Franchising FAQ’s
If you still have questions after reading about the process of becoming a Franchisee, and how we support Franchisees, we’ve got answers.
In which markets are you currently looking for Franchisees?
We are actively seeking Franchisee candidates in Nebraska, Kansas, Colorado, Iowa, Missouri and Wyoming only.
What type of Franchises are available?
We grant individual as well as area development franchises for new or existing locations.
Who is responsible for finding a suitable location for my franchise?
It is the Franchisee’s responsibility, but Runza® National will assist you with a site analysis and final approval.
What are the requirements for my franchise location?
A few of our key requirements:
- Free-standing locations range in size from 2,500 - 3,600 square feet.
- You may use an outside source to lease the land and building.
- Remodels of existing buildings are allowed, and can be an economical alternative to new construction. Also, remodels often shorten the time it takes to open a Runza® Restaurant.
- We also offer a drive-thru only model.
What assistance do I receive when opening my business?
We provide each store opening with one District Supervisor for one week, at no cost to the Franchisee. Additional ongoing assistance is available at the current rate.
What other funds or fees are associated with my ownership of a Runza® franchise?
- A 5% monthly royalty fee is paid to Runza® National, exclusive of sales tax.
- 1% of your gross sales go to a long-term improvement fund, for updates to your restaurant.
- 1% of your gross sales to the Brand Building Fund, for the development and execution of advertising and public relations campaigns.
- You must spend up to 4% of gross sales for marketing in your local market. If a cooperative effort is or will be established in your territory, you will be required to participate. Any required cooperative expenditures are included in the required 4% local spending.
How much profit can I expect to make?
Runza® does not make sales claims for new restaurants. Our Franchise Disclosure Document discusses sales.
What is the term of my franchise agreement?
The initial term is 10 years. There is one additional 10-year renewal option at the then-current agreement terms. You must give at least six months advance notice of renewal and pay 50% of the then-current initial frachisee fee.
As the Franchisee, do I also need to be the General Manager?
We strongly recommend – but don’t require – that Franchisees be involved in the day-to-day operations of the store. If you’d prefer to hire a General Manager, you may, provided they are assigned 10% ownership and have a minimum of two years prior experience in restaurant operation.
What supplies are Franchisees required to purchase?
In-store decor, proprietary software and proprietary mixes necessary for production of the Runza® Sandwich are all required purchases.
Who decides what prices I will charge for menu items?
With the exception of certain maximum price promotions, you are responsible for setting menu prices. Runza® National provides you with a suggested price formula as a guideline.
Can Runza® Restaurant Franchisees be involved in other businesses?
Other business interests are allowed provided you are not engaging in a business specializing in quick service hamburgers without prior written consent.
How do I get started?
Download and complete our Franchise Application Form, or contact us if you have any further questions.