Q. What kind of background do I need if I’m thinking of purchasing an Outback steakhouse franchise?
Outback Steakhouse is an Australian steakhouse restaurant. Although beef and steak items make up a good portion of the menu, the concept offers a variety of chicken, ribs, seafood, and pasta dishes. The Company's strategy is to differentiate its restaurants by emphasizing consistently high-quality food and service, generous portions at moderate prices and a casual atmosphere suggestive of the Australian Outback. Each restaurant is run by a managing partner, who must invest $25,000 of his or her own cash up front and sign a five-year management contract in return for a $45,000 annual salary plus 10 percent of annual cash flow. Overseeing the managing partners are joint-venture partners or franchise partners who also have a stake. Most joint-venture partners put up $50,000 initially and receive a $50,000 annual base salary plus 10 percent cash flow less the payout to the managing partners running each of their stores. Some of Outback's few franchisees also have franchise operating partners who are stakeholders with arrangements similar to the joint-venture partners.
- Elizabeth Miranda
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