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Frequent Asked Questions
Question: Is previous food or restaurant experience necessary to obtain a Freshii franchise?
Answer: Restaurant experience is always helpful but, if you have experience running another type of business including working with employees and customers, managing cash and generating financial statements, we have a complete training program and manuals as well as field operational staff that can help you learn this business as well as provide ongoing support for you.
Question: Is there a cost for the training program or ongoing support?
Answer: The cost of Freshii University is included in your franchise fee, including training and support at your location for the Grand Opening. Travel, lodging, and food, are the responsibility of the individual franchisee. On going field support after opening can be provided at a per diem cost.
Question: How much does a franchise cost?
Answer: The cost of a franchise is $30,000, payable upon signing of the Franchise Agreement.
Question: Am I protected from other Freshii stores opening near my store?
Answer: At the time a location is determined for your first store a “Protected Area” will be established. The size of the area will depend on the density of population, traffic, competition and other factors.
Question: Can I reserve territories for future development after my first store?
Answer: Yes. At the time of signing of the Franchise Agreement you can also sign a Development Agreement defining the number of stores and area(s) you plan to open those stores. Each additional store reserved under a Development Agreement requires a franchise fee of $30,000, including a payment of $15,000 per store upon signing the Development Agreement. The remaining $15,000 is due upon signing a Franchise Agreement for each store.
Question: How long do I have to develop the store under the Franchise Agreement?
Answer: You have 180 days to open a store.
Question: How is an area defined for a Development Agreement?
Answer: Based on the general location you wish to operate in we will define an area(s) large enough to hold the number of stores you have purchased under the Development Agreement. You will also have a right of first refusal to any location in the Development area that becomes available in addition to the store opening schedule in the Development Agreement.
Question: How long is the Franchise Agreement, and is it renewable?
Answer: The Franchise Agreement is for 10 years and renewable for 10 additional years upon payment of 20% of the Franchise Fee being charged at the time of renewal.
Question: How much is the royalty payment and how is it collected?
Answer: The royalty is 6% of gross sales (net sales + comps and discounts), payable weekly. You must use the POS system we designate, and have internet access at your store location. Your POS system will be polled to keep track of sales.
Question: What are the advertising fees?
Answer: The advertising fee can be up to 2% of net sales with a portion of that fee reallocated to a regional Co–op. You are also required to spend 1% of net sales on local advertising. This may also be reallocated to a regional Co–op.
Question: What is the advertising fee used for?
Answer: We use the fees for creation, production and placement of commercial media advertising, public relations, market research, brand recognition, and in-house staff coordinating these efforts. We do not use the funds to solicit franchisees.
Question: I have little or no experience in commercial lease transactions. Will Freshii assist me?
Answer: Yes. We have on staff personnel who are familiar with commercial leasing, including tenant work letters, and letters of intent. While we will review and help prepare these documents, we do not serve as legal counsel or in any other professional capacity.
Question: How much will it cost to open a store?
Answer: The cost of opening a Freshii varies with location and size. Please click here to see initial investments.
Question: What does the franchise system include?
Answer: Owning and operating an assigned Freshii franchise, use of brand name, trademarks, recipes, operational systems and methods, and décor. Additionally, you will receive support in these specific areas:
- Facility planning on site location and architectural design
- Specifications for fixtures, equipment, and leasehold improvements
- Assistance in site selection and lease negotiation
- Corporate training for Owner/Operator and Director of Operations/General Managers
- Kitchen/Back of the House Workflow design
- Ongoing support from members of the Training and Operations Team
- Ongoing updates for increasing profitability
- Products with high industry demand
- Efficiency in all systems
- Favorable contracts with suppliers of goods and services
- Operating manuals, policies, procedures, and business management systems
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