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UFood Grill Franchise Cost & Fees

Date Incorporation: 2006


Franchising Since:  2006

Headquarters: Massachusetts

Description: The franchise operates retail outlets under the name "UFood Grill" which offer food service featuring low-fat, low-carbohydrate and low-calorie food items, selected beverages and nutritional products

Franchise Offer: The franchisor will offer the right to establish and operate single or development UFood franchises, within a designated geographic area.

Financial Assistance: The franchisor does not offer direct or indirect financing.

Training and Assistance: The general manager, assistant manager and kitchen manager must attend and complete the initial training program. The initial training program will last approximately 5 weeks and will be held at a training facility in the Boston, Massachusetts area.

Territory: The franchisee will be granted an exclusive territory. In an urban area, the minimum territory will comprise 40,000 daytime workers. In a suburban area, the minimum territory will comprise 60,000 households.

Term of Agreement and Renewal: The length of the franchise term is15 years, with an option for renew for up to 2 successor terms of 5 years.

Obligations and Restrictions: An approved and qualified general manager must devote all of his or her business time and attention to the supervision of the outlet's day-to-day operations. The outlet at all times must be under the direct, on-site supervision of the general manager or an assistant general manager who has completed the training program satisfactorily.

Total Number of Units: 8 outlets at the end of 2007

Total Number of franchises Units: 4 franchised outlets at the end of 2007

Investment Tables:

Initial Investment:
Expenditures Low High
Initial Franchise Fee  $35,000 $35,000
Real Estate/Rent - 3 months $10,000 $30,000
Security Deposit $5,000 $10,000
Leasehold Improvements  $250,000  $375,000
Furniture, Fixtures, and Equipment  $140,000 $155,000
Signage (interior and exterior) $20,000  $25,000
Professional Fees $14,000 $18,000
POS Computer System, and Other Office Equipment and Supplies (6) $30,000 $40,000
Small wares $7,500 $8,000  
Opening Inventory and Supplies $27,000  $37,000
Grand Opening Marketing $15,000 $15,000
Miscellaneous  $10,000 $10,000
Training Expenses (out-of-pocket costs for training in Boston and pre-opening training at location) $10,000 $24,000
Sub Total $573,500   $782,000
Working Capital - 3 months $35,000 $70,000
Total estimated initial- investment  $608,500  $852,000

 

Ongoing Fees:

Name of Fee Amount
Royalty 5% of Gross Receipts
Reimbursement of Out-of-Pocket Training Expenses The franchisor’s cost
Grand Opening Marketing Program At least $15,000
System wide Advertising Fund Contribution Currently, 1.5% of Gross Receipts
Local Marketing Spending Requirement At least 1.5% of Gross Receipts
Cooperative Advertising Programs Not currently collected. If the franchisor forms a cooperative, the required contribution will not exceed 1.5% of Gross Receipts
Additional Training or Assistance Currently, $300 per day plus expenses, but could increase if costs increase.
Replacement Copy of Manuals The franchisor’s cost plus shipping
Interest on Late Payments Lesser of 18% per year or highest legal rate
Cleaning, Repair, Remodeling, Upgrading Will vary under circumstances
Required Purchases Will vary under circumstances
Product Evaluation Costs Cost of evaluation, inspection, and supervision of distributor/supplier
Reimbursement of Required Insurance if You Do Not Acquire it Will vary under circumstances. 
Reimbursement of Audit Costs Will vary under circumstances
Transfer Fee $10,000
Offering Expenses Will vary under circumstances
Successor Franchise Fee 20% of then-current initial franchise fee
Management Fee $1,000 per day (plus costs and expenses)
Computer Systems, Maintenance, and Support Costs of Service
Indemnification Will vary under circumstances
Legal Fees and Costs Will vary under circumstances
Liquidated Damages Upon Hiring a Trainer The then current annual salary of the trainer hired

 

Date of FDD: 29/09/2008

 

The above information has been taken from the UFOC/FDD of UFood Grill 

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