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Totally Nutz Franchise Costs & Fees

Date of Incorporation: 1990
Franchising Since: 2014
Headquarters: St. George, Utah

Business Description: Totally Nutz businesses sell fresh roasted cinnamon glazed nuts and related products at various venues, events, and mall locations.

Franchise Offer: Totally Nutz Businesses are typically operated from mobile self-contained units and non-traditional fixed-location kiosks. The franchisor may also allow franchisees to open Totally Nutz Businesses in a retail location. The franchisor will choose the type of Totally Nutz Business when the franchisee’s first Franchise Agreement is signed.

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

Training and Assistance: Franchisees or their managing owner, if they are an entity, and any designated manager must complete the initial training to our satisfaction before they open their Totally Nutz Business. Initial training consists of approximately 33 hours of classroom training at the franchisor’s Corporate Office in St. George, Utah or other approved location. The franchisor provides initial training at no charge for up to 2 people. From time to time, the franchisor may require that franchisees, designated managers, and other employees attend system-wide refresher or additional training courses. Some of these courses may be optional, while others may be required.

Territory: The territorial protections for the franchise will depend on the type of Totally Nutz Business. If franchisees are operating a mobile business, they may operate at any Event except for a “Protected Event” of another franchisee. If franchisees operate your Totally Nutz Business from a fixed location, they may operate at any location which has been approved in writing by the franchisor. Other than the specific approved site or the operation at a Protected Event, franchisees will not receive an exclusive territory based on distance, geography, or population.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are in good standing and they meet other requirements, they may add 1 successor term of 10 years.

Obligations and Restrictions: The Totally Nutz Franchise shall be managed by franchisees, or if they are an entity, by one of the owners who is a natural person with at least a 25% ownership interest and voting power in the entity (Managing Owner). The franchisor will allow franchisees to appoint a designated manager to run the day-to-day operations of the Totally Nutz Franchise. Franchisees will need one Designated Manager for each Totally Nutz Business that they operate. Franchisees must sell or offer for sale only those products and services authorized by the franchisor, and which meet its standards and specifications. Franchisees must follow the franchisor’s policies, procedures, methods, and techniques. Franchisees must sell or offer for sale all types of services and products specified by the franchisor.

Estimated Number of Units: 15

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $27,500 $59,500
Training Expenses $1,500 $3,200
3-Months’ Lease Rent $0 $35,000
Security Deposit $0 $1,000
Cart/Kiosk Packager $26,000 $52,000
Cart/Kiosk Shipping $0 $3,500
Additional Inventory $0 $40,000
Vehicle and Trailer $0 $11,000
Leasehold Improvements $0 $5,000
Computer Equipment $500 $2,500
Business Licenses and Permits $50 $500
Insurance $175 $1,800
Professional Fees $0 $5,000
Optional Signage $0 $2,000
Additional Funds – 3 months $1,000 $5,000
ESTIMATED TOTAL $56,725 $227,000
Other Fees
Type of Fee Amount
Royalty 7% of Gross Revenue.
Brand Building Fund Contribution Up to 3% of your weekly Gross Revenue.
Local Advertising Payment The difference between the amount franchisees spent on local advertising each month and their required local advertising expenditure (2% of your monthly Gross Revenue).
Local and Regional Advertising Cooperatives An amount set by the cooperative.
Promotional Materials Fee Varies depending on merchandise.
Custom Advertising Fee Actual costs plus 20% administration fee.
Unauthorized Advertising Fee $500 per occurrence.
Insurance for Franchisees Franchisees must reimburse the franchisor’s costs plus a 20% administrative fee.
Additional Training/Assistance Then-current charge (up to $500 per day, not including travel and living expenses).
Additional Person Training Fee $250 per additional attendee.
Convention Fee Then-current fee (currently estimated to be $500 per person).
Training Cancellation Fee $500
Supplier and Product Evaluation Fee Costs of inspection (estimated to be approximately $100 to $500)
Customer Issue Resolution Varies; reasonable costs the franchisor incurs for responding to a customer complaint, which will typically be between $20 and $100
Payment Service Fees Up to 4% of total charge.
Late Payment Fee The greater of: (i) the Prime Rate plus 8%; or (ii) 18% per annum.
Non-Sufficient Funds Fee The lesser of: (1) $50 per occurrence and 2.5% of the amount requested, or (2) the highest amount allowed by state law.
Failure to Submit Required Report Fee $100 per occurrence and $100 per week.
Audit Expenses Cost of audit and inspection, any understated amounts, and any related accounting and legal expenses (the franchisor estimates this cost to be between $1,000 and $12,000)
Indemnification All amounts (including attorney fees) incurred by the franchisor or otherwise required to be paid.
Professional Fees and Expenses Will vary under circumstances.
Successor Franchise Fee 20% of the then-current Initial Franchise Fee.
Transfer 25% of the then-current Initial Franchise Fee.
Resale Assistance Fee $12,500 per Totally Nutz Business.

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

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