Big Boy restaurants started recruiting new franchisees in September with a direct mail and print advertising campaign. The chain plans to open 10 to 15 new franchises in the next seven to 18 months. The chain also plans to open one to two company-owned stores a year for the next five years.
"This is the real kickoff of all the work we've put in the last two or three years with the company," says Anthony Michaels, CEO for Big Boy Restaurants. "This is where the real work begins, selling the concept to prospective franchisees across the country."
Big Boy has received 130 inquiries from potential franchisees mostly from the western part of the US, including California and Nevada.
While the family-style restaurant chain recruits new franchisees, the company also is working to make sure existing franchises are maintained.
Big Boy Restaurants closed a St. Ignace restaurant last week and plans to close or relocate restaurants in Detroit in the next few months. Big Boy has closed 10 franchise stores in the last three years.
"We are on a mission to make sure Big Boy Restaurants are operated up to standards and in compliance," Michaels says. "That's part of improving and growing a chain."
The new restaurants cost $1 million to build. Franchisees have to buy or rent the land and pay an initial $40,000 fee and 4% royalties on annual sales. Opening a franchise takes 12 to 18 months.
Construction will begin on the South Lyon restaurant in April. Franchise owner Samir Saleh, 36, of Rochester Hills, is building the store at 11 Mile Road and Pontiac Trail. Saleh plans a 6,600-sf- restaurant with a small banquet room.
Big Boy has 22 company-owned restaurants and 150 franchises in the US and Japan. Detroit-area investor Robert G. Liggett Jr. bought the Big Boy chain from the Elias Bros. family out of Chapter 11 bankruptcy in October 2000 and formed Liggett Restaurant Group to oversee operations.
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