Eegee’s is a well-loved fast-food restaurant chain that started in Tucson, Arizona. It was founded in 1971 by Edmund Irving and Bob Greenberg. What began as a lemonade truck selling frozen lemon drinks near schools and events quickly grew into a popular restaurant business. The first permanent store opened in 1972.
Today, Eegee’s is best known for its signature frozen fruit drinks called “eegees,” which come in various flavors like lemon, strawberry, and more. Customers also enjoy their sandwiches, subs, and fresh salads. The chain has about 25 locations, mainly in Tucson but also in the Phoenix area and Casa Grande.
Eegee’s is recognized for its strong local roots, fresh ingredients, and friendly customer service. The brand stands out because of its simple yet tasty menu and its iconic frozen drinks, which keep customers coming back.
Eegee’s Franchise Cost
One of the key things you need to know before starting a franchise is the cost. For Eegee’s, the initial franchise fee is typically in the range of $25,000 to $50,000. However, the total investment required to open a new location will be higher.
This includes expenses such as:
- Leasing or buying a suitable property
- Building and interior design costs
- Kitchen and restaurant equipment
- Initial inventory and supplies
- Marketing and advertising
- Staff hiring and training
Overall, the total cost to open an Eegee’s franchise can range from approximately $400,000 to $600,000 or more, depending on the location and size of the restaurant.
Additionally, franchisees are required to pay ongoing fees. These usually include:
- Royalty fees, which are a percentage of your gross sales (often around 5% to 6%)
- Marketing fees, which help fund national or regional advertising campaigns
It is important to budget carefully for both the startup costs and ongoing fees to ensure the business remains profitable.
Eegee’s Franchise Conditions
To become an Eegee’s franchisee, you need to meet certain conditions. The company wants to make sure each franchise location maintains the brand’s reputation and quality. Some of the main conditions include:
Experience: While prior restaurant experience is helpful, it is not always mandatory. However, you should have strong business skills and a passion for customer service.
Financial Stability: You need to demonstrate that you have enough capital to invest in the franchise and to cover operating expenses until the business becomes profitable.
Commitment: Franchisees must be willing to devote time and effort to managing the restaurant or hiring qualified managers to run daily operations.
Location: Eegee’s prefers franchisees who can secure locations in high-traffic areas with good visibility and easy access.
Compliance: You must agree to follow all Eegee’s brand standards, including menu offerings, service style, and marketing guidelines.
Training: New franchisees and their key staff are required to complete training programs provided by Eegee’s.
Eegee’s Franchise Process
If you decide to open an Eegee’s franchise, here is the usual process you can expect:
Initial Inquiry: Start by submitting an inquiry on the official Eegee’s franchise website or contacting their franchise team directly. They will provide you with general information about the franchise opportunity.
Franchise Application: If you are interested, you will be asked to complete a detailed franchise application. This will include your personal and financial background, business experience, and your plans for the franchise.
Disclosure and Review: Eegee’s will send you a Franchise Disclosure Document (FDD). This document contains important information about the franchise system, fees, obligations, and earnings claims. It is critical to review this carefully and possibly consult a lawyer or financial advisor.
Interview and Meeting: You may be invited to meet with Eegee’s franchise representatives for an interview. This helps both parties assess fit and discuss expectations.
Site Selection and Approval: You will work with Eegee’s team to find a suitable location. The site must be approved by the company before you proceed.
Franchise Agreement: Once everything is agreed upon, you will sign the franchise agreement. This legally binds you to follow the terms and operate your business under the Eegee’s brand.
Training: You and your staff will attend the company’s training program. Training covers all aspects of running an Eegee’s restaurant, including food preparation, customer service, and operations.
Store Build-Out: You will begin constructing or renovating your restaurant to meet Eegee’s standards.
Grand Opening: After setup and staff training, you will officially open your doors to customers.
Throughout this process, Eegee’s provides support and guidance to help you succeed.
Eegee’s Franchise Profit
Owning an Eegee’s franchise can be a profitable business if managed well. The exact profit will depend on many factors, such as location, operating costs, and how well the restaurant is run.
Generally, the fast-food industry has lower profit margins than some other types of businesses, but it also has high volume potential. Eegee’s brand popularity and loyal customer base give franchisees a good chance of steady sales.
Typical profit margins for a fast-food franchise like Eegee’s might range from 10% to 15% of gross sales. For example, if your restaurant brings in $1 million in annual sales, you might expect a profit of $100,000 to $150,000 before taxes.
To increase profit, franchisees should focus on:
- Controlling food and labor costs
- Providing excellent customer service to encourage repeat business
- Using local marketing strategies to attract customers
- Maintaining high quality and cleanliness
Eegee’s also benefits from a relatively simple menu, which helps keep costs and training easier compared to restaurants with more complex offerings.
Conclusion
Eegee’s franchise is a promising opportunity for entrepreneurs interested in the fast-food industry. With its strong brand, signature frozen drinks, and loyal customer base, Eegee’s offers a unique position in the market. While the initial investment is substantial, the proven business model and ongoing support from the company can help new franchisees build a successful restaurant.
If you have a passion for food service and community, and you want to be part of a local favorite that has grown steadily for over 50 years, Eegee’s franchise could be the right path for you. Careful planning, hard work, and dedication will be key to making your Eegee’s franchise a success.
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