Frequently Asked Questions
1. How much is the franchise
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
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
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
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
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.