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Tastee Freez Franchise Cost & Fees

Date Incorporation: 2003


Headquarters:  Irvine, California   


Description: Tastee Freez is a  quick service restaurants/stores, called Tastee-Freez, featuring soft serve ice cream products and hamburgers, hot dogs, chicken, french fries, drinks and a variety of related menu items


Franchise Offer: The franchisee will have the right to establish and operate one Tastee-Freez restaurant/store from a specified location, within a specified territory. Tastee Freez LLC offer one basic franchise program. The franchisee purchases leases or subleases for the location for their restaurant/store and the furniture, fixtures and equipment. Depending on whether they develop the location or the franchisor does, the franchisee may lease or sublease the real property and furniture, fixtures and equipment from other persons or entities.


Financial Assistance: Yes, the franchisor do offer financial assistance


Training and Assistance:  Tastee Freez provides initial training and on-going training. The franchisee or the general manager must attend the initial training. This occurs after signing the franchise agreement and must be completed before the restaurant’s opening. Tastee Freez's training program is an intense seven-week program that will acquaint the franchisee with the day-to-day requirements of operating a Tastee-Freez restaurant/store. The program involves a six-day workweek, each-day averaging ten or more hours, not including time for reading and homework. It is a self-paced program specifically designed to effectively prepare the franchisee to operate as an independent business person. The training program is divided into four modulesc consisting of 5 1/2 weeks in a Tastee Freez approved training restaurant and 1 ½ weeks in a classroom environment in Irvine, California.


Territory:  The franchise is granted for a specific location which is stated in the franchise agreement.  The franchisor won’t grant a franchise or operate a Tastee-Freez restaurant/store closer than ½ mile from the Store or closer than one mile along the same street.


Term of Agreement and Renewal:  The fee for  renewal is $1,000 per year renewed and the usual term of a franchise agreement is 10 years.  The length of the franchise term is negotiable, however, for a franchise the term is usually 10 or 20 years.


Obligations and Restrictions:   The franchisee or the general manager shall keep the franchise open for business during at least the hours and days specified by Tastee Freez LLC, which may be as many as 24 hours per day, and as many as 365 days per year.  The franchisee, employees and others involved in the franchise can't sell similar food products within 50 miles of any of Tastee Freez restaurants or franchises and can't ever use any of the Tastee Freez methods or formulas except to operate the franchise.


Total Number of Units: 61 (2007)


Financial Statements (revenue): Year ending December 31 2007: $820,748


Investment Tables:

Initial Investment:

Expenditure Low High
Initial Franchise Fee $10,000 $20,000
Rent    $1,500 $23,500
Equipement / Furniture/ Furnishings/ Fixtures   $40,000 $300,000
Opening Inventory $5,000   $8,000
Training    $3,000 $5,500
Insurance     $4,000 $5,800
Uniforms    $1,500 $1,500
Security Deposit    $1,000 $12,000
Real Estate Improvement   $0 $900,000
Advertising fee – 3 months   $3,600 $18,000
Smallwares   $2,500 $2,500
Miscellaneous Opening Cost $1,500 $1,500
Total    $73,600 $1,298,300

Ongoing fees:

Name of Fee   Amount
Service Fee    5% of gross sales
National Advertising    1% of gross sales
Regional Advertising    3% of gross revenues
Rent 1% of gross sales, subject to a minimum monthly rent stated in lease or  sublease
Initial Training Fee  $3,000
Permits and Licenses    Cost incured for permits or licenses
New Restaurant  Employee Training    $2,500
Transfer Fee (Transfer to Someone  else)    $2,000
Transfer Fee (Transfer to Corporation you control)    $500
Cost of Audit    $100- $2,500
 Indemnity    Amount of loss: Attorney’s fees
Attorneys Fees and Court Costs Amount of fees and Cost
Late Charge 10% of the delinquency
Interest Lower of 18% per year or highest rate allowed by law for non personal loan


The above information has been taken from the UFOC/FDD of Tasti D-Lite.

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