Rascal House - Franchise Q & A

Q A With Matthew Philips

1. How was your franchise/opportunity originally conceived and started? Founded in 1980 by dynamic restauranteur duo Mike and Fouly Frangos, Rascal House is a true American success story. Mike and Fouly meticulously built a unique concept which featured variety, quality, service and presentation.  After decades of perfecting operations, Mike finally agreed to the demands for more stores around the region. Today, Rascal House offers its franchise expansion program as a unique business opportunity.  Now available to properly qualified operators and investors, the Rascal House team is ready to transform the quick service industry with its progressive franchise concept. 2. What was your original vision for your company? How has that changed over time? Rascal House is not your typical pizza shop, nor is it your standard quick service or fast food restaurant. Rascal House is an elevated quick service restaurant with a pizza focus. When our founders set out to create Rascal House, they did it with two requirements in mind: the food must match their standards—quality, variety, affordability, and presentation—and the brand must have robust systems and procedures in place to make the business a success.  As a result, the Rascal House menu features an impressive variety that offers classic favorites everyone loves—without sacrificing quality for quantity. Ingredients are meticulously sourced and tested to arrive at the perfect balance of integrity and affordability, making our food approachable for every guest. Finally, our ability to effortlessly produce each menu item at scale for 1 person or 1,000, plus a professional catering presentation allows Rascal House product to fit in whether it is in the board room or the backyard. Our proprietary Rascal House operating procedures and systems in place allow our high-volume operation to run smoothly year after year and eliminate the guesswork when it comes to opening and operating a successful restaurant business. 3. What do you believe is the single most important factor when choosing a franchise?
The people and the culture.
4. Why should someone choose your franchise over other similar franchises?
If you truly inspire to be part of an emerging brand and have a passion for starting a legacy for you, your family, your community, Rascal House has the capacity to do all those for you efficiently and effectively.
5. What makes your industry attractive?
Essential brand with very little decline in business even during the worst of times. Pizza focused with a wide array of menu items really allows us to capture larger audiences and offer a unique quick serve concept to millennials, business professionals and families looking for something different on the dinner table.
6. What types of qualities do you look for in potential franchisees?
Restaurant experience, passion for people, strong work ethic, determined, systematic, coachable, high five kind of energy.
7. What do your franchise fees and royalties cover?
Marketing efforts both locally and globally to spread the word of Rascal House across the country.  We are constantly investing in our digital presence, online ordering systems and ways to make the experience for our employees even better with colleague retention and benefits.
8. How do territories work for your franchisees?
Due to our current footprint, we do not have Rascal Houses scattered at every corner or neighborhood. Generally; most markets are open for single and multiple restaurants to be operated. We would craft franchise agreements for multi-unit restaurants and be certain to eliminate any overlap or competition between same brand locations.
9. Why has your franchise model been successful?
We have taken the time to create our model from scratch and make it stronger over the years. Everything has been ironed out about to insure for a smooth transition for our franchisees to join our team. WE didn't rush perfection and we are only interested in the best franchisees to join the Rascal House family.
10. Where do you see your franchise in 5 years and 10 years?
We have a 3 year goal to have 20-25 units sold and a 10 year goal to have 100 units sold.
11. What is your favorite advice for new franchisees to help them succeed?
Follow our path to success. We will walk you through every step. Stay consistent and display your passion to join the team on your quest to be part of something really unique and special.
12. What would you tell potential franchisees that may be nervous about the financial burdens of starting a franchise?
You don't do anything special without some risk. We have 40 years of success and testimonials to support our claims. Together; we will map out your path to success. Every candidate brings something different to the table, we will carefully examine all elements and guide you to the appropriate source or outcome. At the end of the day, your success is our success. We want to share your success to the next franchisee to join our team.
13. Can you explain your financial assistance (if applicable)?
We have partnered with Benetrends, a leader in the franchising world. They have the experts in place to guide future candidates through the process efficiently utilizing all the different avenues ensuring that we make the best possible decision for all parties.
14. On average, how long does it take to start a new franchise from the franchisees point of view?
Once a franchise agreement is signed, generally 6 months later we can get ready for grand opening.
15. What was your background and experience before founding this franchise?
The current owner Niko, son of the original founders had a strong background in film and art which is highly displayed in Rascal Houses branding and marketing strategy. Niko always was connected to the brand and the people around it. Over the last 10 years specifically, himself and the team have taken all the steps to put the brand in a position to scale across the Midwest and globally.
16. Do you have any franchisee testimonials or success stories that you would like to share?
Do you have any questions you would like to add?  Or are there any questions on the list that you would like worded differently?
If you want to join a team where your voice is heard, your thoughts are listened to from the owner and leadership team, this is a golden opportunity to join a emerging brand and spread the culture of Rascal House in Cleveland in your local community.
1) Provide an overview/ description of your industry. Include reasons why it’s a great industry to start a business in today.
 Essential brand with a diverse menu of Americas favorites. Our average unit of 1.7 million is impressive and franchisees are experiencing 16-17% returns annually on their investments. The magic of food is that it will never go away, people get hungry, and then make themselves happy by indulging on all of the Rascal House menu items.
2) How has your industry changed in the last 10 years? 20 years?
Digitally and social media are 2 huge factors that brands continue to build and strategize around. We have adapted to the times, stayed true to who we are and continue to listen to our customers while being observant of what every other brand is doing. We avoid mistakes and make strides to enhance the overall customer experience.
3) What trends do you see in your industry over the next 5 years? Next 10 years?
Technology, Big Data (more aware of finances to make adjustments on the go) People valuing the luxury of sit down restaurants more then ever.
4) What is the biggest concern about your industry that a franchisee candidate should be aware of and investigate?
Make sure your properly disclosed. Multiple companies shed away from really showing you the numbers which can sometimes mislead franchisees to believe things that are not always factual. Its important to know all the info in item 19 from the FDD
5) Why do you think your company stands out in the industry?
Emerging brand with a unique menu and a leadership team dedicated to winning and success.
6) What makes your franchise/ business opportunity more attractive than your competitor’s?
Your not just going to be another peanut in the brand working for a owner that you may not ever get to meet or engage in. This is a direct opportunity to work with the Owner and franchisees themselves who have built the emerging brand over the last 40 years.
7) Describe the ideal candidate. Do you think your requirements are any different than your competitor’s?
Strong managerial background of 10-20 employees preferably a 1 million dollar operation.  Needs to have as close to $100k in liquid cash, investments and the ability to finance a strong portion of the investment as needed. Most love people, training and development and have a strong track record of success. Must thrive on following a system and be able to attract and retain talent. Must do things cause its the right thing to do.
8) What’s the strongest skill you require in a candidate?
Aligned core values = Respect
9) Describe the working environment of your franchisees (indoors, home office, mobile, etc). Is your environment typical of other companies in your industry?
Open at 10am, closes at 230am. We capture business at all hours which makes our site location so important in our process. We will work together with franchisees to help them get educated on how to pick the best location for their future Rascal House restaurant.
10) Why has your company been successful?
Everybody has a seat in the organization and knows exactly what there goals are and they are all aligned towards a current long term vision. When you got the right people, doing the right activities, success will present itself
11) What advice would you give someone interested in buying a franchise in your industry?
Do your homework and make sure your proud of the team you are joining. The team your joining is going to be family, you are going to spend a lot of time with them.
 12) How much experience in this industry should a franchisee candidate have should they consider buying a franchise in your industry?
Restaurant experience is very important as a owner operator because of the complexity of Rascal House. You will need to have experience managing a staff of closer to 20 plus employees and have some knowledge of QuickBooks, hiring & firing as well as other key areas of management. Lack of those skills can result in a more difficult learning curve and might not allow for advancement in our process.
Do you have any questions you would like to add? Or are there any questions on the list that you would like worded differently?
We are really excited to talk to you so give us a call.
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