User:Box73/sandbox11

In 1967 a group of Big Boy restaurant franchisees started RoBee's House of Beef restaurants based in Ft. Wayne, Indiana.^[1] Marriott Corp., which had acquired Bob's Big Boy and the Big Boy trademark in 1967, acquired RoBee's in February 1968 with plans to expand nationwide, offering RoBee's franchises first to Big Boy franchisees covering their existing Big Boy territory.^[1] At the time there were 13 RoBee's restaurants in six states.^[1]

During the acquisition, in January 1968, the competing roast beef chain Arby's sued RoBee's for trademark infringement and (other similarities that it considered) unfair competition.^[2] Because "RoBee's" sounded too much like "Arby's" the settlement required a new brand name and Marriott wanted something recognizable.^[3] Big Boy founder Bob Wian, then sitting on Marriott's board of directors, was friends with Roy Rogers' agent and suggested the company approach Rogers about the use his name. Already interested in associating with a chain restaurant, Rogers was in similar discussions with another company when Marriott called.^[4] Nonetheless, he accepted Marriott's offer: Rogers would receive a licensing fee for use of his name and also be paid for personal appearances at the restaurants.^[5] The restaurants would be called "Roy Rogers Roast Beef Sandwich" restaurants, and despite Arby's complaints,^[2] it retained RoBee's building design^[6] and covered wagon logo design.^[7]

Marriott began converting its Junior Hot Shoppes fast-food outlets around Washington, D.C. before the existing RoBee's units were renamed. Several major Big Boy franchisees accepted Marriott's offer and became Roy Rogers regional franchisees,^{[note 1]} including Frisch's,^[10] Elias Brothers,^[11] Marc's,^[12] and Shoney's^[9] which together covered much of the Midwest and Southern US. Pittsburgh franchisee Eat'n Park rejected the offer and took public offense at paying fees to Rogers.^[13] In the Pittsburgh area and elsewhere, other regional franchisees were sought who would also subfranchise to smaller operators, and by January 1969 Marriott claimed regional franchises for every state but Alaska.^[14] Roy Rogers' restaurants also opened in Canada, franchised to that nation's Big Boy franchisee, JB's of Canada.^[15]

Marriott divided the United States into 33 franchise regions^[5] and required regional franchisees open a set number of restaurants in a four year period. Regional franchisees would pay Marriott a 2% royalty, and subfranchisees typically pay the regional franchisee 3%,^[16] who would keep the additional 1%.^[5] A restaurant required a $35,000 cash investment upfront,^{[17][18][note 2]} including $7,500 paid to Marriott. Additionally, the cost of the building and equipment, with seating for 42 persons, cost about $100,000 in 1968, excluding the cost of land.^[19] Marriott offered financing but charged an interest rate of 12% on land and 17% for the building.^[5] The prototype restaurant seated 40 to 45 persons with additional outdoor seating on an optional patio in front of the building,^[20] but actual restaurants varied, one franchisee's dining area accommodating 75 persons.^[16]

The first Roy Rogers restaurants opened in metropolitan Washington, DC in April 1968.^[21] They were conversions of existing Junior Hot Shoppes: xxx and yyy, selected because their proximity to Marriott's headquarters. The following month, Rogers began a multi-city tour of/including rebranded RoBee's restaurants.

The first Roy Rogers restaurant opened in April 1968 in the Bailey's Crossroads section of Falls Church, Virginia, on the corner of Leesburg Pike and Carlin Springs Road (5603 Leesburg Pike). Another opened at 5214 River Road, in Bethesda, Maryland. The area was selected because Marriott was headquartered in metropolitan Washington, D.C., the River Road unit located directly across the street. (Marriott executives and Marriott family members were frequent patrons of this store.) These first locations were conversions of Jr. Hot Shoppes, Marriott's existing fast food chain.^{[note 3]} In May 1968, RoBee's units began to open as Roy Rogers. Rogers made a four state tour of namesake restaurants in the Southern U.S., appearing at each location for an hour, shaking hands and handing out autographed photographs.^[21]

Rapid growth began in 1968 and Marriott made optimistic projections. In October 1968 there were reportedly 38 units open and 65 under construction, and by December, 56 open and 39 under construction. Marriott projected 700 or more Roy Rogers restaurants in four years. By June 1969 105 units were open with a new projection of 870 in four years. A February 1970 newspaper article reported that over 160 units were in operation and by May 172.

In 1970 Marriott suspended Roy Rogers franchising

after closing of existing restaurants causing large write-offs.. The following year, the Texas based regional franchise, Ram-Hart Systems, filed for Chapter 11 protection. This included cancelling leases found unprofitable, so many that it effected Marriott's earnings.

In 1970, the Texas based regional franchise Ram-Hart Systems became burdened with leases for so many unprofitable locations that it made the entire chain unprofitable. Marriott suspended Roy Rogers franchising and took large tax write-offs. Ram-Hart – which franchised in Texas, New Mexico, Arizona, Nevada, and parts of Northern California – sought bankruptcy protection in 1971.

In 1970, Marriott suspended Roy Rogers franchising due to financial losses from closings of failing locations.^[22] The following year, the Texas based regional franchise, Ram-Hart Systems, filed for Chapter 11 protection, asking to terminate leases found unprofitable, making the entire chain unprofitable.^[23][24]

In 1973 Elias Brothers, the Michigan franchisee opening their seventh restaurant said the Roy Rogers were losing money.^[25]

regional franchise for Texas, Arizona, Nevada, and Northern California sought bankruptcy protection for reorganization, including cancelling leases found unprofitable

^[26]

By 1969 Marriott found regional franchises for every state but Alaska.^[27]

Marriott made annual five year projections

Marriott's regional franchisee for Texas, Arizona, Nevada and Northern California Ram-Hart Systems In 1970 Marriott suspended franchising and took a writeoff on franchises that had closed. In 1970, Five Star Foods of Maryland became the Roy Rogers franchisee for most of Maryland and western New York State, planning to open 32 new restaurants by the end of 1974.

Working notes

• 870 by 1973/105th/seat75/ 7/24/69^[28]
• 700 in 4yr/82 completed/seat42/ 4/22/69 ^[29]

^{[note 4]}

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