FreshBerry Franchise Cost & Fees
Date Incorporation: 2007
Franchising Since: 2007
Headquarters: Tulsa, Oklahoma
Description: A Freshberry franchise features a specialized menu including, Natural Frozen Yogurt with fresh fruits, cereals, chocolates, candies and other toppings, smoothies, coffee, and other beverages on a dine-in, take¬out, catering and delivery basis. The franchisers distinguishing characteristics include distinctive exterior and interior design, decor, color scheme and furnishings. A franchise is typically located in one of the following types of settings: a food court in a shopping mall, an in-line shopping center, or an in-line urban unit.
- Franchise Unit: Under a Franchise Agreement, the franchisee will be granted the right to establish and operate a Fresh Berry franchise at an agreed upon location.
- Area Development Agreements, will grant the franchisee the right to establish an agreed-upon number of Fresh Berry franchise within an agreed-upon designated area
Financial Assistance: FreshBerry does not offer direct or indirect financing nor do they guarantee any note, lease or obligation.
Training and Assistance: The training program consists of 12 days of instruction by the current management team concerning all aspects of the operation and management of the franchised business. The franchisor will send in a designated number of its training staff for a period of three days prior to opening and two days following the opening of a new franchise. A representatives sent by the franchisor will advise and assist in opening the franchise by coordinating the pre-opening activities and being available to assist with the operations for up to 14 days during the opening weeks, or as reasonably needed.
Territory: Under the franchise agreement, FreshBerry franchise system will grant the right to operate a franchise at a specific location. They will grant the franchisee a protected territory. If the Unit is in an urban area, the protected territory will be up to a one-quarter mile radius around the franchise. If the franchise is in a rural area, the protected territory will be a one-mile radius around the franchise.
Term of Agreement and Renewal: The term of the franchise agreement is 10 years. The franchise agreement can be renewed for ½ of the then-current initial franchise fee for an additional consecutive 10 year term.
Obligations and Restrictions: The franchisee must at all times directly supervise the operation of the franchise or they may employ a manager for this purpose. The manager need not have an ownership interest in a corporate, limited liability company or partnership franchisee, but he or she must have substantial food service experience, demonstrate strong management abilities and promote the "FreshBerry" image to the public. The franchisee must offer for sale and sell only those products and services that FreshBerry Franchise System, LLC has approved.
Total Number of Units in 2009: 5
Total Number of franchises Units 2009: 4
|Initial Franchise Fee||$25,000||$25,000|
|Leasehold Improvements, Construction Cost||$15,000||$75,000|
|Electrical, Plumbing Drywall, Tiles, Installation||$10,000||$63,000|
|Ancillary Real Estate fees||$2,000||$3,000|
|Opening inventory and Supplies||$2,000||$4,000|
|Miscellaneous Opening Costs||$2,500||$5,000|
|Security /Utility deposits, Licenses and Prepaid fees||$1,500||$3,000|
|Initial Operating Capital||$3,000||$10,000|
|Additional Funds (3 months)||$2,000||$5,000|
*These figures do not include any tenant Improvement Allowance
|Name of Fee||Amount|
|Royalty||6% of Gross Sales|
|Transfer fee||$5,000 for a single franchise|
|Local Advertising||1% of Gross Sales|
|National Creative Fund contributions||1 % of Gross Sales|
|Renewal||One-half of the then-current initial franchise fee|
|Interest on late payment||Lesser of 2% above prime or highest contract rate of interest allowed by law|
|Indemnification||Will vary under circumstances|
|Audit fee||Cost of the audit, plus any
understated amount due with interest
The above information has been taken from the UFOC/FDD of FreshBerry
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