IN FOCUS: Outside of the box investment opportunities

How to make a franchise investment a success

Feb 28, 2018

As well as providing investors with numerous financial and tax benefits, franchise investments also provide a key advantage that everyone yearns for: control over one’s own success and control over one’s own schedule. 

“Being in charge of your own destiny is one of the major lifestyle benefits of a franchise investment,” says Steve Drexler, President, ‎St. Louis Franchise. “You have personal time and freedom, and can make time for family; to pick up and drop your children off at school. Those are some of the big reasons why people go into franchising.”

The potential to generate income and take the reins of a franchise with a track record of success is another key differentiator. Lifestyle is important, but the money has to be right, too. “Investors get to take advantage of a proven concept where they create their own compensation,” Drexler says. “There are also better tax advantages than just being someone who generates a T4 income every year. And, you get to develop your own culture. You are the boss.”

The St. Louis Bar and Grill franchise has become a leading brand name in Canada since its inception in 2002, and offers attractive franchise opportunities for Canadians. Below is a breakdown of the numbers of a franchise investment with the company:

  • Franchise fee: $40,000
  • Royalty contribution is 6% of weekly gross sales
  • Advertising fund contribution is 1.75% of weekly gross sales
  • 2016 sales average per unit was $1.7 Million
  • The minimum unencumbered cash investment required is $500,000-$600,000
  • The total turn-key investment for a new St. Louis Bar and Grill is $850,000-$950,000

“The investor is responsible for making the original equity infusion into the company and we then train them, or if they want to be a silent investor, we train their management team on how to run the restaurant from A to Z,” Drexler says.

“We provide a fully comprehensive 5-6 week training program, which covers all facets of ownership and operation, as well as 2-3 weeks of operational support post-opening. We hold their hand and teach them every position including, most importantly, the financial management tools that are necessary for success in this business.”

Download this whitepaper to find out more about how Canadians are benefitting from franchise investments. 

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100% Canadian owned and operated, St. Louis Bar & Grill is known for our ‘Devilishly Good!’ service, signature wings and fries, and famous garlic dill sauce. Our sleek new store look, featuring custom video walls, inviting patios, and 14+ taps at the bar makes St. Louis the obvious choice for watching the big game.

When St. Louis first opened the doors in 1992, our objective was simple- deliver amazing food in an awesome atmosphere, while providing the best guest experience possible. Over 25 years later, that vision still rings true as we welcome new guests and familiar faces each and every day.

As the St. Louis brand continues to grow, we are quickly becoming recognized as the #1 neighbourhood sports bar and grill destination. With over 55 locations across Canada, and an additional 10 slated to open in 2018, it’s an exciting time to partner with St. Louis.

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