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Franchise Opportunities

Questions & Answers

The purpose of this page is to provide you with more information about Arctic Circle Restaurants, Inc.’s Franchise Program. The answers to these frequently asked questions will help you decide whether to contact us for more information concerning your interest in our franchise opportunities.

This information is not intended to replace the information contained in our Franchise Disclosure Document.

QUESTION:What is the cost of an Arctic Circle Franchise?
ANSWER:The initial Franchise Fee is $25,000. The initial Franchise Fee is paid upon execution of the Franchise Agreement.
QUESTION:How long is the term of the Franchise Agreement?
ANSWER:The initial Franchise Agreement is for a term of 15 years, with the option of an additional 15 years for 50% of the Franchise Fee at the time of renewal.
QUESTION:What are Arctic Circle’s Royalty Service and Advertising Fees?
ANSWER:Our Royalty and Service Fee is 3% of Gross Sales, exclusive of any applicable sales tax, due monthly. Our Advertising Fee is 3.5% of Gross Monthly Sales.
QUESTION:Do I have to purchase, or may I lease the land and building for my Arctic Circle Restaurant?
ANSWER:You may do either – whether you purchase or lease the real estate should be determined by your personal preference and your financial strength.
QUESTION:What help will I receive in building construction?
ANSWER:You will receive two sets of plans with detailed specifications. Arctic Circle Restaurants, Inc. will help with site layout, construction advice and general consultation. You will be charged for additional sets of plans or modifications.
QUESTION:Where do I purchase my signs and equipment?
ANSWER:Arctic Circle Restaurants, Inc., will supply each franchisee a detailed list of all equipment and signs needed. You must purchase all signs from an approved supplier.
QUESTION:Where do I purchase my products and supplies?
ANSWER:There are approved distributors who provide a full line of products and supplies. Also, we have an Approved Brands List for consistency of quality products.
QUESTION:Will I receive any training or assistance in opening an Arctic Circle Restaurant?
ANSWER:Initially, you and/or your manager will be required to train in one of Arctic Circle Restaurants, Inc. training stores for a period of five weeks. This training program has been designed to cover all areas of importance to your success as a franchise owner. Included are step-by-step procedures in the use and understanding of the Operations Manual, Methods of Inventory Control, Bookkeeping and Accounting, Advertising, Promotion Methods, Corporate Policies, Hiring and Training of Employees, and many detailed operational techniques. In addition, during the first week of opening, we will provide assistance by Corporate Personnel.
QUESTION:What on-going support will I receive?
ANSWER:Each restaurant is assigned to a Franchise Business Consultant. This individual is a direct liaison between the Franchisee and the Corporate Office. They also assist the Franchisee with Operations, Marketing Programs, and Review of Profit/Loss Statements.
QUESTION:Ok, this sounds really exciting. I am ready to proceed. What’s next?
ANSWER:Fill out the enclosed confidential Franchise Application and Financial Statement and mail it to our Corporate Office.

We have attempted to answer the most commonly asked questions about an Arctic Circle Franchise. We are sure you have a few questions we haven’t covered, so please feel free to contact our office.

ARCTIC CIRCLE RESTAURANTS, INC.
411 West 7200 South – Suite 200
P.O. Box 339, Midvale, Utah 84047
(801) 561-3620