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The Breakdown of Saladworks Franchise Cost
If you want to start a health-conscious business venture, then this is the perfect article for you. Of course, a fresh, healthy meal always looks delicious to eat. So if you believe that healthy living is “healthy eating,” let’s dive into the breakdown of Saladworks franchise cost.
Saladworks: Overview
Saladworks started in 1986 at Conshohocken, Pennsylvania. The establishment began franchising in 1992 and successfully opened around 90 units over the years. Saladworks, LLC, the franchisor, allows the franchises for development, establishment, and operation of Saladworks restaurant, offering the following unique recipes:
- Salad
- Sandwiches
- Wraps
- Panini
- Soups
- Bread
- Beverages
The recipes mentioned above should be prepared and served following the specified procedures and recipes of the establishment.
Training Program
Saladwork, LLC will train franchisees and up to three of their management staff. Overall, the required length of training lasts up to four weeks. For two weeks, the franchisor will conduct hands-on and in-class training in Conshohocken, Pennsylvania. Then, the other two weeks will be conducted in the franchisee’s restaurant.
Depending on the availability, franchisors may designate alternative training restaurants that are closer than the franchisor’s establishment. Also, there’s a sanitation certification course by the National Restaurant Association that will be required to be taken online as the franchisor proctors the exam.
One to two days before the restaurant’s soft opening, the franchisor will assist franchisees and require a mock opening. Furthermore, the franchisor may offer additional refresher courses, further training, or seminars. In addition, for future requirements, designated management personnel or the franchisee themselves are required to attend the courses.
Territory Agreement
Firstly, the franchisor must approve the specific location of your establishment. Once accepted, it will be identified on the datasheet of the Franchise Agreement. A potential franchisee should be aware of the following:
- Within 30 days of approval, the franchisees must execute a lease for the accepted location.
- The franchisor will then provide a protected territory for the approved location.
- The franchisee will not be provided an exclusive territory as the franchisor or other competition may operate within the vicinity of the agreed location.
- The franchisor will then decide the territory’s scope and size.
What’s Expected of the Franchisee?
As a franchisee, you’ll be expected of the following:
- Devote full-time attention with best efforts for the operation and management of the restaurant.
- Franchisees may assign day-to-day supervision to manage personnel.
- The manager must complete the initial training required by the franchisor before assuming any responsibility.
- At all times, the restaurant should be managed by the franchisee or any managing personnel who received and completed training as per the franchisor’s requirements.
- During the initial term of the franchise agreement, the franchisor has sole discretion to conduct an inspection and obtain reports.
- Franchisees may only sell foods, beverages, and products allowed by franchisors.
Franchise Agreement and Terms
The initial length of the Saladworks franchise will last up to ten years. Franchisees have the right to renew the agreement for another ten years if certain conditions are met.
Financial Support
Unfortunately, the franchisor does not offer any monetary support for potential franchisees—direct or indirect. However, the establishment is listed under the Small Business Administration’s Franchise Directory.
Did You Know?
Before diving into the actual cost breakdown for Saladworks franchise cost, let’s learn some interesting facts about the establishment.
- Saladworks has been making salads before the healthy and tasty meals were considered “cool.”
- All brownies, cookies, and rolls are prepared fresh every morning.
- Overall, the signature pre-made salads have less than 500 calories.
- Saladworks has a menu that offers over 50 salad ingredients!
Saladworks Franchise Cost Breakdown
After learning the interesting facts and details about Saladworks, let’s now jump into the complete cost breakdowns for investments.
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $35,000 |
| Architectural Plan Review | $0 | $1,000 |
| Architect Fees | $5,200 | $15,792 |
| Permits & License Fees | $291 | $3,930 |
| Leasehold Improvements | $48,075 | $250,000 |
| Equipment | $38,000 | $89,345 |
| Furniture | $9,356 | $13,450 |
| Millwork | $19,838 | $24,659 |
| Smallwares | $5,864 | $6,347 |
| Exterior Signage | $4,871 | $10,125 |
| Menu Board, Graphics and Interior Signage | $1,634 | $12,124 |
| Technology Systems | $1,050 | $1,863 |
| Grand Opening Marketing | $15,000 | $15,000 |
| Uniforms, Menu Materials, Office Supplies | $3,757 | $3,757 |
| Travel & Living Expenses While Training | $0 | $2,500 |
| Opening Inventory | $5,442 | $5,442 |
| Insurance | $2,229 | $3,750 |
| Additional Funds – 3 months | $20,000 | $40,000 |
| ESTIMATED TOTAL | $210,607 | $534,084 |
Other Fees to Consider
| Type of Fee | Amount |
|---|---|
| Royalty Fee | 6% of total net sales. |
| Brand Development Advertising Fee | 3% of net sales. |
| Technology Bundle Fee | $475 – $910 |
| Unauthorized Advertising Fee | $1,000 per occurrence. |
| Sublease Fee or Guaranty Fee | 0.5% of net sales. |
| Maintenance/ Repair/ Refurbishing | Actual amount incurred. |
| Grand Re-Opening Marketing Fee | $2,500 |
| Transfer Fee | 50% of the then-current initial franchise fee if transferring to an existing franchisee; or 75% of the then-current initial franchise fee if transferring to a new owner. The fee to transfer ownership among existing partners only is $2,000. |
| Commission | 5% to 10% of gross purchase price. |
| Interest | Lesser of 18% per year, or highest rate allowed by law, plus $100. In California, the highest lawful rate of interest is 10% per annum. |
| Insufficient Funds Fee | Lesser of 18% per year, or highest rate allowed by law, plus $100. |
| Costs & Attorneys’ Fees | Actual amount incurred. |
| Audit Expenses | Actual amount incurred; cost ranges from $250 to $7,500. |
| Insurance | Cost of insurance. However, if the franchisees fail to maintain insurance as required, there is an 18% administrative cost charge if the franchisor exercises their right to procure the franchisee’s insurance. |
| Renewal Fee | $17,500 |
| Service Fee | $600 per day. |
| Supplier Evaluation Fee | A minimum of $500. |
| Annual Convention | The franchisee’s travel and lodging expenses. |
| Failure to Attend Annual Convention | $1,000 |
| Training Cancellation Fee | Currently $400 per person. |
| Food Safety and Operations Excellence Report Fee | Actual amount incurred. |
| Additional Requested Store Opening Assistance & Additional Requested On-Site Assistance | $500 per person per day, plus expenses. |
| Additional Training | Travel and lodging expenses. |
| Training for Replacement Personnel | Travel and lodging expenses. |
| Survey Fee | Actual amount incurred. |
| Use of Proprietary Marks | Actual amount incurred. |
| Indemnification | Actual amount incurred. |
| Liquidated Damages | Up to 36 months of royalty fees and brand fund contribution. |
Final Note
Now that you’ve seen the total breakdown for a Saladworks franchise cost, do you think you’re ready? For other franchising options, explore FranchiseHow.