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Doc Popcorn Franchise Costs & Fees

Date of Incorporation: 2003
Franchising Since: 2009
Headquarters: Paducah, Kentucky

Business Description: Doc Popcorn Franchising L.L.C. is the franchisor. Doc Popcorn businesses provide popcorn and related items including soft drinks, bottled water, and other products to the general public. Doc Popcorn franchises may be operated from mobile units, kiosks and retail stores.

Franchise Offer: All Doc Popcorn Businesses are operated under the Marks using the franchisor’s unique and proprietary system and related methods of doing business and proprietary method of preparing, marketing and selling Doc Popcorn Products.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee franchisees’ note, lease or obligation.

Training and Assistance: The franchisor provides an initial training program (PopTraining Program) in Broomfield, Colorado or at another site it designates. The PopTraining Program usually lasts approximately 4 to 10 days depending on the type of Doc Popcorn Business franchisees choose to open as their first Doc Popcorn Business. Franchisees (or, if franchisees are not an individual, then a managing member, partner or officer designated by the franchisee to participate personally in the Doc Popcorn Business) must attend and successfully complete our PopTraining Program at any point in time prior to making any sales to the public through the Doc Popcorn Business, unless the franchisor agrees otherwise in writing, in its sole discretion. Any person designated by franchisees to assume the primary responsibility for operating one of the individual Doc Popcorn Businesses (Manager) must attend and successfully complete the PopTraining Program prior to the time that franchisees make any sales to the public through that Doc Popcorn Business. The franchisor may implement additional training at the Doc Popcorn Businesses prior to opening a franchisee’s first location. This training would last approximately 5 to 10 days and franchisees will be responsible for all transportation and living expenses of each person who they designate to attend. The managing owner, designated manager, independent contractors and employees must attend and satisfactorily complete various training courses the franchisor periodically requires at the franchisee’s cost and at the times and locations the franchisor designates.

Territory: The territorial protections for the franchise will depend on the type of Doc Popcorn Business. If franchisees are operating a Mobile Poperating Unit, they may operate at any Event except for a “Protected Event” of another franchisee. If franchises are operating a Fixed Poperating Unit, they may operate at any location that has been approved in writing by the franchisor. Other than the specific approved site or the operation at a Protected Event, franchisees will not receive an exclusive territory based on distance, geography or population.

Term of Agreement and Renewal: The length of the initial franchise term is 5 years. Franchisees may renew the term of the Agreement for 2 additional consecutive terms of 5 years each, if they are in good standing and satisfy other requirements set forth in the Franchise Agreement.

Obligations and Restrictions: The franchisor recommends that franchisees (or, if franchisees are not an individual, then a managing member, partner or officer designated by the franchisee to participate personally in the Doc Popcorn Business) be the primary operator of the Doc Popcorn 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 Doc Popcorn Business. Franchisees must follow the franchisor’s policies, procedures, methods, and techniques. Franchisees must sell or offer for sale all types of services and products specified by the franchisor.

Estimated Number of Units: 105

Investment Tables:
Initial Investment for a PopCart (Mobile and Permanent Mobile Unit)
Name of Fee Low High
Initial Franchise Fee $7,500 $15,000
PopCart $22,500 $27,500
PorCart Accessories $0 $20,785
PopCart Transport Trailer $500 $10,000
Vehicle $0 $12,000
Opening Inventory $1,000 $5,000
Computer Equipment $3,000 $6,000
Initial Training Expenses $1,000 $3,550
Real Estate Lease $0 $12,500
Miscellaneous Opening Costs $1,500 $5,000
Additional Funds - 3 months $2,500 $4,000
ESTIMATED TOTAL $39,500 $121,335
Initial Investment for a PopKiosk or PopShop
Name of Fee Low High
Initial Franchise Fee $7,500 $15,000
Travel and Living Expenses $1,000 $3,500
Equipment/Décor $20,000 $70,000
Construction $63,500 $130,000
Store Creation Fee $10,000 $10,000
Architech's Fees $0 $14,000
Opening Inventory $4,000 $10,000
Computer Equipment $3,000 $6,000
Signage $3,500 $312,00
Real Estate Lease $0 $32,000
Miscellaneous Opening Costs $3,000 $12,500
Additional Funds - 3 months $5,000 $40,000
ESTIMATED TOTAL $121,500 $355,050
Other Fees
Type of Fee Amount
Royalty 6% of Gross Revenue.
Brand Building Fund Fee Not currently charged.
Local Advertising Requirement 2% of the monthly Gross Revenue.
Technology Fee $65 per month.
Point-of-Sale Software $100 per month.
Reward Loyalty Fee Not currently charged.
Additional Training/Assistance Then current charge (up to $500 per day, not including travel and living expenses).
Additional Person Training Fee $1,500 per additional attendee.
Training Cancellation Fee $500
Transfer Fee 25% of the then-current Initial Franchise Fee.
Successor Franchise Fee 20% of the then current initial franchise fee.
Resale Assistance Fee $12,500 per Doc Popcorn Business.
Interest The greater of (i) the Prime Rate plus 8%, (ii) 18% per annum.
Late Reporting Fee $100 per occurrence and $100 per week.
Unauthorized Advertising Fee $500 per occurrence.
Legal Costs and Professional Fees Will vary under circumstances.
Indemnification Will vary under circumstances.
Audit Expenses Cost of audit and inspection, any understated amounts, and any related accounting and legal expenses (the franchisor estimates this cost to be between $1,000 and $12,000)
Non-Sufficient Funds Fee The lesser of (1) $50 per occurrence and 2.5% of the amount requested or (2) the highest amount allowed by state law.
Payment Service Fees Up to 4% of total charge.
Promotional Materials Fee Varies depending on merchandise.
Custom Advertising Fee Actual costs plus 20% administration fee.
Customer Satisfaction Reimbursement Will vary under circumstances.
Supplier and Product Evaluation Fee Costs of inspection (estimated to be approximately $100 to $500)

The above information has been taken from the FDD of Doc Popcorn. Year of FDD: 2015

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