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ShakeAway Master Franchise Costs & Fees

Date of Incorporation: 1999
Franchising Since: 2011
Headquarters: Bournemouth, England
Country of Origin: United Kingdom

Business Description: ShakeAway USA LLC is the franchisor. Franchisees operate milkshake bars offering hot and cold milkshake drinks with fresh fruit and other toppings and ingredients, malts, smoothies, frozen yogurt, teas, coffee, coffee related products and other related fast food and drink products using the System and Marks whether owned by the franchisor or any affiliate, or licensed or franchised by the franchisor, any of its affiliates or any master franchisors.

Franchise Offer: The master franchisee will operate a business under the Marks and according to the System that will (i) market and sell franchises to operate ShakeAway Units; (ii) train and assist these Subfranchisees to open and operate ShakeAway Units; (iii) provide local customization of the System and obtain approved suppliers and products for its Subfranchisees; and (iv) operate at least one ShakeAway Unit.

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

Training and Assistance: The initial training program can be expected to take approximately 1 week in addition to the 4 week training master franchisees and their designated manager must take. Master franchisees and their designated manager must complete the initial training program to the franchisor’s satisfaction. Training is held as required in the United Kingdom and you will attend classes in ShakeAway UK’s corporate offices, affiliate-owned units and franchised units. The training will be based on information from the Manual. Any additional training provided following the initial training above (e.g., resulting from turnover in the manager) is at the current rate of $3,000. All managers must have satisfactorily completed the training program. All travel and accommodation expenses shall be the master franchisee’s responsibility.

Territory: Master franchisees must operate their Licensed Business somewhere within their Development Territory. The Development Territory will be determined when both parties agree on the site as described in the Master Franchise Agreement. Typically a Development Territory will be an entire state within the United States. So long as the Master Franchise Agreement is in force and master franchisees are not in default under it or any other agreement with the franchisor or any affiliate of its, neither the franchisor nor its affiliates will own or operate or franchise or license others to own or operate a Licensed Business or a ShakeAway Unit within the Development Territory.

Term of Agreement and Renewal: The length of the initial master franchise term is 5 years. Three additional 5-year renewal terms are available, if requirements are met.

Obligations and Restrictions: ShakeAway master franchisees are required to directly supervise or personally participate in the operation or management of their Licensed Business. The franchisor believes that active involvement in the operation of the Licensed Business increases the likelihood of successful operation. The ShakeAway Unit that master franchisees develop and operate must at all times be under the direct, full-time, on-site supervision of them or a trained and competent full-time manager who has been approved by the franchisor and who has satisfactorily completed the initial training program. Master franchisees are required to carefully monitor and be responsible for the performance of anyone designated to manage the operation of their Unit. The franchisor requires master franchisees to offer and sell only those goods and services that it has approved. The franchisor has the right to change the types of required and/or authorized products and services and master franchisees will be notified by a bulletin or supplement to the Manual or as otherwise communicated to them. Master franchisees are prohibited from offering or selling any services not authorized or approved by the franchisor.

Estimated Number of Units: 40

Investment Tables:
Initial Investment
Name of Fee Low High
Master Franchise Fee $100,000 $2,500,000
Licenses, Dues & Permits $1,000 $3,000
Office Supplies, Equipment and Furniture $12,000 $14,500
Professional Fees $10,000 $25,000
Cold Storage Fee $0 $250
Travel Expenses Related to Training $1,000 $2,000
Travel Expenses Relating to Customizing System and Finding Products and Suppliers $1,000 $5,000
Estimated Initial Investment Cost of Opening Model Unit $97,800 $175,750
Insurance $2,500 $5,000
Additional Funds - 3 months $10,000 $50,000
ESTIMATED TOTAL $235,300 $2,780,500
Other Fees
Type of Fee Amount
Royalty Fee 7% of Gross Sales of all ShakeAway Units in the Development Territory.
Franchise Fee 50% of the Initial Franchise Fee paid by the master franchisee’s Subfranchisees and $12,500 for each of the ShakeAway Units the master franchisee’s affiliates buy.
ShakeAway TV Setup $1500 for the master franchisees and $500 for their Subfranchisees and ongoing monthly fee $100 for all ShakeAway Units in their Development Territory.
ShakeAway Radio Setup $1,500 for master franchisees and $500 for their Subfranchisees Monthly $100-$200 for all ShakeAway Units in their Development Territory.
Approval Fee 50% of all transfer fees paid by all ShakeAway Units in the Development Territory.
Database Fee $40 per month.
Transfer Fee 60% of the then current Master Franchise Fee for a development territory the size of the Development Territory and the franchisor’s travel and professional fees, and 10% of the sale price if the franchisor referred the purchaser.
Renewal $2,000
Taxes Actual assessed amounts.
Marketing and Promotional Materials Reasonable cost.
Approval of Products or Suppliers Reasonable cost.
Additional Training and Assistance Fee and all expenses. Currently the fee is $500 per day per person.
Training of Subsequent General Managers Currently $3,000 and all expenses.
Interest on Late Payment Lesser of 1.5% per month or maximum legal rate.
Audit Cost of the audit and any expenses.
Correction of Deficiency or Unsatisfactory Conditions Actual costs.
Correction of Deficiency or Unsatisfactory Conditions Actual costs.
Costs, Expenses, and Attorneys’ Fees Actual costs.
Indemnification Actual costs.
The Franchisor’s Travel Expenses for Inspections The amount of the franchisor’s legal expenses over $5,000 for the negotiation of the Master Franchise Agreement.
The Franchisor’s Legal Fees for Approving the Master Franchisee’s Changes to the Templates The amount of the franchisor’s legal expenses.

The above information has been taken from the FDD of ShakeAway. Year of FDD: 2016

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