Café Zupas Franchising LLC
Date of Incorporation: 2006
Franchising Since: 2006
Headquarters: Utah
Business and Description: Café Zupas Franchising LLC is offering a franchise that authorises the use of the “CaféZupas” System. This refers to the entire concept of the Café Zupas restaurant including the sale of gourmet sandwiches, soups, salads, desserts, accessories, gifts and other products and services.
Franchise offer: Café Zupas Franchising LLC is offering the opportunity to own and operate a Café Zupas restaurant. They are also offering a multi-unit development agreement.
Financial Assistance: Café Zupas Franchising LLC does not offer any direct or indirect financing. They do not guarantee any notes, leases or other obligations.
Training and Assistance: A training course is offered for the franchisee and 1 manager. The length of the training depends on prior experience but should last at least 2 weeks. During this time there will be instruction in restaurant operations and management. ‘Hands on’ training and experience in all phases of restaurant operation, both in the classroom and at an existing Café Zupas restaurant, will be provided.
Territory: The franchisee can operate their business from a single location but will not be given a territory. The franchisee’s space will vary depending on their needs, but Café Zupas Franchising LLC estimate you will need 2500 to 4000 square feet. Neither the franchisee nor the developer can establish a website.
Renewal and Termination: The term of franchise is 5 years. The agreement can be renewed for between 10 – 25 years provided the franchisee is in good standing. The franchisee can not terminate the contract. If the franchisee breaches the franchise agreement, Café Zupas Franchising LLC can terminate the agreement. The term for the Multi-Unit Development Agreement is a negotiated period between 5 and 7 years.
Obligations and Restrictions: The franchisee must personally participate in the operation of the business, but need not manage the business full time. On-premises supervision is required by either the franchisee or a designated manager (who has completed the training). The Franchisee may only sell and serve products, goods, menu items, recipes and services specified and approved by Café Zupas Franchising LLC in writing.
Total Number of Units for 2006: 2
Total Number of Units Closed for 2006: 0
Total Number of Units Opened for 2006: 2
Financial Statements: The Company is in development stage and has not commenced operations, recorded any sales of franchises or acquired any restaurants or restaurant properties
Investment Table:
Estimated Initial Investment for Single Unit Franchise:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise fee | $35,000 | $35,000 |
| Travel & Living Expenses While Training | $3,000 | $5,000 |
| Real Estate & Improvements | $130,000 | $235,000 |
| Equipment | $166,000 | $175,000 |
| Signs | $10,000 | $16,000 |
| Misc. Opening Costs | $3,000 | $5,000 |
| Opening Inventory | $10,000 | $15,000 |
| Advertising- 3 Months | $2,000 | $15,000 |
| Additional Funds -3 months | $25,000 | $35,000 |
| TOTAL (excluding the lease or purchase of real property) | $384,000 | $536,000 |
Ongoing Cost for Single Unit Franchise:
| Name of Fee | Amount |
|---|---|
| Royalties | 5% of gross weekly sales |
| Advertising Fee | 2% plus 1% spent locally |
| Opening Assistance | $2,500 |
| Additional On-site Assistance | $500 per day plus travel / lodging expenses |
| Other Assistance | No additional fee |
| Transfer | $5,000 |
| Late Charges | $100.00 per day up to $700 plus 18% interest |
| Renewal Fee | $2500 |
| Fees on Default and Indemnity | Attorney's fees, costs, interest and audit costs. |
| Audit Charge | Cost of audit |
| Testing Fee | Reasonable expense at cost but not less then $500 |
| Transfer training Fee | $5,000 |
| Non-compliance fees and charges | Various charges ranging from $50-$100 per day for non-compliance. |
| Point of Sale Software | $750 Setup Fee plus $265 Per Month |
The above information has been taken from the UFOC/FDD of Café Zupas Franchising LLC.
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