Zio's
Date Incorporation: 2008
Franchising Since: 2008
Headquarters: Texas
Description: The franchise is for the establishment and operation of a restaurant offering high quality Italian cuisine and other food items as well as various alcoholic and non-alcoholic beverages
Franchise Offer: The franchisor is offering the right to operate a single Zio's restaurant. They are also offering qualified applicants the right to enter into a development agreement to develop two or more restaurants within a specific geographic area.
Financial Assistance: The franchisor does not offer direct or indirect financing
Training and Assistance: The franchisee, district manager (if applicable), and restaurant managers (including 1 general manager, 1 kitchen manager and 2 assistant managers) must have attended and completed the initial management training program. Initial training is conducted in San Antonio, Texas, and lasts approximately 8 to 12 weeks.
Territory: The franchisee will not receive an exclusive territory. They may face competition from other franchisees, from company owned outlets, or from other channels of distribution or competitive brands.
Term of Agreement and Renewal: The length of the franchise term is 10 years, with an option for renew for 2 additional 5-year terms.
Obligations and Restrictions: The franchisee or district manager must devote his or her full time and best efforts to the supervision of the franchise. The restaurant managers are responsible for the daily operation and management of the restaurant, and must devote their full time and best efforts to the business and may not engage in any other business. They must also satisfy the training requirements in the Franchise Agreement.
Total Number of Units: 15 outlets at the end of 2007
Total Number of franchises Units: No franchised outlets at the end of 2007
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Development Fee | Varies | Varies |
| Initial Franchise Fees | $50,000 | $50,000 |
| First Month's Rent and Security Deposit | $10,000 | $40,000 |
| Leasehold Improvements | $501,000 | $1,420,000 |
| Furniture, Fixtures, Equipment and Signage | $470,000 | $855,000 |
| Smallwares | $20,000 | $60,000 |
| Utility Expenses | $8,000 | $20,000 |
| Computer Hardware and Software | $20,200 | $35,200 |
| Business Licenses and Permits | $2,000 | $40,000 |
| Initial Training Costs | $68,000 | $130,000 |
| Hiring Costs | $7,500 | $12,500 |
| Initial Inventory/Supplies | $10,000 | $45,000 |
| Grand Opening Costs | $12,500 | $12,500 |
| Insurance | $5,000 | $10,000 |
| Architect and Other Professional Fees | $14,000 | $37,000 |
| Liquor License | Varies | Varies |
| Additional Funds - For Initial 3 Month Period | $20,000 | $150,000 |
| TOTAL | $1,218,200 | $2,917,200 |
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| Royalty Fee | 4% of Gross Sales |
| Advertising Assessment (including Advertising Fund contribution and local advertising requirement) | A maximum of 4% of Gross Sales. Currently 2% of Gross Sales. |
| Advertising and Promotional Material | Reasonable fee based on cost. |
| V-Bos Software Maintenance and Support Fee | $200 per month per Restaurant |
| Internet Listings | Cost |
| Merchandise for Resale; Equipment; Decor Items | Reasonable cost |
| Interest | 18% per year or the maximum lawful rate |
| Late Fee | $100 per month |
| Additional Training | A per diem rate of $300 per trainer, based on the costs of providing the training |
| On-site Remedial Training | The then-current per diem fee for remedial training, plus costs. The current per diem rate is $300 per trainer |
| Renewal Fee | $10,000 |
| Transfer Fee |
Franchise Agreement: 75% of the then-current initial franchise fee Development Agreement: 75% of our then-current initial franchise fee |
| Securities Offering Fee | Our reasonable costs and expenses associated with the proposed offering |
| Inspection and Testing | Cost of inspection, if applicable, and cost of test |
| Indemnification | Varies according to loss |
| Audit Fee | Cost of audit |
| Intranet Fee | A reasonable amount based on usage |
| Insurance Fee | A reasonable amount based on expenses |
| Enforcement Costs | Will vary |
Date of FDD: 25/6/2008
The above information has been taken from the UFOC/FDD of Zio’s
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