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Maui Wowi Hawaiian Franchise Cost & Fees

Date of Incorporation: 1982

Franchising since: 1997

Headquarters: Greenwood Village, Colorado

 

Business Description: Maui Wowi Franchising, Inc. offers franchises for the operation of businesses that sell Maui Wowi fresh fruit smoothies, Hawaiian coffee and related espresso beverages, a variety of Hawaiian products, and other products developed by or for Maul Wowi Franchising, Inc. Maui Wowi products are sold from either fixed store fronts, non-traditional locations such as malls, airports or business complexes, or from portable units placed at events that occur on a periodic basis or are held in special or temporary venues.

 

Franchise Offer: The franchisor offers franchises for the operation of businesses selling approved products (collectively, Maui Wowi Products) from one of its various types of proprietary mobile, self-contained units, or from its proprietary non-traditional fixed-location kiosks or retail stores.

 

Financial Assistance: The franchisor does not offer direct or indirect financing nor does it guarantee a franchisee’s note, lease or obligation.

 

Training and Assistance: The franchisor will provide an initial training program to be conducted in the Denver, Colorado metropolitan area or at another site it designates. The Mainland Training Program usually lasts approximately five to eight days, in the franchisor’s discretion, depending on the type of Operating Unit the franchisee chooses to open as his or her first Operating Unit. The franchisee (or, if not an individual, then a managing member, partner or officer designated to participate personally in the Maui Wowi Business) will attend and successfully complete the Mainland Training Program and Launch Program prior to making any sales to the public through the Maui Wowi Business, unless the franchisor agrees otherwise in writing, in its sole discretion. On-the-job training, also known as “Hands on Training” (H.O.T.), is typically conducted at a variety of locations, including corporate headquarters, the Operating Units of Franchisees, and at the facilities of suppliers. Additional training or assistance will be provided upon the franchisee’s reasonable request. The franchisee (or, if not an individual, then a managing member, partner or officer designated to participate personally in the Maui Wowi Business) will attend, at his or her expense, any international conferences held by the franchisor to discuss sales techniques, operational standards and advertising that designated as mandatory.

 

Territory: If the franchisee is operating a Mobile Operating Unit at Events, the franchisee may operate at any Event except for a Protected Event of another franchisee or an Event. If the franchisee is operating a Fixed Operating Unit, or if the franchisee is operating a Mobile Operating Unit at a Permanent Site, the franchisee may operate at any Permanent Site, which has been approved in writing by the franchisor. The franchisor does not offer Territories, and reserves the right to approve another Operating Unit in a location in close proximity to the franchisee’s Operating Unit. Other than the specific approved Permanent Site or Protected Event, the franchisee will not receive an exclusive territory. The franchisee may face competition from other franchisees, from other outlets that owned by Maui Wowi, or from other channels of distribution or competitive brands that controlled by Maui Wowi. The franchisee does not have any exclusive right to any particular market or customers. However, the franchisor will consider the proximity when evaluating the Permanent Site of another franchisee submitted for approval.

 

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If requirements are met, a renewal term of 10 years is available.

 

Obligations and Restrictions: It’s recommended that the franchisee (or, if not an individual, then a managing member, partner or officer designated to participate personally in the Maui Wowi Business) is the primary operator of the Maui Wowi Business at all times and devote substantial full time and best efforts on a daily basis, in person, to the supervision and conduct of the Maui Wowi Business. Neither the franchisee nor any of the Managers may have an interest in or business relationship with any business competing with Maui Wowi Businesses or with Maui Wowi Products and Maui Wowi Services. The franchisee may offer and sell only those products, goods, and services specified and approved by the franchisor in writing, and will follow the franchisor’s policies, procedures, specifications, methods and techniques.

 

Estimated Number of Units: 450

 

Investment Tables:

Initial Investment

Mobile Operating Units

Name of Fee Low High
Initial Franchise Fee and Training Fee $39,500 $59,500
Travel and Living Expenses Incurred During the Mainland Training Program $650 $3,550
Concession License Fee Varies Varies
Mobile Operating Unit $26,000 $78,000
Coffee Equipment $800 $12,000
Optional Equipment $0 $15,000
Mobile Launch Fee $1,500 $1,500
Opening Inventory $1,500 $7,000
POS System, Credit Card Processing and Back Office Computer Equipment (Optional) $0 $10,000
Miscellaneous Opening Costs $1,750 $5,000
Additional Funds - 3 Months $0 $13,500
ESTIMATED TOTAL $71,700 $203,550

 

Mobile Operating Units (if Operated from a Permanent Site)

Name of Fee Low High
Initial Franchise Fee and Training Fee $39,500 $59,500
Travel and Living Expenses Incurred During the Mainland Training Program $650 $3,550
Concession License Fee Varies Varies
Mobile Operating Unit $26,000 $78,000
Coffee Equipment $800 $12,000
Optional Equipment $0 $15,000
Mobile Launch Fee $1,500 $1,500
Opening Inventory $1,500 $7,000
POS System, Credit Card Processing and Back Office Computer Equipment (Optional) $0 $10,000
Miscellaneous Opening Costs $1,750 $5,000
Additional Funds - 3 Months $0 $13,500
Real Estate Lease $1,200 $30,000
POS System, Credit Card Processing and Back Office Computer Equipment (Mandatory) $5,000 $10,000
ESTIMATED TOTAL $77,900 $222,550

 

Fixed Operating Units

Name of Fee Low High
Initial Franchise Fee and Training Fee $27,500 $59,500
Travel and Living Expenses Incurred During the Mainland Training Program $650 $3,550
Real Estate Lease $1,200 $30,000
Fixed Kiosk $0 $90,000
Equipment/Decor $7,500 $25,000
Construction $10,000 $160,000
Launch Fee $10,000 $10,000
Architect's Fees $4,000 $12,000
Opening Inventory $2,000 $10,000
Signage $3,500 $12,000
POS System, Credit Card Processing and Back Office Computer Equipment $5,000 $12,000
Miscellaneous Opening Costs $3,000 $8,000
Additional Funds - 3 Months $0 $40,000
ESTIMATED TOTAL $76,000 $385,050

 

Other Fees

Type of Fee Amount
Royalty 0% on all proprietary products. 6% on the gross revenue generated by the sale of approved non-proprietary products purchased from third parties and non-Maui Wowi branded items purchased from the franchisor’s Affiliate.
Marketing Fee 12% of the purchase price of Maui Wowi Products and Maui Wowi Supplies and Equipment. 2% on the gross revenue generated by the sale of approved non¬proprietary products purchased from third parties and non-Maui Wowi branded items purchased from the franchisor’s Affiliate.
Fixed Launch Fee $10,000
Technology Management Fee $75.95/month.
POS System Software Maintenance Support, and Upgrade Contract $99/month.
Additional Training/ Assistance Any additional training conducted at corporate headquarters will be without extra charge (other than travel and living expenses). Any additional training conducted outside of corporate headquarters will cost up to $500 per day (not including travel and living expenses).
Expenses of Attending International Convention $1,000 for one or two to attend a Franchise Owner International Convention, and if the franchisee attends $500 is credited back; $500 for each additional attendee the franchisee brings in excess of two (not including travel and living expenses).
Training Cancellation Fee $500 per person.
Transfer 25% of the then-current Initial Franchise Fee.
Renewal Fee 20% of the franchise fee being charged at the time.
Resale Assistance Fee $12,500 per franchise.
Interest on Past Due Invoices The greater of (i) the Prime Rate plus 4 percent, or (ii) 18 percent per annum calculated monthly on any outstanding balance. "Prime Rate" is the announced base rate applicable to corporate loans in the Wall Street Journal.
Late Fees $100
Costs and Attorneys' Fees Will vary.
Indemnification Under Franchise Agreement Will vary.
Audit Fee Will vary based on cost of audit.
Fees for Dishonor of ACH or Credit Card Payment 2.5% of the Amount Requested as a handling fee, plus a $50 non-sufficient funds or non-sufficient credit fee.

The above information has been taken from the FDD of Maui Wowi. Year of FDD: 2014

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