Little Scoops
Date Incorporation: 2003
Franchising Since: 2005
Headquarters: New York
Description: LS Franchise Corp grants franchises for the operation of retail establishments known as "Little Scoops" stores. Little Scoops Stores are ice cream parlor cafes and retail stores providing birthday parties, special events and family entertainment in an ice cream parlor motif complete with stools, counter tops and dipping cases.
Franchise Offer: The franchise offered by LS Franchise Corp is for the right to own and operate a Little Scoops Store. The franchisee will be responsible for booking the parties, ordering inventory, coordinating and scheduling party counselors, hiring and running the parties and any retail business.
Territory: The franchisor grants the right to operate the franchise only at an approved location. The franchisor will grant an exclusive territory which will be determined according to geography, population and number of households. This territory will be delineated by zip codes. The franchisee must obtain a location, subject to the franchisor’s approval.
Financial Assistance: LS Franchise Corp does not offer direct or indirect financing. They do not guarantee any note, lease or obligation.
Training and Assistance: The franchisee must complete to the satisfaction of the franchisor a training program in the operation of a Little Scoops Store. LS Franchise Corp will train up to four people without charge. The Franchise Owner is responsible for the travel and living expenses of the people attending the training. The training will last for approximately one week, with two additional weeks at the Store.
Obligations and Restrictions: The franchise agreement requires that the franchisee personally supervise the operation of the Little Scoops Store, and requires the franchisee to participate in its day-to-day operations. All stores must be opened daily during normal business hours, except for major holidays, in addition to when parties are scheduled outside normal business hours. The franchisee is bound by the provisions of the franchise agreement with respect to restrictions on goods and services offered by Little Scoops Stores. The franchisee must offer all products and services that are designated by the franchisor as required for Little Scoops Stores. LS Franchise Corp has the right to change the types of authorized products and service.
Term of the Franchise Agreement and renewal: The term of the franchise agreement is 10 years and there is a possibility of two 5 year renewals if the franchisee meets certain requirements.
Total Number of Units end of 2007: 8 (1 Company owned outlet)
Investment Tables:
Initial Investment:
| Expenditure | Low | High |
|---|---|---|
| Initial Franchise Fee | $32,500 | $32,500 |
| Leasehold Improvement | $30,000 | $60,000 |
| Furniture, Fixtures and Equipment | $4,000 | $7,000 |
| First Three Month’s Rent | $6,000 | $20,000 |
| Opening Inventory and Supplies | $3,000 | $4,000 |
| Signage | $4,500 | $10,000 |
| Grand Opening Advertising | $5,000 | $5,000 |
| Advertising Fee – 3 months | $3,000 | $6,000 |
| Music Licensing Fees | $250 | $1,000 |
| Miscellaneous Opening Costs | $3,000 | $5,000 |
| Additional Funds | $10,000 | $15,000 |
| Total Estimated Initial Investment | $103,250 | $169,500 |
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| Royalties | 6% of weekly Gross Sales |
| Transfer Fee | $15,500 |
| Renewal Franchise Fee | None |
| Audit Expenses | Cost of audit will vary depending on the circumstances |
| Interest | Highest legal rate or 2% above the prime rate |
| Cost and Legal Fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
| Brand Development Fund Contributions | 1% of weekly gross sales |
| Local Advertising | Minimum of $1,000 per month |
| Local Advertising Cooperative | $2,500 per quarter |
| Insurance Costs | Reimbursement of cost and premium |
| Initial Training | Attendees’ expenses in attending initial training; training fee for any new Store manager hired after the store opens, not to exceed $1,500 |
| Additional Training | Reimbursement of our cost plus $ 250 per day |
| Additional Guidance and Assistance | Per diem charged and expenses |
| Late Payment Fee | $50 per Store Period |
| Gift card Program | Will vary |
| Music Licensing | $225 to $1,000 |
The above information has been taken from the UFOC/FDD of LS Franchise Corp
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