Thank You For Your Interest!

Thank you for your interest in Fuddruckers. We take pride in serving the Worlds Greatest Hamburgers and creating the Worlds Greatest Franchise. Across the USA you will find Fuddruckers voted Best Burger time and time again. According to the CitySearch poll, when it comes to Americas Best Burgers there is no national burger-serving entity that is even a close second to Fuddruckers. We have developed a new building prototype and design package that has dramatically reduced the investment required to open a new Fuddruckers. We have also introduced the Fudds Express and other concepts, which allow our restaurants to open in new and unique venues. We continue to develop new corporate restaurants and have now opened up many new territories for single and multi-unit franchises. A comprehensive support system is in place to help you open and operate a successful Fuddruckers franchise. If you are interested in being part of the team serving the Worlds Greatest Hamburgers and being part of the Worlds Greatest Franchise, we welcome an introduction. Please contact us today. Fuddruckers Build Your Own (866) 691-0404 www.fuddruckers.com

How It All Began

One can really never underestimate the power of a great hamburger.
Michael Cannon

The first Fuddruckers opened in San Antonio, Texas, in 1980. The concept was born when founder, Phil Romano, was unable to find a restaurant that served a great, fresh hamburger in a sophisticated, yet comfortable setting. That first restaurant is still in existence on Botts Lane in San Antonio. While the look may have changed, the Fuddruckers of today is not much different than that 1980 restaurant concept. Fuddruckers operates and franchises restaurants that specialize in high quality, upscale hamburgers in a variety of sizes that are cooked to order. The emphasis today is the same as it was in 1980 we use only the freshest ingredients and we give our guests the power of choice. We encourage guests to garnish their own entrees by providing an array of farm-fresh produce and condiments. Our restaurants serve only the freshest beef, offer free drink refills, and feature on-premise bakeries where bread and dessert items are baked fresh daily. Its truly a build-your-own meal experience. Over the years, Fuddruckers has evolved from just a beer and burgers joint into a fun, fastcasual dining destination that focuses on great food and friendly, attentive guest service. The mainstay of our menu is still the hamburger, which we now offer in 1/3, 1/2, 2/3, and one-pound options. Beyond our signature entre, we also offer a variety of chicken sandwiches, salads, steak sandwiches, hot dogs, kids meals, shakes and bakery items. To further broaden our variety and appeal we also offer healthier burger options like our Veggie Burger, Turkey Burger and Buffalo Burger. The Fuddruckers story continues today as we develop new menu items to please even the most discerning of guests, update our look and image, and build new corporate and franchise restaurants across the country and around the globe.

The Fresh Face of Fuddruckers

With the brands strength lasting more than 25 years, we are looking to the future and are creating a fresh face for Fuddruckers. The evolution is well underway with Michael Cannon, Magic Brands, LLC owner and restaurant re-tooling genius, leading the charge. Since purchasing the chain in 1998, Cannon has broadened Fuddruckers appeal by expanding the menu and defining the companys philosophy of If it aint great, we dont do it! Although changes are definite, Fuddruckers original concept is the mainstay. In 1980, Fuddruckers founder, Phil Romano, converted an old bank building on Botts Lane in San Antonio, Texas, into the first Fudds. This is where the perfect burger was served and the gourmet hamburger empire began. Today, the restaurants continue to focus on Romanos concept: upscale burgers that are cooked to order with guests encouraged to create their own burger masterpiece at the fresh produce and condiment bar. Only the highest quality, fresh, neverfrozen beef and baked-daily buns and bakery items are served to guests. Fuddruckers continues to be the leading quick-casual restaurant in the industry by offering the highest quality, best tasting food and fast, friendly service in a casual yet energetic atmosphere. Providing not only the Worlds Greatest Hamburger, but the Worlds Greatest Hamburger Experience may seem an ambitious goal, but it is one that Fuddruckers relentlessly pursues.

WHATS AHEAD
Our strategy is not just about scale, but more about quality and we will not compromise on the professionalism and sustainability of our owners.
Peter Large, President/CEO

Fuddruckers continues to generate ways to keep our guests engaged and coming back. We have developed a new and improved facility prototype that significantly reduces the franchisee investment while improving unit economics. The new look emphasizes and focuses on the connection between our Worlds Greatest Burger concept and its place in the American culture. While these changes take place, the key to Fuddruckers culture and ultimate success will still remain front and center high quality beef, fresh produce, in-store bakeries, and the ability to build your own burger. In addition to the new prototype, there is a tremendous amount of teamwork and coordination going into our new products, menu initiatives, and marketing of the Fuddruckers brand. While we have streamlined the menu to focus on the burger and other top selling Fudds favorites, we continue to keep our guests excited and coming back to see what new product Fuddruckers will come up with next. With our dedicated in-house chef, we are not just keeping up with the competition, but are proving to be an industry leader in culinary creations. TV advertising and local restaurant marketing are two of the avenues that we are currently capitalizing on. New television ads are being created with customizable features and media buyers with experience in reaching the right target audience (in this case, the Fuddruckers guest) at the right price are accessible to each franchise owner. All restaurant owners and managers are empowered to reach out to their community by utilizing the online Local Restaurant Marketing Toolkit. The online toolkit is filled with ideas, instructions, and marketing materials that are downloadable, customizable, and printable all onsite. We continue to explore new avenues of reaching future Fudds fans and increasing the number of times our current guests frequent our restaurants. The future of Fuddruckers is bright, particularly because we are employing strategic growth planning, smart operational practices, and innovative marketing initiatives. But more importantly, we have never lost sight of what makes us special and what has made us successful.the Worlds Greatest Burger and ultimately the Worlds Greatest Burger experience.

SUCCESS STORIES
George & Rebecca Almeida
Rebecca and George Almeida are long time Fudds fans and seasoned franchisees. Their story begins in the mid 80s as guests of the Concord, California location. They fell in love with the incredible food and family-friendly atmosphere so much that they dined at their local Fuddruckers at least 3 times a week. This love grew into a job for Rebecca working with the restaurant owner. Just three years later, in 1990, the Almeidas were approached by the owner who offered them the restaurant. Understanding the strength in Fuddruckers great Build Your Own concept, the long-lasting brand recognition and the loyal following, George and Rebecca excitedly took the plunge into franchise ownership. Today, the Almeidas successfully own and operate 8 Fuddruckers franchises in California, Oregon, and Idaho. The key to success, according to George and Rebecca, is service. They treat their Fuddruckers guests as they would guests in their home. This level of service is translated through their friendly and attentive Managers and Associates. The Almeidas also believe that community involvement through hosting fundraisers, sponsoring golf tournaments, and providing catering and foodservice for area hospitals and charitable organizations brings them closer to their guests. Fuddruckers has been a real blessing for us.

Allen & Lee Ann Johnston

High school sweethearts Lee Ann and Allen Johnston were recruited into the restaurant industry many years ago by Jerry Richardson. Richardson, former owner of the largest Hardees franchise and Quincys Family Steakhouses and current owner of the Carolina Panthers NFL franchise, asked Lee Ann to become a member of his restaurant team while she was still in high school. Lee Ann became the first biscuit cook for Hardees and eventually became

Richardsons personal administrative assistant. Upon finishing college, Allen was recruited over to the Quincys organization where he became a District Manager. Recognizing their talent and passion, the Johnstons boss and mentor suggested that they research the gourmet hamburger craze that was hitting the food industry. Taking Richardsons advice, Lee Ann and Allen discovered the restaurant that proclaimed to serve the Worlds Greatest Hamburgers. Fuddruckers stood out to us because of its simplicity, quality and broad popularity, Allen explains. In 1985, The Johnstons formed The Butcher The Baker Company and opened their first Fuddruckers franchise in Spartanburg, South Carolina. Since that time, they have opened Fuddruckers restaurants in South Carolina, North Carolina and Tennessee. Today, their passion and dedication for the brand and for their Fuddruckers guests is stronger than ever. Fuddruckers stood out because of its simplicity, quality and broad popularity.

Jim Boland
Jim Boland began his career in the restaurant industry in 1980 as a Pizza Hut assistant manager. In 1993, Jim began working for Fuddruckers parent company in the contract food service division. Upon realizing what the Fuddruckers brand represented uncompromised quality, burgers built your way, and an unforgettable dining experience - Jim requested to work directly for Fuddruckers. He promptly became the Senior Vice President of Operations and oversaw one half of the companys restaurant operations. In June of 1998, Jim purchased two existing Fuddruckers restaurants and officially became a Fuddruckers franchise owner. Jim saw this as an opportunity to grow professionally while having lots of fun. It has proven to be a great relationship ever since. Jim states, Owning and operating Fuddruckers restaurants has been very challenging, yet very rewarding. I feel I have the opportunity to create my own destiny in regards to sales, marketing, staffing,

personnel development and the overall success of the business. Fuddruckers allows a franchisee to really exert their entrepreneurial skills and creativity. In addition to his original 1998 restaurant purchases, Jim has successfully opened 2 more restaurants and plans to open six more Fuddruckers restaurants in the upcoming years. Fuddruckers allows a franchisee to really exert their entrepreneurial skills and creativity.

SUPPORT SERVICES
Many factors contribute to the success of your restaurant. We provide Fuddruckers franchisees with the help needed to get off to a great start and ensure ultimate success through comprehensive support systems that we are constantly expanding and refining. The following are services we offer our franchisees:

Design/Construction
Our Design/Construction Department is focused on maximizing your opportunity for success by providing: Site Design Services and Support Direct Sources of Competitively Priced Contractors/Equipment Design Consultation and Review General Development Support

Training
At Fuddruckers, we understand the importance of a comprehensive training program to prepare your managers and team members to run a smooth and successful restaurant. Our Training Department has developed an extensive program that includes: Owner/General Manager Classroom-Style Operations Training Management/Team Front- and Back-of-the-House In-Store Training Restaurant Opening Training and Support

 Program and Product Training and Support Manuals Covering Recipes, Food Handling, Preparation & Portioning, and Service *All new franchise partners are required to send a minimum of three managers through the Fuddruckers-approved training program.

Marketing
The Fuddruckers Marketing Department is dedicated to maintaining brand consistency, building brand strength, and creating top-of-mind awareness in your community. Franchisees receive marketing support through the following: Menus and Signage Intranet and Internet Websites Product Promotions Guest Loyalty Programs Local Store Marketing Materials TV, Radio, and Print Production Logo/Brand Usage Guidelines

Operations
Ongoing operational support allows you to stay focused on enhancing your operations and exceeding customer expectations. Each franchisee is assigned a Franchise Business Consultant (FBC) that has extensive restaurant operations experience and insight. The FBCs support you and your management team by providing the following: New Restaurant Opening Assistance In-Store Visits to Analyze Operations and Brand Consistency Communication Between You and the Corporate Support Center Purchasing and Product Recommendations Suggested Pricing Guidelines Best Practices/Guest Service Information

1. Initial Contact
You may contact us by phone, email, or online. Upon receiving your request for information, a Franchise Development Coordinator will call and introduce you to Fuddruckers and our franchise development process and get you on your way to Building Your Own Fuddruckers franchise restaurant.

2. Submit Franchise Application

Fuddruckers seeks franchise owners that are committed to hands-on operation of their business or that have the knowledge and ability to develop a full-time management team dedicated to successfully operating their franchise. With capitalization being a key component to any business venture, we require that you submit information regarding adequate financial resources to facilitate the development of your Fuddruckers franchise. This information is gathered through the completion of the preliminary Franchise Application. This application does not create a binding contract. Once your completed Franchise Application is received, we will determine if your geographic area of interest is available. If your area of interest is not available, we will recommend alternative areas of availability. At this point, all qualified applicants receive a copy of the Fuddruckers Franchise Disclosure Document marking the beginning of the due diligence process.

3. Due Diligence
The due diligence phase serves to confirm the information you provided on your Franchise Application. This is also a time for you to gain more insight into owning and operating a Fuddruckers restaurant. We encourage you to closely review the Franchise Disclosure Document, visit with existing franchisees, and call on your Franchise Development Coordinator to answer any questions you may have.

4. Discovery Day (Austin, TX)

The Fuddruckers Discovery Day serves as an opportunity to meet with you face-to-face to discuss your interest and objectives, and establish expectations and goals. We will invite you to our corporate support center in Austin, Texas to meet with members of our leadership team and the various divisions that provide support to our franchise community. We will discuss our support services with you and answer any questions that you may have about the Fuddruckers franchise program. Items that we will review during Discovery Days include: Fuddruckers History Our Culture Financing Site Approval Process Design & Construction Training Operations Support Purchasing & Culinary Marketing

5. Franchise Agreement / Development Agreement

Upon completion of Discovery Day, your Franchise Development Coordinator will contact you regarding final approval of your new Fuddruckers franchise restaurant. We will then enter into a Franchise Agreement (single location) or a Development Agreement (multiple locations). At this time and with much enthusiasm and pride, we will begin to Build Your Own Fuddruckers franchise restaurant. Congratulations! The door to becoming a successful Fuddruckers franchisee has just opened.

START-UP & DEVELOPMENT INFORMATION

Fuddruckers offers single and multi-unit development franchise opportunities.

Total Initial Investment per Location

Your total initial investment is dependent upon location and unit square footage. The current prototype square footage is 5,500 - 6,200, yet unit square footage can range from 600 sq. ft. to 6,500 sq. ft. The areas included in your total initial investment, as well as the low and high ranges in cost are listed in the table below.

Investment Area Initial Franchise Fee Construction & Leasehold Improvements Furnishings, Fixtures & Equipment Opening Inventory Exterior Signage & Interior Signage Liability & Property Insurance Employee Training Expenses Opening Advertising & Promotions Miscellaneous Costs Additional 3-Month Operational Funds

Low* $35,000 $500,000 $290,000 $15,000 $35,000 $15,000 $20,000 $5,000 $20,000 $50,000

High* $50,000 $930,000 $360,000 $15,000 $50,000 $25,000 $25,000 $10,000 $20,000 $50,000

*Range does not include real estate and liquor license costs.

Financing
Fuddruckers does not offer financing to franchisees; however, we can provide you with contacts at financing companies that are familiar with our business.

Financial requirements include: Liquid Resources $350,000 - $400,000 Liquid Resources - Cash, Stocks, Bonds, Inventory, Etc. Net Worth $800,000 - $1 million Net Worth = Total Assets minus Total Liabilities

Royalty Fee
Fuddruckers royalty fee, which provides for the brand, operations, and support systems, is 5% of monthly gross sales.

Marketing Fee
The current marketing fee, which provides programs encouraging brand recognition, is .25% of gross sales.

Site Recommendations
The location of your new restaurant is highly critical to its success. When considering a restaurant area and location, you will be off to a great start by following the guidelines listed below Demographics
Minimum population of 50,000 in a 3-mile radius Average household income of $55,000 and above Predominance of families and children Concentration of offices and/or retail centers Employee population 20,000 in a 3-mile radius Traffic counts of 30,000+ cars a day on primary road Ability to obtain a beer and wine license

Construction Criteria

1 ton of AC per 150 square feet 120/208 3-phase 4-wire, 60-cycle AC (approximately 600 amperes) 1.5 water line 6 capped waste line and grease trap 2 capped gas line at 1800 CFH

QUESTIONS & ANSWERS

1. What makes owning a Fuddruckers franchise a great business opportunity?
Fuddruckers has enjoyed success for nearly 30 years and has proven franchising experience. We never compromise on the quality of our food products and we offer a unique Build Your Own experience for our guests. Our franchise business owners are provided support in design and construction, marketing, and operations.

2. What qualifications are required of potential franchise owners?

Potential Fuddruckers franchisees must be committed to being hands-on owner/operators and following through with all training requirements. Minimum financial requirements include having liquid resources of $350K and a net worth of $800K.

3. What is a Franchise Agreement and what is the term?

The franchise agreement, which is awarded to qualified candidates, outlines the way your franchised restaurant will work within the Fuddruckers franchise system. Franchise Agreements have an initial term of 20 years.

4. Will I need to find my own location?

Each franchisee is responsible for securing a suitable location for their restaurant. However, we do provide site selection support, demographic information, broker coordination services, site survey trips, lease review, and architectural and bid review.

5. How long will it take to open my Fuddruckers restaurant?

Franchisees typically open their Fuddruckers restaurants within 12 to 15 months after signing the Franchise Agreement. Certain factors may affect the length of time required to open your restaurant. These factors include locating and securing a satisfactory site, obtaining adequate financing to complete necessary construction or remodeling, and obtaining necessary ordinance and/or building code permits, licensing, and approvals.

6. What is the estimated initial investment and what are the ongoing fees?
The total investment ranges from $985K - $1.525MM (includes franchise fee) depending upon a location and unit square footage. We assess a 5% royalty fee and a 0.25% marketing fund fee based on gross sales.

7. What are my potential earnings as a Fuddruckers franchise owner?

Your earning capability depends on several factors including past experience, location, business acumen and market conditions. As in any business there is no guarantee to your success. Existing Fuddruckers franchisees are an excellent source of information to answer questions regarding operations, marketing and finances.

Other Questions/Notes:

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ABOUT OUR OWNER

Before purchasing Magic Brands, LLC (Fuddruckers, Inc.) in 1998, Michael Cannon spent 20 years building an enviable record of successes in the UKs hospitality industry. Today, his name is synonymous with exceptional returns in the field of chain management. Cannon began building his reputation for retailing innovation and creativity in 1975 when he bought a half-share in a Bristol pub. In 1976, he established Inn Leisure Limited, a privately held company operating a chain of pubs. Cannon took the company public in 1983, merged it with JA Devenish three years later, doubled the companys sales as CEO and then sold Devenish in 1993 for $349.3 million. A year later, Cannon led a management team in the formation and daily operation of The Magic Pub Company, which acquired more than 250 under-performing pubs and hotels. By January of 1996, The Magic Pub Company had become one the leading hospitality managers in the UK. Cannon sold The Magic Pub at a price of $321.9 million. Cannons success comes from years of working in every aspect of his businesses. He feels that proper staffing, at all levels, is critical and listening and taking into account the thoughts and feelings of each associate is essential to the overall atmosphere and success of a business.