, such as up to $1,500 in weekly ad fees, can add up and impact profitability.
Limited Brand Awareness: While growing, Savvy Sliders may not have the same brand recognition as more established fast-casual franchises.
Franchise Location Limitations: Success can be heavily dependent on securing prime real estate and the local demand for sliders.
