Newk's Eatery franchise
2023 filing · April 30, 2023Fewer locationsShares sales figures
Newk's Eatery at a glance
A fast-casual restaurant serving sandwiches, salads, pizzas and soups. At the end of 2022 there were 100 Newk's Eatery locations in the US, 73 franchised and 27 company-owned.
The business
- Franchisor
- Newk's Franchise Company, LLC
- The company that sells the franchises
- Franchising since
- 2005
- 18 years of selling franchises
- First location
- 2004
- Franchisor based in
- Jackson, Mississippi
What you pay
- Cost to open
- $1.01M–$1.34M
- Fee, build-out and opening working capital
- Franchise fee
- $40,000
- Paid once, when you sign
- Royalty
- 5%
- 5% of net sales, paid weekly, plus 1.75% to the national marketing fund
- Brand fund
- 1.75%
- 1.75% of net sales, paid with the royalty
- Renewal fee
- $5,000
- When the agreement ends and you sign again
- Agreement length
- 10 years
- Territory
- Limited
- Limited protection
- Franchisor financing
- None offered
Where it is
- US locations, 2022
- 100
- Franchised and company-owned
- Franchised
- 73
- Company-owned
- 27
- Change in 3 years
- −30
- Franchised locations, 2020–2022
- States
- 14
- Most in Texas, Mississippi and Georgia
From Newk's Franchise Company, LLC’s 2023 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Newk's Eatery among all franchises with the same figure.
| Figure | Newk's Eatery | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $1,175,850 | Costs more than 86% of franchises |
| Franchise feePaid once, when you sign | $40,000 | Lower than 46% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5% | Lower than 69% of brands with a set rate |
| US locationsFranchised and company-owned | 100 | More than 76% of franchises |
| Sales per locationYearly, as the brand reports it | $2,224,430 | Higher than 90% of brands that share sales figures |
| Sales against cost to openYearly sales over the cost midpoint | 1.9× | Higher than 61% of brands that share sales figures |
How much a Newk's Eatery franchise costs
Opening one Newk's Eatery costs an estimated $1,014,350 to $1,337,350. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are leasehold improvements; ($422,500 to $587,000) and fixtures, furnishings & equipment ($415,000 to $527,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $40,000 | ||
| Business Licenses & Permits | $1,500 | $3,000 | |
| Leasehold Improvements; | $422,500 | $587,000 | |
| Fixtures, Furnishings & Equipment | $415,000 | $527,000 | |
| Architect Fees | $34,850 | $48,850 | |
| Rent and Utility Deposits | $8,000 | $16,000 | |
| Other Professional Fees | $5,000 | $5,500 | |
| Insurance Deposit | $5,000 | $10,000 | |
| Initial Inventory of Food and Paper Supplies | $12,500 | $18,000 | |
| Training Expenses | $22,500 | $30,000 | |
| Grand Opening Advertising | $15,000 | ||
| Additional Funds (for initial period of operations) | $32,500 | $40,000 | |
| Total | $1,014,350 | $1,337,350 | |
Source: Newk's Franchise Company, LLC, 2023 filing, page 22
Newk's Eatery franchise fee
The franchise fee is $40,000. You pay it when you sign the franchise agreement.
Source: Newk's Franchise Company, LLC, 2023 filing, page 14
Royalty and ongoing fees
| Royalty | 5% of net sales, paid weekly, plus 1.75% to the national marketing fund. |
|---|---|
| Brand or marketing fund | 1.75% of net sales, paid with the royalty. |
| Point of Sale Hosted Solutions Software | $200-$400 monthly per location |
| Transfer Fee | An amount equal to 50% of our then-current initial franchise fee |
| Renewal Fee | $5,000 |
| Local Advertising | 1% of Net Sales |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Newk's Franchise Company, LLC, 2023 filing, page 16
Other fees as filed, from pages 16–18. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Newk's Eatery publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
- Average net sales
- $2,224,430
- Median net sales
- $2,065,499
Yearly figures for fiscal 2022, covering franchised covered restaurants open the full fiscal year (68 locations). The average is about 1.9 times the midpoint of the cost to open.
Sales are what a location takes in before rent, payroll, royalties and other costs, not what its owner keeps.
Source: Newk's Franchise Company, LLC, 2023 filing, pages 59–63
Growth and closures
Share of franchised locations, 2022 / 2020–2022. Typical means the median: half of brands are above it, half below.
| Measure | Newk's Eatery | Typical sandwich brand | Typical franchise |
|---|---|---|---|
| GrowthNet change in franchised locations | −16% / −29% | 0% / 0% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 9.2% / 22% | 2% / 13% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 10% / 13% | 0% / 0% | 0% / 0% |
Typical sandwich brand is the median of the 35 brands in sandwich franchises with three years of counts.
How Newk's Eatery compares
Of the 80 sandwich franchises on this site, Newk's Eatery is the 76th cheapest to open and the 18th largest by number of locations.
| Figure | Newk's Eatery | Typical sandwich brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $1.01M | $321K | $222K |
| Cost to open, high end | $1.34M | $683K | $477K |
| Franchise fee | $40K | $32K | $40K |
| Royalty | 5% | 6% | 6% |
| Brand fund | 1.8% | 2% | 2% |
| Sales per location | $2.22M | $857K | $794K |
| US locations | 100 | 31 | 21 |
| Shares earnings figures | Yes | 50 of 80 | 2,147 of 3,352 |
Typical is the median across the 80 brands in sandwich franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2020 | 90 (−13) | 20 | 0 | −13 |
| 2021 | 87 (−3) | 18 | +3 | −6 |
| 2022 | 73 (−14) | 27 | +3 | −17 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: sandwich and sub franchise costs and franchise failure rates.
Source: Newk's Franchise Company, LLC, 2023 filing, page 66
Where Newk's Eatery locations are
At the end of 2022, Newk's Eatery had locations in 14 states. The most are in Texas, Mississippi and Georgia.
- Texas18
- Mississippi17
- Georgia14
- Alabama13
- Arkansas9
- Florida8
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| Texas | 15 | 3 | 18 |
| Mississippi | 9 | 8 | 17 |
| Georgia | 14 | 0 | 14 |
| Alabama | 11 | 2 | 13 |
| Arkansas | 9 | 0 | 9 |
| Florida | 2 | 6 | 8 |
| Tennessee | 3 | 5 | 8 |
| Louisiana | 5 | 2 | 7 |
| Colorado | 1 | 0 | 1 |
| Indiana | 1 | 0 | 1 |
All 14 states
| Maryland | 1 |
|---|---|
| North Carolina | 1 |
| Oklahoma | 1 |
| South Carolina | 1 |
Source: Newk's Franchise Company, LLC, 2023 filing, page 68
Who owns Newk's Eatery?
Newk's Eatery franchises are sold by Newk's Franchise Company, LLC. It is a subsidiary of Newk’s Holding Company.
From Newk's Franchise Company, LLC’s 2023 filing, page 10.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Newk's Franchise Company, LLC, 2023 filing, litigation on page 14, bankruptcy on page 14
Newk's Eatery filings
The figures on this page come from Newk's Franchise Company, LLC’s 2023 filing, issued April 30, 2023, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2023 filing | April 30, 2023 | NASAA depository | Costs, fees and locations, 2020–2022 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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