Zizzo's Coffee
Date of Incorporation: 2006
Franchising Since: 2006
Headquarters: California
Business and Description: Zizzo's Coffee Enterprise Llc businesses are business-to-consumer franchises with an easy operating system that provides gourmet espresso beverages and delectable pastries in an upscale, sophisticated cafe setting.
Franchise Offer: Zizzo's Coffee businesses provide "Good Friends Great Coffee" to the general public. The franchisee’s Coffeehouse will provide swiftly-prepared specialty coffee drinks, a large selection of hot teas, and other bottled drinks to customers in a sophisticated atmosphere. The franchisee will also provide a wide selection of pastries and baked goods, including the traditional coffee accompaniment, biscotti, and many other high-quality foods. Zizzo's Coffee Enterprise currently offer two different types of franchises: (1) Coffeehouse franchises, (2) Regional Developer franchises. The initial franchise fee for a Single Unit Franchise is $35,000.
Financial Assistance: Zizzo's Coffee Enterprise does not offer any financial assistance nor do they guarantee any note, lease or obligation.
Training and Assistance: Zizzo's Coffee Enterprise will provide to the franchisee and up to 2 other members of the management team an initial training program which will conclude at least 30 days before the opening of the franchise. The training program includes classroom instruction and Coffeehouse operation training at the headquarters in Capitola, California, and on-the-job Coffeehouse operation training at either a training facility or a Coffeehouse that the franchisor will designate. There will be no tuition charge for these training programs for the persons required to attend.
Territory: Zizzo's Coffee Enterprise will designate whether the franchisees’ site is a traditional or non – traditional location. Only a franchise in a traditional site will receive a projected area which will consist of a circular area defined by the radius of 14 mile from the front door of the Zizzo's Coffee store. The franchisor will not establish a traditional, full-service Zizzo's Coffee Coffeehouse within the Protected Territory.
Renewal and Termination: The term of the franchise agreement is 10 years with an option to renew for an additional 10 years if certain requirements are meet. The renewal fee is ¼ of the then current franchise fee. Neither the franchisee nor the franchisor can terminate without cause.
Obligations and Restrictions: Unless the franchisor approves the employment of an on-site general manager to operate your Zizzo's Coffee franchise, the franchisee must actively participate in the actual operation of the franchise, and devote as much time as may be reasonably necessary for its efficient operation. The franchisee must offer and sell only those services and products that have approved for the franchise. The franchisee must also use the computer hardware and software system that Zizzo's Coffee Enterprise periodically designates to operate the Zizzo's Coffee franchise.
Total Number of Company Owned Units for 2007: 1
Total Number of Company Owned Units Opened for 2007: 0
Total Number of Company Owned Units Closed for 2007: 0
Total Number of Franchised Units for 2007: 0
Total Number of Franchised Units Opened for 2007: 0
Total Number of Franchised Units Closed for 2007: 0
Investment Table:
Estimated Initial Investment for a Single Unit Franchise:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Security Deposits | $2,000 | $6,000 |
| 3-Months' Lease/Rent | $3750 | $18,000 |
| Store in a Box | $180,000 | $225,000 |
| Business Licenses and Permits | $100 | $500 |
| Professional Fees (including project management) | $2,750 | $10,500 |
| Initial Inventory | $10,000 | $15,000 |
| Insurance | $700 | $3,000 |
| Initial Training Expenses | $1,000 | $5,000 |
| Telecommunications | $200 | $500 |
| Grand Opening Advertising Program | $2,500 | $4,000 |
| Additional Funds-3 month | $15,000 | $45,000 |
| Total Estimated Initial Investment | $253,000 | $367, 500 |
Ongoing Costs for Single Unit Franchise:
| Name of Fee | Amount |
|---|---|
| Royalty | 6% of gross revenues |
| Advertising Fee | Up to 2% of gross revenues |
| Additional Training or Assistance Fee | $150 per attendee per day |
| Interest | Greater of 15% per annum, or the highest commercial contract interest rate permitted by law |
| Audit Expenses | Cost of Audit and inspection (up to $12,000) plus reasonable accounting and legal expenses |
| Late reporting Fee | $100 per week |
| Supplier and Product evaluation Fee | Cost of inspection and test of product sample |
| Grand Opening advertising | $2,500 - $4,000 |
| Insurance | Amount of unpaid premiums and related costs |
| Renewal Fee | 25% of then current Initial Franchise Fee |
| Transfer Fee | 25% of then current Initial Franchise Fee |
| Legal Costs and Attorney’s Fees | All legal and attorney’s fees incurred by the franchisor |
| Indemnification | All amounts incurred by the franchisor or otherwise required to be paid. |
The above information has been taken from the UFOC/FDD of Zizzo's Coffee Enterprise Llc.
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