Café Yumm!
Date Incorporation: 2005
Franchising Since: 2007
Headquarters: 456 Charnelton Street, Eugene OR 97401
Description: Cafe Yumm! restaurants feature rice and bean bowls, wraps, salads, sandwiches, sauces, and other food products and beverages using premium, fresh ingredients. Cafe Yumm! offers vegetarian, vegan, turkey, chicken, and salmon entrees. The products are primarily sold from limited service, fast casual restaurants using their distinctive operating and marketing systems. They also sell sauces and dressings at retail.
Franchise Offer: The franchise on offer is to develop one fast casual restaurant for sit-down and take-out meals, and, at his/her option, delivery and catering services.
Financial Assistance: Café Yumm! does not offer any financing to their franchisees nor do they guarantee any note, lease or obligation.
Training and Assistance: The training offered by Café Yumm! consists of approximately 120 hours over a period of up to three weeks, which may be split between a classroom setting and operating a Cafe Yumm! restaurant. Prior to opening, the franchisor will provide up to an additional 40 hours of instruction over a 4-7 day period in the franchisee's restaurant as well as up to an additional 40 hours of on-site instructional support over a 4-7 day period after opening. During this on-site phase of training, the franchisor will assist the franchisee in hiring opening personnel, training staff and implementing standard operating procedures.
Territory: The franchisee will receive the right to operate a Cafe Yumm! restaurant only at a site approved by the franchisor. The franchisee does not receive an exclusive territory.
Term of Agreement and Renewal: The franchise term is 10 years and can be renewed for only one additional consecutive 10-year term.
Obligations and Restrictions: The franchisee must maintain direct responsibility over their restaurant; however, the franchisor does not require that his franchisee personally supervise the day-to-day operations of the restaurant, although it is strongly recommended.
The franchise agreement permits the franchisee to operate one Cafe Yumm! restaurant at the franchise location only, and nowhere else. The franchisee must offer all menu items, goods, and services designated by the franchisor, and no others. Unless authorized or required by the franchisor, the franchisee may not sell any menu items or ingredients to customers for the purpose of resale, nor engage in sales to wholesale accounts.
Total Number of Units: 6 units by year end 2007
Total Number of franchises Units: 5 franchised units by year end 2007
Financial Statements (revenue): $184,534 – net loss 2007
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Franchise Fee | $35,000 | $35,000 |
| Security deposit | $4,000 | $7,000 |
| Leasehold improvements | $150,000 | $230,000 |
| Equipment/Fixtures | $100,000 | $120,000 |
| Signage | $7,000 | $12,000 |
| Rent | $4,000 | $7,000 |
| Opening inventory of food items | $8,000 | $10,000 |
| Supplies and small wares | $7,000 | $10,000 |
| Miscellaneous business and other licenses, bonds and membership fees | $0 | $1,000 |
| Utility deposits and fees | $1,000 | $2,000 |
| Insurance deposits | $1,000 | $2,000 |
| Grand Opening | $2,000 | $2,000 |
| Travel/Lodging: training expenses | $1,000 | $3,000 |
| Pre-opening employee expenses | $2,000 | $5,000 |
| Additional funds – 3 months | $20,000 | $40,000 |
| Professional fees | $2,000 | $5,000 |
| Computer hardware/software | $4,000 | $8,000 |
| Total | $348,000 | $499,000 |
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| Service | 6% of gross sales |
| System marketing and advertising | Up to 2% of gross sales, but no more than 3% cumulative of all marketing fees. |
| Regional marketing cooperative | Up to 1% of gross sales, but no more than 3% cumulative of all marketing fees. |
| Local advertising and Grand Opening advertising | Minimum of 0.5% of gross sales on quarterly basis and minimum of $2,000 for Grand Opening |
| Advertising deficiency | Amount of local advertising deficiency |
| Renewal fee | 25% of the then-current initial franchise fee |
| Conferences | Reasonable fee under the circumstances |
| Insurance | Will vary under the circumstances |
| Audit | Fee equal to cost of audit, professional fees and expenses billed to franchisor |
| Product purchases | Varies. Items include proprietary products and items purchased in bulk and resold to franchisee |
Date of FDD: July 1st 2008
The above information has been taken from the UFOC/FDD of Café Yumm!
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