Franchise Deep Dive: TGI Friday’s Franchise Costs, Fees, Profit and Data

TGI Friday’s is a bar-and-grill franchise concept that was established in 1965. When Alan Stillman launched the company, it was incredibly successful and one of the only places where young adults could be both relaxed and excited.

TGI Friday’s offers franchises in the U.S. and internationally. Though there are hundreds of units established globally, the brand is taking on a rebrand of sorts, emphasizing its history as a bar. As such, it is seeking franchisees that have prior experience in the restaurant or food business and are interested in opening at least three locations in a relatively short time span.

There are over 900 TGI Friday’s locations across 50 countries. As it grows and is refreshed, the brand is “embracing and celebrating [its] heritage as a bar. A bar that just happens to serve killer food in an environment that always feels like happy hour on a Friday afternoon.”

While the brand is working to expand, it is focusing on partnering with the right people and bringing ambitious owners into the network to grow in a healthy way.

TGI Friday’s leverages three primary location types: freestanding, mall and inline. While each has its own requirements, the larger strategy works to establish locations in high-traffic areas that are proximal to “evening and late-night generators.” By placing its units close to retail, movie theaters and other restaurant concepts, TGI Friday’s is able to leverage existing demand to grow its own customer base.

The unique requirements of each site type are as follows:

• Two or more acres

• Complete building signage, pylon and monument direction signs

• Excellent ingress and egress from primary frontage road

• Major regional mall, defined as being one million or more square feet of Gross Leasable Area

• Complete brand signage, interior/exterior directional signage and main pylon listing

• Complete frontage signing, directional signs and blade signs as needed

• Convenient access to site from parking, pedestrian and public transportation

TGI Friday’s does not make its financial representations publicly available.

TGI Friday’s does not publish investment specifics, but the franchise development site does note that prospective franchisees should have a net worth of at least $3 million with $1 million in liquidity.

For prospective owners looking to re-franchise existing locations, the net worth and liquidity requirements are the same, and the franchisor notes “$500K per store acquired” and “$300K (liquid) per store acquired,” presumably noting the investment range should an owner choose to re-franchise a number of locations that would exceed the $3 million and $1 million (liquid) requirements.

All franchisees are expected to be driven to develop at least three restaurants.

TGI Friday’s assesses a $50,000 franchise fee per restaurant.

• Ray Blanchette — Chief Executive Officer and President

• Samuel Langley — Vice President of Information Technology

• Jennifer Adams — Director of Operations

• Kathleen Schloth — Chief Procurement Officer, Global Supply Chain and Licensing

• TGI Fridays SM Franchise Support

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