How To's
How Much Does a Freshii Franchise Cost
Do you want to own a Freshii franchise but hesitant to push through? Don’t worry. We’re going to break down what you need to invest plus the other fees to consider. Here’s a realistic overview of what to inspect.
Freshii Franchise: Overview
Freshii was founded in 2004 in Canada. In 2008, it started franchising and managed to have over 470 units over the years. Back then, Freshi’s popularity soared, and it accumulated hundreds of franchises. If you’re interested in a Freshii franchise, you’ll be able to operate an establishment offering various healthy meals such as:
- Salad
- Rice bowl
- Wraps
- Oatmeal
- Fresh fruits
- Frozen Yogurt
- Portable snacks and beverages
Training Program
The franchisor, Freshii Development, LLC, use a variety of training tools and format that includes the following:
- Manuals
- Webinars
- In-person teaching
- Online Courses
For the first time, Freshii franchisees and designated personnel must participate in the managers’ training program. The designated personnel could be the franchisee, a manager, or an operating partner. Freshii also has a virtual manager training program, including a self-study program available online at Freshii University.
What You Need To Know
As a franchisee, here are the following details you should know about:
- The initial length for a Freshii Franchise is ten years.
- According to the franchise agreement, a franchisee will be designated territory with a radius of at least five city blocks.
- A franchisee needs to assign a full-time general manager. The franchisor requires the general manager to be present at least 40 hours and five days per week.
- Unfortunately, Freshii does not offer direct or indirect financial assistance programs.
Did You Know?
- Freshii is inspired by mom-and-pop fresh food delis.
- Every 90 days, Freshii introduces a new item incorporated from the latest food and health trends.
- Last Superbowl 2020, Freshii donated a soup or bowl to someone in need every time a user tweeted with a #SoupOrBowl.
- Freshii’s “Grocery Bundle” uses 100% biodegradable bags made out of corn resin.
Your Investments
Let’s move on to the total cost breakdown for a Freshii franchise. Take note that the information below is compiled from the 2020 FDD of Freshii.
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Travel & Living Expenses While Training | $10,000 | $25,000 |
| Marketing Deposit for Grand Opening | $10,000 | $10,000 |
| Real Estate/3 Months’ Rent | $10,000 | $30,000 |
| Security Deposit | $5,000 | $15,000 |
| Construction, Remodeling, Leasehold Improvements And Decorating Costs | $50,000 | $250,000 |
| Furniture, Fixtures, Other Fixed Assets and Equipment | $30,000 | $100,000 |
| Signage (Interior And Exterior) | $3,000 | $15,000 |
| Opening Inventory and Supplies | $5,000 | $10,000 |
| Insurance | $5,000 | $15,000 |
| Licenses and Permits | $1,000 | $3,000 |
| Miscellaneous Opening Costs | $5,000 | $15,000 |
| Additional Funds—3 Months | $10,000 | $60,000 |
| ESTIMATED TOTAL | $179,000 | $583,000 |
Other Costs
If you’re determined to pursue a Freshii franchise, you have to be aware of the other fees that you’ll encounter.
| Type of Fee | Amount |
|---|---|
| Royalty | 6% of gross sales. |
| Marketing Fund Contributions | Amount the franchisor specifies, up to 3% of gross sales. 1.5% of gross sales. |
| Local Marketing | 1.5% of gross sales. |
| Successor Franchise Fee | The then current standard initial franchise fee. |
| Transfer | $10,000 |
| Ongoing Training and Special Assistance | $500 per day plus out-of-pocket costs and expenses, but could increase if the franchisor’s costs increase. |
| Replacement Copy of Confidential Operations Manual | $2,000, but could increase if the franchisor’s costs increase. |
| New Product/Supplier Testing | The franchisor’s good faith estimate of evaluation costs. |
| Music Provider – Stingray | Set-up fee of $18.71 and a $30 monthly fee per location. |
| Insurance | Premiums and the franchisor’s costs and expenses. |
| Relocation | Reasonable costs the franchisor incurs. |
| Audit | Cost of inspection or audit. |
| Interest | 1.5% per month or highest commercial contract interest rate law allows, whichever is less. |
| Management Fee | 10% of gross sales while the franchisor manages the restaurant plus direct out-of-pocket costs and expenses. |
| Costs and Attorneys’ Fees | Varies |
| Indemnification | Varies |
| Servsafe / TIPS (or similar) Certification | $150 per person or the then-current market rate. |
| Liquidated Damages | Varies under circumstances. |
| Employee Uniform Provider | Approximately $299 for standard uniform requirements, Additional fees applicable for alternative or additional uniform items. |
| Printing Service (Designated Provider: Request Office) | One-time fee of $1,906, between $170 and $335 quarterly and an annual service fee of $754. |
| Online Ordering App Fee | Based on the online orders franchisees receive from the proprietary online ordering system. Sales up to $1,000: 2.5% of gross sales. Sales over $1,001: 1% of gross sales. |
| Digital Menu Board and Mobile Application – UnoApp | $99 monthly. |
| Internet, Phone, Fax and Security Software and Support – Pinnacle IP Solutions | $210.95 monthly. |
| Restaurant Inspection | $148 quarterly, if the approved supplier determines that the restaurant fails the inspection. |
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