Tasti D-Lite
Date Incorporation: 2008
Franchising Since: 2007
Headquarters: Franklin, Tennessee
Description: Tasti D-Lite LLC offers franchises for Tasti Centers that sell wide variety of products, including proprietary frozen dessert, syrups, toppings, mix-in, smoothies, shakes, cakes and pies, confections, novelties, hot and cold beverages, hot and cold breakfast item, functional beverages, bottled water, health and wellness supplements, complimentary and compatible product, and other assorted items. Tasti Centers seek to appeal to health conscious consumers. Tasti Centers utilize distinctive interior and exterior store designs and layouts, operate with a uniform business format, and provide for the sale of the product within a customer service oriented environment.
Franchise Offer: Tasti D-Lite LLC, offers franchises for Tasti D-Lite Centers to single-units franchisees, multi-units franchisees and area developers. All franchisees and area developers who open a Tasti Center will sign a franchise agreement.
Territory: For each Tasti Center, the franchisor grants the single unit franchisee a protected territory. The franchisee may face competition from other franchisees, outlets owned by Tasti D-Lite LLC, or from other channels of distribution or competitive brands that they control. Therefore, a single unit franchisee will not receive an exclusive territory. The territory generally will be defined by fixed geographical boundaries such as rivers, streets or highways, and will include a population based on various demographic statistical information.
Financing: Tasti D-Lite does not offer direct or indirect financing.
Training and Assistance: The classroom training takes place at their headquarters in Franklin, Tennessee. The In-Center training takes place at an existing Center designated as a Certified Tasti D-Lite Learning Center for 5 days. This training generally begins 6 to 8 weeks before the projected opening of the new Tasti Center. The franchisee and the manager must train the other employers and independent contractors before the opening and during the operation of the Tasti Center. The franchisee must pay travel, lodging and meal expenses for trainees and any compensation or benefits due to trainees during training. The franchisee must attend any conference scheduled and conducted by the franchisor. The focus of the conferences generally will be training, discussion and review of new business and marketing trends and methods.
Term of the Franchise Agreement and renewal: The initial term of the franchise agreement is 10 year with an option to renew for a set term described in the then-current franchise agreement.
Obligations and Restrictions:The franchisee, manager and staff must attend and successfully complete initial training. Each manager, employee, independent contractor or person attending initial training must sign a confidentiality and non-competition agreement before they access the manuals or any other confidential information. The franchise must offer for sale and sell only products approved or authorized by the franchisor. The franchisee may use products not purchased from the franchisor but those products must be of comparable quality and must be approved in writing before use to ensure maintenance of proper quality standards. Tasti D-Lite System may change the types of products that they approve or authorize, if the products are compatible with the Tasti D-Lite system. The franchise must be open for the business each week for minimum hours and days as stated in the manuals.
Total Number of Units end of year 2008: 38
Investment Tables:
Initial Investment:
| Expenditure | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Opening Logistics, Training and Software management System Fee | $15,000 | $15,000 |
| Grant Opening Contribution | $5,000 | $ 5,000 |
| Office Equipment &Supplies | $200 | $500 |
| Computer System | $3,300 | $10,000 |
| Hosted POS Web portal (includes first 3 years) | $1,400 | $1,800 |
| Support package (includes first 3 years) | $900 | $1,100 |
| Merchant Account Equipment | $0 | $500 |
| Voice and Data Circuits Setup Cost | $0 | $200 |
| Satellite Radio Installation | $500 | $800 |
| Furnishings, Fixtures, and Equipment (not including Soft Serve Equipment) | $68,000 | $90,000 |
| Soft Serve Equipment | $15,500 | $52,000 |
| Furnishings, Fixtures and Equipment Installation | $13,000 | $18,000 |
| Freight | $4,600 | $12,000 |
| Rent and Security Deposit | $10,000 | $25,000 |
| Leasehold improvement (based upon 9000 ft2) | $60,000 | $85,000 |
| Architect and Design | $6,000 | $15,000 |
| Utility deposits | $0 | $2,000 |
| Brand Wall Display Equipment and Installation | $1,200 | $4,500 |
| Security System and Installation | $200 | $6,000 |
| Initial Inventory Order | $4,400 | $6,600 |
| Travel, lodging and meals for initial training | $1,100 | $3,900 |
| Professional fees (Layers, accountant…) | $0 | $5,000 |
| Business licenses permits, ect (for 1st year) | $1,000 | $5,000 |
| Insurances | $2,000 | $6,000 |
| Additional funds (for 1st 3 months) | $10,000 | $30,000 |
| Total | $253,700 | $431,410 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Royalty | 5% Gross Sales |
National Marketing Fund |
Currently 2% of Gross sales |
| Co-op Marketing | Established in accordance with marketing co-op |
| Tasti D-Lite Software Upgrades | Pro rata cost of fee charged by vendor |
| Tasti D-Lite Hosted POS Webportal Annual Fee | Currently approximately $480 per location per year |
| Annual Software and Hardware Support Package renewal | Currently approximately $300 per terminal or back office computer |
| Initial Training of replacement staff | Currently $1,000 per person per training session |
| Additional Training | Will vary based upon the circumstances: currently approximately $100 to $150 per day of training per trainee, excluding travel expenses |
| Conferences | The attendees salaries and benefits and their travel, lodging and meal expenses |
| Field Training and Special Assistance | $500 per day, and our expenses |
| Transfer (franchise) | $5,000 per transfer |
| Renewal | 25% of the then-current Initial Franchise Fee |
| Resale Fee | $3,500 if the franchisee chooses to use the Franchisor’s services in locating a prospective buyer |
| Late Fee | $150 |
| Audit | Cost |
| Cost and Attorney’s fees | Cost |
| Indemnification | Cost |
The above information has been taken from the UFOC/FDD of Tasti D-Lite.
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