Franchising the frank
August 30, 2007 // Franchising.com // Miami, Fla. – Hot dogs have existed for centuries as the icon of sporting events and the symbol of America's ultimate comfort food.
For Franktitude, franks are more than just American tradition. They are the focus of the five-unit concept's menu which offers salmon, beef, chicken and tofu franks and two dozen toppings that range from non-traditional accoutrements such as hummus, wasabi mayonnaise and avocado spread to standard garnishes like mustard, ketchup, and relish.
In the United States, where annual hot dog sales are measured in the billions,Franktitude's upscale interpretation of the frank is feeding expansion of the fast-casual chain.
Founded in Miami in 2006, Franktitude embarked on franchised expansion this summer with the sale of their first franchise near Miami. The company's goal is to sign 24 more franchise agreements in the next 12 months in Florida and along the eastern seaboard.
Several factors are driving Franktitude's success.
There's the novelty of four frank flavors: chicken, tofu, beef and salmon, a unique introduction to the American marketplace. All of Franktitude's franks are made entirely of protein – no fillers. Some are low in fat and high in Omega-3 fatty acids. Guests can customize their franks by adding any number of toppings.
New menu additions such as the Burrito Frank, a beef frank wrapped in a flour tortilla with lettuce, tomatoes, cheese, black beans and avocado spread, and the Frank 'N Burger, a burger patty in the shape of a frank served on a grilled bun with melted cheese and diced onion are also beefing up the reputation of the frankfurter.
"Franktitude is teaching consumers that the frankfurter can be a complete, flavorful and nutritious meal. It's an eating attitude adjustment," said Founder and CEO Ari Wurmann. "We see it becoming the Starbucks of hot dogs."
Like the franks, the dining environment at Franktitude is chic. Funky music, bright colors and light wood tables invite diners to sit down and chew slowly instead of gulping down a dog on a street corner. But the vibe is stimulating, and a meal can still be had quickly.
Franktitude's no-fuss operations make the concept an attractive investment for any entrepreneur.
There are no major pieces of cooking equipment because cooking is not required. All of the toppings are delivered washed, sliced and pre-packaged, eliminating all prep work. The only exception is tomatoes, which are chopped in a dicing machine on site.
"Franktitude was created by somebody without any restaurant experience," Wurmann said. "I created something that is simple to manage and doesn't require a full-time commitment, but can provide fresh, quality fare."
With its new culinary status, Franktitude's gourmet franks are yielding a healthy return on investment.
Franktitude's original location has posted comp-store sale increases of 13 percent each month since it opened in September 2006. Menu items range from $2.99 to $4.49.
Just as simplicity is an important element of the Franktitude concept, so is flexibility.
"Our entire concept is built on a philosophy of fresh thinking," Wurmann said, "and our approach is the same when it comes to franchising."
Franchisees can choose from three types of sites, retail space in shopping plazas, freestanding sites or a non-conventional setup such as a kiosk or mobile unit. The cost to open a Franktitude location is $130,000 to $250,000.
The franchisee fee is $25,000, but volume discounts are offered to encourage franchisees to open multiple units. Franchisees can purchase the rights to two units for $40,000 and three for $50,000.
Franktitude has few requirements in place for franchisees.
Franchisees don't need prior restaurant operations experience, only a commitment to creating employee satisfaction in the workplace and growing the brand, Wurmann said.
"We are a people company," he said. "Employees need to be treated well. That will reflect on the customer experience."
Franchisees are also given creative license to introduce specialty menu items in their stores.
"If a franchisee is passionate about adding hot dogs and mashed potatoes to the menu, we would consider that." Wurmann said. "These are things our franchisees can do that a Subway franchisee could not.We want our franchisees to be part of the adventure."
A mentoring program assists first-time Franktitude franchisees with site selection, marketing, construction, accounting, hiring, training and quality control.
Wurmann said Franktitude also has resources to connect franchisees with investors who can help raise capital for franchise locations.
"You don't need a PhD to run a Franktitude which leaves more time to focus on marketing the restaurant and increasing sales rather than running the operation," Wurmann said.
For company information, visit www.franktitude.com.
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