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Candy Express Franchise Cost & Fees

Date Incorporation: 1989

Franchising Since:  1989

Headquarters: Maryland

Description: Candy Express franchise operates a retail store that sells pre-packaged and bulk candy, confections, gifts, and related items. Candy Express is known for clean, well organized, well stocked and friendly stores offering a wide variety of product offerings and providing a comfortable shopping atmosphere for its steady, repeating customers of all ages.

Franchise Offer: The franchise offered is for the operation of a Candy Express retail store. A Candy Express franchise can become a Coco Moka Cafe franchise by adding gourmet coffee, soups, salads, sandwiches, ice cream, desserts and pastries to the pre-packaged and bulk candy, confections, gifts and related items sold as a Candy Express retail store.

Financial Assistance: The franchisor does not offer direct or indirect financing. They do not guarantee any note, lease, or other obligation.

Training and Assistance: The franchisor provides an initial training program for the franchisee and one additional employee. The training program consists of about 3 days of classroom training at the corporate offices in Burtonsville, Maryland and about 3 to 5 days of in-store training and supervision. There is approximately 23-26 hours of classroom training and 16-20 hours of ‘on-the-job’ training.

Territory: The franchisee will not receive an exclusive territory. The franchisee may face competition from other franchisees, from outlets owned by the franchisor, or from other channels of distribution or competitive brands controlled by the franchisor.

Term of Agreement and Renewal: The length of the franchise term is the same as lease of premises. The franchisee has the option to renew for one additional term that will end on the same date as any renewal lease term for the Franchised Business.

Obligations and Restrictions: The franchisee or the designated manager must devote his or her full time, energy, and best efforts to the management and operation of the Franchised Business. Although the franchisor does not place direct limitations on persons the franchisee may hire, they will provide guidelines for hiring management personnel. The person who will most directly be responsible for running the Franchised Business must complete the initial training program.

Total Number of Units: 15 outlets at the end of 2007

Total Number of franchises Units: 15 franchised outlets at the end of 2007


Investment Tables:
 Initial Investment:

Expenditures Low High
Franchise Fee $ 30,000 $ 30,000
Store Construction  $20,000

$125,000

Store Fixtures & Plexiglas Bins $ 30,000 $90,000
Cash Registers $2,600  $5,900
Chocolate Cases $8,256 $11,580
Light Fixtures $5,000 $8,500
Storefront Sign $ 3,200 $7,500
Opening Inventory $25,000 $35,000
Store Opening Supplies $ 5,000 $7,500
Freight $ 3,000 $5,000
Pre-opening Payroll Expense $ 2,000 $ 2,000
Promotional Expense $ 500 $ 2,000
Legal Fees - lease negotiations $0 $3,000
Real Estate Fee - site selection $0 $15,000
Architecture & Design Fees $5,000 $ 15,600
 Food, Lodging and Travel Expenses (for trainers to travel to location)  $1,000  $1,500
 Insurance  $1,500  $5,000
Additional Funds (3-12 months) $1,500 $3,500
TOTAL $139,056 $378,580

 Ongoing fees:

 

Name of Fee Amount
Royalty 6% of Gross Sales
Promotional Fund 1 % of Gross Sales
Renewal Fee $2,500
Transfer Fee ½ the then-current initial franchise fee
Late Fee $50 per occurrence
 Interest 1.5% per month
Audit Amount underpaid, plus interest, and costs of conducting the inspection if the underpayment equals or exceeds 3%
Insurance Costs Actual cost plus the then- current administrative fee
Inspection and Product Testing  Actual cost of inspection of a supplier's facility and actual cost of any test requested from an independent facility
Opening Inventory Over-Ride Fee 10% of the total cost of opening inventory
Real Estate Broker Fee Varies
Management Expenses Compensation, travel and living expenses of manager
Indemnification Varies
Costs/Attorney's Fees Varies

 

Date of FDD: 01/09/2008

The above information has been taken from the UFOC/FDD of Candy Express

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