Saladworks Franchise Cost & Fees
Date of Incorporation: 1986
Franchising Since: 1992
Headquarters: Conshohocken, Pennsylvania
Business Description: Saladworks, LLC is the franchisor of the business. Franchisees operate Saladworks restaurants featuring a variety of salads, sandwiches, wraps, panini, soups, bread and beverages for lunch, dinner, catering and take-home.
Franchise Offer: Qualified individuals may be offered the right to open a single restaurant under the terms of a single franchise agreement. The franchisor also offers qualified individuals the right to open a minimum number of Saladworks restaurants in a designated area under the terms of a multi-unit development agreement. Franchisees must sign a franchise agreement for each restaurant opened under the multi-unit development agreement.
Financial Assistance: Saladworks has established an informal referral relationship with third-party lender, BoeFly LLC, a web-based marketplace that brings together borrowers and lenders for the purpose of obtaining start-up funding. Although Saladworks pays BoeFly LLC a monthly fee to provide prospective franchisees with access to BoeFly LLC's services, neither Saladworks nor its affiliates receive any consideration from BoeFly LLC or any lender for financing placed with any lender. In addition, HSS Leasing, LLC, an affiliate, may, but is not obligated to, provide equipment and leasehold improvement leasing assistance. The availability of leasing assistance will be determined by HSS Leasing at its sole discretion.
Training and Assistance: The required training lasts about four weeks and consists of classroom and practical experience. The classroom portion of the training program is conducted at Saladworks corporate headquarters, currently located in Conshohocken, Pennsylvania, and the on-the-job training is conducted at a Saladworks restaurant in Mount Laurel, New Jersey. Based on availability, the franchisor also may designate alternative training restaurants that may be closer to the franchisee’s location. The required mock opening of the franchised restaurant will take place at the premises of the franchisee’s restaurant, as will the assistance given to the franchisee by one of Saladworks’ representatives immediately before the opening of the restaurant. Franchisees must train their other employees. Saladworks will provide franchisees with training materials for use in training their personnel on its private internet site. In addition, there is a 2-day sanitation certification course as prepared by the National Restaurant Association and presented by the Saladworks training department. Saladworks may also offer additional training or refresher courses or seminars to be conducted at its headquarters or at another place designated, and the franchisee and/or manager may be required to attend these courses.
Territory: Each Saladworks restaurant will operate from a specific location which the franchisor accepts (“accepted location”) which will be identified on the Data Sheet of the franchise agreement. Within 30 days of your execution of a lease for the accepted location, Saladworks will provide the franchisee with a protected territory (“Territory”) for the accepted location. The scope and size of the Territory will be in Saladworks’ sole discretion, based on the following factors: general location, traffic patterns, parking availability, size of site in relation to building type, access, visibility, area demographics, population density, surrounding area commercial activity, and market demands.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. The franchisee has the right to renew the franchise for successive 10-year terms, if certain conditions are met.
Obligations and Restrictions: The franchisee (or at least one of the principals if a corporation, Limited Liability Company or partnership) must personally supervise the day-to-day operations of the restaurant. The franchisee must devote his/her personal full-time attention and best efforts to the management and operation of the restaurant. The franchisee may, however, delegate the day-to-day operation of your restaurant to a manager. The Manager must successfully complete the initial training program before assuming any managerial responsibility. The restaurant must, at all times, be managed by the franchisee or an approved Manager who has successfully completed the initial training program. The franchisee, and your shareholders, members, officers, directors and managers, will be bound by the confidentiality and non-compete covenants of the franchise agreement. The franchisee may offer for sale and sell only those food and beverage products and accompanying services that the franchisor has approved for the System.
Estimated Number of Units: 101
|Name of Fee||Low||High|
|Initial Franchise Fee||$30,000||$35,000|
|Architectural Plan Review||$0||$1,000|
|Permits & License Fees||$0||$250|
|Equipment and Furniture||$110,701||$110,701|
|Point of Sale System||$11,000||$14,200|
|Signage (interior and exterior) and Small goods||$34,158||$34,158|
|Travel & Living Expenses While Trainings||$0||$2,500|
|Grand Opening Advertising||$5,000||$5,000|
|Miscellaneous Opening Costs||$10,095||$12,000|
|ESTIMATED TOTAL (Excluding Real Property Costs)||$494,459||$509,314|
|Type of Fee||Amount|
|Royalty Fee||5% of total Net Sales.|
|Brand Development Fund Fee||Currently, 1.5% of Net Sales for store not located in food court, 3% for store located in food court.|
|Local Advertising and Promotion||1% of Net Sales for Stores located in a food court, 2% for stores not located in a food court.|
|Unauthorized Advertising Fee||$1,000 per occurrence.|
|Non-approved Restaurant Opening||$500 for each day your restaurant is open without our approval.|
|Sublease Fee||0.5% of Net Sales.|
|Maintenance/ Repair/ Refurbishing||Actual Amount Incurred.|
|Transfer Fee||50% of the then-current initial franchise fee.|
|Commission||5% to 10% of Purchase Price.|
|Costs & Attorneys' Fees||Actual Amount Incurred.|
|Interest||Lesser of 18% per year, or highest rate allowed by law, plus $100 (In California, the highest lawful rate of interest is 10% per annum).|
|Insufficient Funds Fee||Lesser of 18% per year, or highest rate allowed by law, plus $100|
|Audit Expenses||Actual amount incurred; cost ranges from $250 to $7,500|
|Insurance||Cost of insurance. If franchisee fails to maintain insurance as required, there is an 18% administrative cost charge if Saladworks exercises their right to procure the franchisee’s insurance.|
|Service Fee||$600 per day.|
|Supplier Evaluation Fee||A minimum of $500|
|Annual Convention||$0 to $2,000|
|Failure to Attend Annual Convention||$500|
|Training Cancellation Fees||Currently $400 per person.|
|Alternative Form of Operations Manual Fee||Currently $300 per set.|
|Failure to Open By Required Opening Date (or Opening Without Written Approval) Fee||Currently $500 per day.|
The above information has been taken from the FDD of Saladworks. Year of FDD: 2016
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