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Corporate Caterers Franchise Costs & Fees

Date of Incorporation: 1997
Franchising Since: 2007
Headquarters: Miami, Florida

Business Description: Corporate Caterers Franchise, LLC is the franchisor. The Franchised Business utilizes the latest in food preparation techniques and proprietary management concepts and recipes. Food is delivered to business and commercial office locations.

Franchise Offer: The franchisee will operate one or more franchised businesses offering freshly prepared food items for catering breakfast and lunch to businesses within the franchisee’s Assigned Area.

Financial Assistance: The franchisor does not offer direct or indirect financing, but it reserves the right to finance the initial franchise fee in the future. The franchisor does not guarantee franchisees’ note, lease or obligation. The franchisor has been deemed eligible for streamlined and expedited loan processing through the U.S. Small Business Administration. Financing will depend on the franchisee’s creditworthiness and available collateral to secure the loan.

Training and Assistance: The initial training program consists of approximately 2½ to 4 weeks of training which will be held at the franchisor’s corporate training facilities or another location it designates. The Operating Principal and another manager/cook must complete the initial training program to the franchisor’s satisfaction. The franchisor will provide on-site training for up to 10 days, at the Authorized Location, either prior to the opening of the Franchised Business or during the franchisee’s 1st year of operation. These 10 days, up to 80 hours, may or may not be concurrent. Franchisees, the Operating Principal, and their employees may attend additional or remedial training programs and seminars as the franchisor may offer from time to time.

Territory: The Franchise Agreement grants to franchisees the right to operate a Franchised Business at a single Authorized Location selected by franchisees and approved by the franchisor that includes an exclusive area having a population of at least 200,000 people, unless the franchisor determines otherwise. The franchisor will not establish or operate another Franchised Business or authorize any other person or entity to establish a franchised business within the Assigned Area, unless otherwise mutually agreed in writing, as long as the franchisee is in good standing and not in any default.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are not in default, they can renew the franchise for 3 sequential terms of 10 years each.

Obligations and Restrictions: Franchisees must designate and retain an individual to serve as the “Operating Principal” under the terms of the Franchise Agreement. The Operating Principal is the individual who has the authority to actively direct the business affairs with respect to the Franchised Business, is responsible for overseeing the general management of the Franchised Business, and has authority to sign all contracts. If the franchisee is an individual, he/she must perform all obligations of the Operating Principal. If the franchisee is an Entity, the Operating Principal must own at least 51% of the equity interests. Franchisees are required to use the Authorized Location solely for the operation of the Franchised Business and must maintain business hours as provided for in the Manuals or as the franchisor may specify from time to time in writing.

Estimated Number of Units: 25

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $40,000 $40,000
Real Estate Varies
Leasehold Improvements $0 $10,000
Lease Deposits $0 $10,500
Equipment Package $12,000 $40,000
Office/Phone Equipment $1,000 $3,000
Computer System (Hardware) $1,500 $3,000
Accounting and Management Software $6,500 $10,000
Inventory $12,500 $14,000
Training $3,000 $10,000
Internet Maintenance $500 $500
Professional Fees $2,500 $4,000
Delivery Vehicle $0 $1,200
Additional Funds (first 3 months) $20,000 $30,000
ESTIMATED TOTAL $99,500 $166,200
Other Fees
Type of Fee Amount
Royalty 5% of Gross Sales.
System-Wide Marketing Fee 2% of Gross Sales.
Local Advertising 1% of Gross Sales.
Insurance Premiums vary depending on location.
Training No cost for training 2 people; $5,000 for each additional person.
Commercial Cooking Training No cost for training at the franchisor’s headquarters; $5,000 if at the franchisee’s location.
Audit Cost of audit plus 18% interest.
Site Evolution Costs All of the franchisor’s reasonable costs and expenses, but not more than $1,000 per evaluation after free evaluations are performed.
Transfer $10,000 from transferee.
Renewal 25% of our then-current initial franchise fee.
Management 4% of Gross Sales.
Employment Up to amount of previous annual compensation.
Private or Public Offering $5,000
Interest 18% or maximum rate, whichever is less.
Legal Actual legal fees and expenses.
Internet Franchisee Page/Link Not more than $400 per year (Approximately $30 per month).
Intranet Maintenance Fee Not more than $500 per year (Approximately $40 per month).

The above information has been taken from the FDD of Corporate Caterers. Year of FDD: 2015

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