If you are looking towards opening a Freshii Franchise in Canada, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location.

Freshii Development, LLC. was founded in 2004 and they began franchising in 2008, about 13 years ago. The company’s country of origin is Canada but they have their corporate head office at Chicago, Illinois, USA. As of the 2019 Franchise Disclosure Document, there are 125 franchised Freshii locations in the USA. Based on 2019 FDD data, Freshii has franchise locations in 28 states. The largest region is the South with 45 franchise locations.

Freshii Development, LLC. has more than 470 franchise units (locations) successfully operating worldwide. The restaurant chain offers for sale salads and wraps, bowls, burritos, and frozen yogurt. Freshii restaurant franchise provides promising opportunities for growth and development. The company offers health and wellness food which will always be in demand.

Owning a Freshii healthy food restaurant franchise also means running a proven business with a famous brand name. If you are thinking about how to start the Freshii franchise, then browse the requirements for a new franchisee. Freshii Development, LLC. has a franchise fee of up to $30,000, with a total initial investment range of $179,000 to $483,000. Here are areas where you are expected to spend money and the costs associated with it;

Financial Investment Required to Open Freshii Franchise

  1. Letter of Intent Fee: $5,000

After you submit an application to Freshii for a single unit or multi-unit franchise opportunity, and following the required 14-day waiting period after receipt of the Franchise Disclosure Document, you will be required to sign a letter of intent (the “LOI”).

Please note that you must pay Freshii a non-refundable $5,000 fee when you sign the LOI to cover the cost Freshii incurs in connection with reviewing your application and the due diligence it performs. This fee is fully earned when paid and is not refundable.

  1. Development Fee

100 percent of the initial franchise fee for the first Restaurant to be developed ($30,000), plus a deposit of 50 percent of the initial franchise fee for each additional Restaurant to be developed. Please note that if you sign the Area Development Agreement, you must pay Freshii a “Development Fee” when you sign that Agreement. You must sign the Franchise Agreement for the first Restaurant at the same time you sign the Area Development Agreement.

The Development Fee is calculated based on the total number of Restaurants you commit to develop under the Area Development Agreement. You must commit to develop a minimum of two restaurants to enter into an Area Development Agreement.

The Development Fee will be equal to 100 percent of the initial franchise fee for the first Restaurant to be developed, plus a deposit of 50 percent of the initial franchise fee for each additional Restaurant to be developed. Freshii will charge an initial franchise fee of $30,000 for each Restaurant.

It is important to state that Freshii expects Development Fees to range from $60,000 to $250,000. The Development Fee is non-refundable, but Freshii will apply $15,000 of the Development Fee towards the initial franchise fee owed for the second and each additional Franchise Agreement that the Area Development Agreement covers.

  1. Initial Franchise Fee: $30,000

You must pay Freshii a $30,000 initial franchise fee in a lump sum when you sign the Franchise Agreement. If you or your affiliate signed an Area Development Agreement covering this franchise, Freshii will apply $15,000 of the Development Fee towards the initial franchise fee. Please note that the initial franchise fee is not refundable.

  1. Marketing Deposit: $10,000

When you execute the lease for the Freshii Restaurant, you must pay Freshii a marketing deposit in the amount of $10,000 (the “Marketing Deposit”) and execute its Marketing Deposit Agreement. Freshii will apply the Marketing Deposit to the providers of products and services for the approved grand opening marketing program for your Freshii Restaurant.

Please note that if you pay Freshii’s approved vendors for the grand opening advertising that Freshii requires for your franchise restaurant and provide it with copies of the paid invoices, it will refund to you the amount you paid to those approved vendors, up to $10,000.

There are no other purchases from or payments to Freshii or any affiliate of Freshii that you must make before your Restaurant opens.

  1. Royalty

6 percent of Gross Sales and the due date for this is weekly on the day Freshii specifies (the “Payment Day”). Based on Gross Sales during previous week. Please note that this Royalty applies for all franchises under the Area Development Agreement.

  1. Marketing Fund Contributions:

The amount Freshii specifies, up to 3 percent of Gross Sales, subject to Marketing Spending Requirement. The due date for this fee is  due monthly on Payment Day. Currently, Freshii has specified 1.5 percent of Gross Sales as the Marketing Fund contribution.

  1. Successor Franchise Fee: Freshii’s then-current standard initial franchise fee and the due date for this fee is when you acquire successor franchise.
  2. Transfer Fee: $10,000 and the due date for this fee is upon transfer.

Due only upon transfer of Agreement or controlling ownership interest in you.

  1. Ongoing Training and Special Assistance: Currently $500 per day, plus out-of-pocket costs and expenses, but could increase if Freshii’s costs increase and the due date for this fee is as incurred.

Please note that Freshii may charge you for supplemental training courses, programs, and conventions it provides and for additional or special assistance or training you need or request.

  1. Replacement Copy of Operations Manual: Currently $2,000, but could increase if Freshii’s costs increase and the due date for this fee is as incurred. Please note that this fee is due only if you need a replacement copy.
  2. New Product/Supplier Testing: Freshii’s good faith estimate of evaluation costs and the due date for this fee is when billed.

Please note that this fee covers costs of testing new products or inspecting new suppliers you propose.

  1. Music Provider – Playlist Generation: Set-up fee of $99 and $42 monthly fee per location and the due date for this fee is monthly.

Please note that this fee is payable to approved supplier.

  1. Insurance: Premiums and Freshii’s costs and expenses and the due date for this fee is when billed.

Please note that this fee is due only if you fail to maintain insurance and Freshii (at its option) obtains insurance on your behalf.

  1. Relocation: Reasonable costs Freshii incurs and the due date for this fee is as incurred.

Please note that this fee is due only if you ask to relocate the Restaurant.

  1. Audit: Cost of inspection or audit and the due date for this fee is as incurred.

Please note that this fee is due only if you fail to report or understate by 2 percent or more.

  1. Interest: Lesser of 1.5 percent per month or highest commercial contract interest rate law allows and the due date for this fee is 15 days after billing.

Please note that this fee is only due on all overdue amounts more than 7 days late.

  1. Management Fee: 10 percent of Gross Sales while Freshii manages Restaurant, plus direct out-of-pocket costs and expenses and the due date for this fee is as incurred.

Please note that this fee is due only if Freshii or its designee manages Restaurant after your (or your managing owner’s) death or disability, after your default or abandonment, or after termination.

  1. Costs and Attorneys’ Fees: This fee will vary under circumstances but the Due Date for this fee is as incurred.

Please note that this fee is due only if Freshii prevails in legal proceeding.

  1. Indemnification: This fee will vary under circumstances but the due date for this fee is as incurred.

Please note that you must reimburse Freshii if it is held liable for claims from your Restaurant’s operation or your business or breach of agreement.

  1. ServSafe / TIPS (or similar) Certification: $150 per person or then-current market rate and the due date for this fee is as needed.

Please note that each of your managers and other employees Freshii designates must be ServSafe / TIPS or similarly certified. Payable to an approved supplier.

  1. Liquidated Damages: This fee will vary under the circumstances but the due date for this fee is 15 days after termination.
  2. Veteran Incentives: This is open for negotiation with the company
  3. Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees give timely notice, have complied with obligations during the Franchise Agreement’s term, and (at the franchisee’s option) either remodel/upgrade or relocate the restaurant, they may acquire a successor franchise for 10-year term.
  4. Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or obligation.

In Summary,

  • Initial Investment: $179,000 to $483,000
  • Net-worth Requirement: $300,000
  • Liquid Cash Requirement: $150,000
  • Ongoing Royalty Fee: 6 percent of Gross Sales
  • Ad Royalty Fee: 1.5 percent

If you are satisfied with all the cost implications, then here are easy steps to follow if you want to open a Freshii franchise;

Steps to Opening a Freshii Franchise

1. Make Sure You Have Adequate Capitalization.

In order to open a Freshii healthy food restaurant franchise, you must have a net worth of $300,000 and liquid cash of $150,000.

2. Appreciate the Investment Required for a Restaurant Franchise.

You will need to consider real estate costs, the cost of equipment and signs, licenses and permits, uniforms, insurance, etc.

3. Evaluate your prior experience and strengths

You should thoroughly evaluate your prior business experience before applying to become a Freshii restaurant franchise owner.

4. Assess Market Availability

You will want to look at the market availability for Freshii franchises and see if there are available markets in your location of interest before proceeding with the franchise application.

5. Submit Your Application

Your application will be reviewed by the Freshii franchise team. You will be emailed a confirmation receipt upon reception of your online application, where they will additionally provide the contact details of the franchise owner.

6. Receive Approval & Opening your Freshii Franchise

You will receive franchise approval once your financial and background checks are completed. Approval will only be given to candidates who meet all the requirements of franchise owners.

Ajaero Tony Martins