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Perkins Restaurant & Bakery

Since 1958, Perkins Restaurants have stood for value, quality and authentic food at affordable prices. Now with nearly 500 locations throughout the U. S. and Canada, Perkins has expanded its menu, originally focused on breakfast to offer an impressive variety of menu options for lunch and dinner. Perkins’ menu variety has kept its customer base broad for decades, and its signature bakery with mouthwatering treats baked on the premises keeps them coming back for more.

Customer favorites like premium omelettes, melt sandwiches and desserts fill Perkins restaurants with people of all ages, both friends and family. The bakery selections, ranging from rich cinnamon rolls to luscious cream pies present a significant opportunity for take-home bakery sales. The heritage of the Perkins brand and the ability to adapt to current consumer trends have placed Perkins among the top performing companies in the family restaurant segment.

Operating Units	12/31/2005	12/12/2006	12/31/2007
Franchised	331	322	323
% Change	--	-2.7%	0.3%
Company-Owned	151	155	162
% Change	--	2.6%	4.5%
Total	482	477	485
% Change	--	-1.0%	1.7%
Franchised as % of Total	68.67%	67.51%	66.60%

Investment Required

The fee for a Perkins Family Restaurant franchise depends on certain factors.

Perkins provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.

Item	Established Low Range	Established High Range
Franchise Fee	depends on factors	depends on factors
Land	$400,000	$1,250,000
Construction of Building	$500,000	$950,000
Furniture, Fixtures and Equipment	$350,000	$500,000
Signage	$25,000	$40,000
Interest During Construction	$25,000	$30,000
Licenses, Insurance, Pre-Opening Advertising	$45,000	$55,000
Inventory, Smallwares, Uniforms	$35,000	$40,000
Training Expenses and Opening Team Expenses and Salaries	$82,000	$104,000
Software License Agreement and Maintenance and Support Agreement	$600	$600
Accounting Services Agreement (3 periods)	$0	$2,670
Royalty Fees (3 months)	$6,631	$29,628
Marketing Contributions (3 months)	$4,973	$21,622
Additional Funds (3 months)	$479,000	$604,000
Total Investment	$1,991,612	$3,623,332

On-going Expenses

Perkins franchisees pay royalty fees equal to 4% of gross sales (in all states except Iowa and Wisconsin, where the fee ranges from 5-6% of gross sales), advertising fees equal to 3% of gross sales and local advertising expenditures equal to 1% of gross sales.

What You Get—Training and Support

Perkins franchisees get a personal franchise consultant to guide them through every part of opening and managing their restaurant. Perkins supports its franchisees through real estate selection, a comprehensive training program and marketing efforts. The franchise consultant acts as a liason between the franchisee and Perkins, and ensures that everything from opening to planning for expansion runs smoothly.

Perkins also assigns each franchisee a field marketing consultant to stay in touch with everything going on in the local market. This consultant develops and executes customized plans for any challenges or situations that come up, from dealing with competition to road construction. At the corporate level, Perkins is focused on delivering the highest quality marketing materials to a national market, including TV and radio advertisements and professionally designed menus.

Territory

Perkins does not grant exclusive territories.



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