Franchise FAQs

From whom do I lease the land and building?
You may use an outside source to do the development.

What type of Franchises are available?
We grant individual as well as area development franchises for new or existing locations.

How much is the franchise fee?
The franchise fee for a freestanding store is $25,000. The franchise fee for a mall location is $17,000. The franchise agreement must be signed by an individual and can be subsequently assigned to a corporation or partnership.

What are the financial requirements?
The franchisee must individually own a minimum 51% equity stake in the business.

Enclosed Mall Location
$ 100,000 - 200,000 investment required for 51% - 100% ownership.

Free Standing (Land/Building Lease)
$ 125,000 - 250,000 investment required for 51% - 100% ownership.

Cash must come from non-borrowed sources.

As the franchisee, do I also need to be the general manager?
Runza^® strongly recommends (but does not require) its franchisees be involved in the day-to-day operations of the store. If the franchisee decides not to be the general manager, and subsequently hires a general manager, Runza^® National requires that 10% ownership be assigned to the perpetual general manager.

How much is the royalty fee?
The royalty fee is 5% of gross sales paid monthly, exclusive of sales tax.

Am I required to maintain any sort of sinking fund?
Yes. Each franchisee is required to commit 1% of gross sales to a long-term improvement fund. This is your money to spend on long term improvements for your Runza^® Restaurant.

How much is charged for advertising?
Each franchise is required to contribute 1% of gross sales to the Advertising Production Fund. These contributions pay for creative development, television production, radio production, overhead, and public relations projects. Also, each franchise is required to spend up to 4% of gross sales in their 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.

Who is responsible for finding a suitable location for my franchise?
It is the responsibility of the Franchisee to find a suitable location. Runza^® National will assist you in a site analysis and is required to give final approval for all locations.

Are remodels of existing buildings suitable for a Runza^® Restaurant?
Yes. This can often be an economical option to new construction. Also, remodels often shorten the time it takes to open a Runza^® Restaurant.

What size of building is necessary for a Runza^® Restaurant?
Free standing locations range in size from 2,500 - 3,600 square feet.

Does Runza^® Restaurants have a training program?
Yes. Runza^® National provides franchisees and general managers with a one-week Runza^® University training program at corporate headquarters in Lincoln, Nebraska. In addition, you will be required to complete a six-month in-store training program at an approved location. As part of the franchise fee, Runza^® National will provide both the in-store and one-week Runza^® University training of one manager. A trainee must successfully complete the training program to operate a Runza^® Restaurant franchise.

Do I receive assistance in opening my business?
Yes. Runza^® National provides each store opening with one field representative for one week, at no cost to the franchisee. Any additional ongoing assistance will be charged at the current rate.

Will assistance beyond my store opening be available?
Yes. A large benefit to being part of our franchise system is the ongoing support offered by Runza^® National. We have a corporate staff of 33+ employees, each with operational experience. We have several departments ready to assist you: Personnel, Marketing, Maintenance, Products, Operations and Bookkeeping.

In addition to departmental assistance, we've spent 50+ years polishing our operations manuals and training CD's. These are very useful tools to assist franchisees and store managers.

What supplies must be purchased as a Runza^® Restaurants franchisee?
Runza^® National requires franchisees to purchase in-store decorations, proprietary software and proprietary mixes necessary for production of the Runza^® Sandwich.

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, which will give you pricing recommendations.

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 a $5,000 fee for the additional term.

Can Runza^® Restaurant franchisees be involved in other businesses?
Other business interests are possible provided you are not engaging in a business specializing in quick service hamburgers without prior written consent.

What are the management requirements?
The general manager, responsible for day-to-day operations, must have a minimum of two years prior experience operating a restaurant(s). Runza^® strongly recommends (but does not require) its franchisees be involved in the day-to-day operations of the store.

How long before my Runza^® Restaurant is open?
Generally the process takes 250 days from receipt of your application.

What's the next step?
The next step is to fill out the Franchise Application Form and submit it to:

ATTN: Franchise Director
Runza^® National, PO Box 6042,
Lincoln, NE 68506

Submission of an application in no way obligates you or Runza^® National, Inc.