America's #1 Franchise Directory, Trusted for Over 15 Years
Request More Information

NrGize Lifestyle Cafe Franchise Costs & Fees

Date of Incorporation: 2006
Franchising Since: 2006
Headquarters: Scottsdale, Arizona

Business Description: The franchisor is Kahala Franchising, L.L.C. Franchisees operate restaurants called NrGize Lifestyle Cafes preparing and serving low-calorie smoothies, fruit drinks, nutritional supplements, and other beverage and food items.

Franchise Offer: If qualified, franchisees may (i) construct a new NrGize Lifestyle Cafe restaurant; (ii) purchase one of the franchisor’s NrGize Lifestyle Cafe franchises by acquiring an existing business from another franchisee or from the franchisor; or (iii) convert all of their existing retail operations from another brand to the franchisor’s NrGize Lifestyle Cafe brand.

Financial Assistance: The franchisor does not offer any direct or indirect financing or financing arrangement, nor will it guaranty franchisees’ obligations under any note or other obligation, except potentially for the lease for their site or if they purchase a restaurant corporate-owned “as-is” by one of its affiliates, and only in its sole and absolute discretion.

Training and Assistance: The franchisor will make a Training Program available to franchisees and their designated representative after they sign the Franchise Agreement. The classroom portion of the Training Program will be held at KTEC, which is located at the franchisor’s corporate offices in Scottsdale, Arizona, and the in-store portion of the Training Program will be held at the designated training restaurant in the metropolitan Phoenix, Arizona area, or at such other location(s) as the franchisor may designate in its sole discretion. The franchisor will provide one of its representatives to come to the franchisee’s restaurant during opening week for up to three days at its expense to work with the franchisee and manager on the grand opening, and on operating and marketing the restaurant. The franchisor may, in the future, hold refresher or additional training programs, conferences and seminars. Franchisees’ attendance at these programs is mandatory.

Territory: The franchise is granted only for the location specified in the Franchise Agreement or a location to be approved by the franchisor. The specific site of the NrGize Lifestyle Cafe restaurant is subject to the franchisor’s approval. Franchisees will not receive an exclusive territory. They may face competition from other franchisees, from restaurants that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls.

Term of Agreement and Renewal: If franchisees are purchasing a new or existing non-operating restaurant, the term is 10 years from the date the restaurant opens to the public. If franchisees are purchasing an existing and operating restaurant, the term is 10 years from the effective date of the franchise agreement. If franchisees are not in default and satisfy certain conditions, they may renew for 10 years. If the franchise is to be located within an LA Fitness health club: Term is the earlier of the following: (i) the 5-year anniversary of the date of the Franchise Agreement; (ii) the expiration of the term of the single-unit facility license agreement for the premises of the Franchised Business; (iii) the termination or expiration of the Master Facility License Agreement; or (iv) the date that LA Fitness ceases operating a health club at the location where the Franchised Business is located. If the franchise is to be located within an LA Fitness health club: If franchisees are not in default and satisfy certain conditions, they may renew for the shorter of the following: (i) 5 years; or (ii) the term of the new single-unit facility license agreement for the premises of the Franchised Business.

Obligations and Restrictions: While the Franchise Agreement does not specifically require franchisees or their principals to personally participate in the direct operation of the franchise, it is the franchisor’s intention to select as NrGize franchisees only those who plan to actively participate in the direct operation and daily affairs of the NrGize Lifestyle Cafe. The franchise must be personally managed with on-premises supervision and directly operated by franchisees or another partner, shareholder or member of their business organization, or a manager who must have successfully completed the Training Program. If franchisees are a married individual, their spouse must sign the Guaranty of Franchise Agreement under the spousal consent, and, if applicable, to the Single-Unit Facility License Agreement or Sublease. The franchisor requires that the business is solely that of an NrGize Lifestyle Cafe, and franchisees may not conduct any other business or activity at the site of the restaurant without the franchisor’s prior written approval. For traditional NrGize Lifestyle Cafe franchises, franchisees must offer the full menu prescribed by the franchisor, subject to change from time to time in its sole discretion. Non-traditional NrGize Lifestyle Café franchises may offer a more limited menu than the traditional NrGize Lifestyle Cafe franchises, as detailed in the Operations Manuals.

Estimated Number of Units: 105

Investment Tables:
Initial Investment for a Traditional Location (excluding those located within an LA Fitness health club)
Name of Fee Low High
Initial Franchise Fee $14,000 $30,000
Lease Review Fee $0 $1,250
Rent/Security Deposit (for 3 months) $6,000 $30,000
Travel and Living Expenses (2 persons) while training, not including salaries, if any, for franchisees and their employees $2,500 $5,000
Real Estate Varies
Leasehold Improvements, Restaurant Equipment, Furniture, and Small Wares, Menu Panels, Computer Hardware, Cameras, Security Devices and Security Software, if applicable (collectively, the “POS System”) $60,000 $225,000
PCI Compliance Costs $150 $1,300
Opening Inventory (food and paper) $1,000 $5,000
Business Insurance $1,000 $5,000
Miscellaneous Opening Costs $4,750 $15,500
Grand Opening $0 $5,000
Depository Account $3,000 $3,000
Additional Funds - 3 months initial period $5,000 $15,000
ESTIMATED TOTAL (Does not include real estate costs and/or rent for the business location except for the initial security deposit.) $75,900 $310,550
Initial Investment for a Non-Traditional Location
Name of Fee Low High
Initial Franchise Fee $4,000 $7,500
Lease Review Fee $0 $1,250
Rent/Security Deposit (for 3 months) $6,000 $30,000
Travel and Living Expenses (2 persons) while training, not including salaries, if any, for franchisees and their employees $2,500 $5,000
Real Estate Varies
Architectural and Project Management Fees $4000 $10,000
Leasehold Improvements $10,000 $125,000
Restaurant Equipment, Furniture, and Small Wares $20,000 $45,000
Interior and Exterior Signage and Menu Panels $5,000 $20,000
Computer Hardware, Software (POS System) $8,000 $15,000
PCI Compliance Costs $150 $1,300
Business Insurance $1,000 $5,000
Miscellaneous Opening Costs $4,750 $15,500
Grand Opening $0 $5,000
Depository Account $3,000 $3,000
Additional Funds - 3 months initial period $5,000 $15,000
ESTIMATED TOTAL (Does not include real estate costs and/or rent for the business location except for the initial security deposit.) $75,900 $310,550
Other Fees
Type of Fee Amount
Royalty Fee and Surcharge – excluding NrGize Restaurants Located within LA Fitness Health Clubs Royalty Fee is the greater of the following: (i) 6% of total weekly Gross Sales or (ii) $150 per week. Surcharge is a maximum of $10 per week in addition to the Royalty Fee.
Royalty Fee and Surcharge - for NrGize Restaurants Located within LA Fitness Health Clubs ONLY The Royalty Fee is a flat fee that is determined on a per restaurant basis based upon the most current number of card swipes or “adjusted average number of daily member check-ins”. Surcharge is a maximum of $10 per week in addition to the Royalty Fee.
Advertising Fees Up to 4% of weekly Gross Sales.
Additional Persons Training Fee $1,000 per person ($500 per person for the In-Store portion of the Training Program, and $500 per person for the New Owner Training portion of the Training Program).
Annual Meeting Registration Fee Up to $1,000 plus incidental costs to attend.
Monthly Service Fee charged by LA Fitness (only applies to NrGize franchises located within an LA Fitness health club) $50,000 if the franchisee simultaneously buys two Territories when he/she signs the first franchise agreement.
An amount equal to the then-current initial Territory fee if the franchisee buys an Additional Territory at a later time.
Pre-Paid Monthly Service Fee charged by LA Fitness and collected in advance by Kahala Holdings (only applies to NrGize franchises located within an LA Fitness health club) Either $12,000 or $15,000
Depository Account $3,000 (Must be replenished on a regular basis).
Data Fees Up to $75 per month (Subject to reasonable annual and/or service enhancement increases).
POS Help Desk Phone Support Maintenance Contract Fee $55 per month.
Renewal Fee $5,000
Transfer Fee – Traditional Locations $20,000 (if transfer occurs within first 24 months of effective date of Franchise Agreement); $7,500 (if transfer occurs more than 24 months after the effective date of the Franchise Agreement).
Transfer Fee – Non-Traditional Locations $5,000 for non-traditional locations.
Relocation Fee $500
Additional Training Fee in the Event of a Transfer of the Franchise Agreement $2,500 for 2 individuals ($500 for each additional individual).
Additional Training Fee $300 per person per day.
Document Administration Fee (if redraft is requested by franchisee) $500
Default Interest under the Franchise Agreement $50 plus interest at 1.5% per month or maximum legal rate, if less.
Interest and Late Fees under the Single-Unit Facility License Agreement (only applies to NrGize franchises located within an LA Fitness health club) Annual rate of 12% or the maximum interest rate permitted by applicable law. Any payments received 5 days or more after the due date may be assessed and additional fee equal to 10% of the original payment due plus 1% per day on the overdue amount.
Late Report Fee $100 per report.
Collection Costs All collection costs including reasonable attorneys' fees.
Non-Sufficient Funds $50 for each electronic funds transfer returned for non-sufficient funds; $25 for each check or draft returned for non-sufficient funds.
Audit Cost of Audit plus interest at Default Rate on underpayments or the maximum rate permissible by law.
New Supplier Approval Fee A charge not to exceed the reasonable cost of the inspection and the actual cost of the test not to exceed $5,000
Non-Participation Fee $100 per day.
Reinstatement Fee $2,500
Early Termination Fee The average monthly Royalty and Advertising Fees paid for any consecutive 12 month period within the preceding 48 month period multiplied by the number of months remaining in the term of the Franchise Agreement, and the product is divided by 2
Management Fee 6% of the Franchised Business’ Gross Sales (in addition to the Royalty Fee and Advertising Fee) plus the franchisor’s direct out-of-pocket costs and expenses.

The above information has been taken from the FDD of NrGize Lifestyle Cafe. Year of FDD: 2015

Franchise Direct's Disclaimer


 

Submit this form and a representative of NrGize Lifestyle Cafe™ will contact you with more information.

Contact Information

Full Name*

Email Address*

Phone Number*

Best Time to Call

Mailing Information

Street*

City*

State/Province*

Zip/Postal Code*

Country*

Investment Interest

Desired Investment*

Desired Location*

Additional Information (Optional)

Timeframe to Invest

Preferred Method of Contact

Alternate Phone Number

Comments? Questions?

The following items are in your Request List:

We can also forward your request to the companies you have added to your Request List. Please review the list below and confirm the companies you would like to contact.

* indicates required field.

Yes, send me updates on new franchise opportunities!

Franchise Direct’s reputation for integrity in the franchise industry has been established over its 15 years in business. We NEVER sell your information or share it with anyone other than the companies from which you have requested information.

This advertisement does not constitute a franchise offering. Please read our terms and conditions and privacy policy for full details.

You may be interested in the following franchises...

NrGize Lifestyle Cafe™ The NrGize Lifestyle Cafe meets the huge demand for healthy food choices. Be a part of it! Request Info Min. Cash Required:
$100,000.

Bruster's® Real Ice Cream At Bruster's, the passion for extraordinary ice cream and stellar customer service runs deep. Be part of it! Request Info Min. Cash Required:
$75,000.

Your Request List

You can add items by clicking the "Add to Request List" button or checkbox when you find something you're interested in.

You may add up to 15 items to your Request List

Your request list will follow you around the site.

When you are ready to complete your request for free information, click "Submit" in your Request List.

Why not get started by browsing our New Franchise Opportunities or Low Cost Franchise Directory?

You may only enter 15 items in your Request List.

To request information from your selected companies, just fill in the form and click "Submit".

OK, got it

Request Info From:

  •  

Your List is Empty

You can add items by checking the "Request FREE Info" boxes.

* indicates required field

Optional Information

Join our mailing list!

We share your information only with your selected franchises.