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Zoup! Franchise Cost & Fees

Date of Incorporation: 2002

Franchising Since: 2003

Headquarters: Southfield, Michigan

 

Business Description: The franchise business is a soup-differentiated fast casual restaurant business featuring a variety of soups, sandwiches and salads. Each location offers 12 hand-crafted varieties each day from its collection of hundreds of proprietary recipes. Zoup! restaurants also package larger quantities of food for consumption by larger groups referred to as "CaterZoup!". These CaterZoup! packages may be picked-up by the customer or delivered to the customer.

 

Franchise Offer: The franchise business is a quick casual restaurant that sells gourmet soups, salads, sandwiches and related items to the general public. It is possible to purchase a single franchise or an area development franchise. If the franchisee wishes to open two or more Zoup! restaurant franchises within an exclusive area, they can sign an area development agreement. The area developer is given the exclusive right to open Zoup! restaurant franchises in the designated area during the term of the area development agreement.

 

Financial Assistance: The franchisor does not offer any direct or indirect financing to their franchisees nor do they guarantee any note, lease or obligation.

 

Training and Assistance: The training program will be conducted without charge for up to 2 people who are owners of the franchise or management employees of the franchise. The franchisor will train additional people if the franchisee requests, but it may charge a reasonable fee for each additional person trained. The training program will generally be conducted over a 15 day period. Franchisees or their owners and management employees may be required to attend additional training, sales programs and meetings reasonably specified.

 

Territory: Franchisees will receive a protected area around the location of the restaurant. The protected area will typically be the area within a 1.5 mile radius of the restaurant, except in densely populated areas the protected area may be smaller and, in those cases, will be agreed to by the parties. During the term of the Franchise Agreement and except as provided in the Franchise Disclosure Document, neither the franchisor nor its affiliate will operate or authorize others to operate a retail restaurant business trademarks or system or a retail restaurant business selling substantially the same products or services as a restaurant at a retail location within the protected area.

 

Term of Agreement and Renewal: The length of the initial franchise term is 5 years. The term may be adjusted in the franchisor’s discretion to coincide with the term of the franchisee’s lease for the franchise location. Three 5-year renewal periods are available, if requirements are met.

 

Obligations and Restrictions: Franchisees (or if the franchisee is a corporation, partnership or other entity, at least one of the owners) must:
(1) Devote their full time and effort to the active management and operation of the franchise business;
(2) Preserve and exercise ultimate authority and responsibility with respect to the management and operation of the franchise business; and
(3) Represent and act on behalf of franchisee in all dealings with the franchisor. Franchisees must sell all products and services specified by the franchisor. The franchisee may not offer any products or services that have not been authorized. Franchisees may deliver immediately consumable products consistent with the catering format (CaterZoup!), but any other delivery of products is prohibited without prior written consent from the franchisor.

 

Estimated Number of Units: 85

 

Investment Tables:

Initial Investment

Name of Fee Low High
Initial Franchise Fee $39,900 39,900
Grand Opening Advertising $5,000 $5,000
Real Estate Rental $5,000 $10,000
Leasehold Improvements $180,000 $240,000
Technology Package $40,000 $46,000
Kitchen Equipment $78,000 $85,000
Furniture and Fixtures $58,000 $70,000
Signs (Interior and Exterior) $15,000 $24,000
Blue Prints, Architect, Plans and Permits $10,000 $14,000
Initial Inventory and Operating Supplies $21,000 $21,000
Insurance $1,500 $2,500
Travel and Living Expenses while Training $0 $3,500
Legal, Accounting and Other Miscellaneous Expenses $3,000 $13,500
Additional Funds (3 Months) $5,000 $15,000
Total Estimated Initial Investment $321,400 $609,400

 

Other Fees

Type of Fee Amount
Royalty 6% of gross sales.
National Brand Marketing Fund Contribution 1% of gross sales not to exceed 2% of gross sales.
Grand Opening Advertising $5,000
Training and Customer Service Fees 0.5% of gross sales not to exceed 1% of gross sales.
Z! Net Technology License and Development Fee $36 per week.
Advertising Cooperative Amount determined by cooperative.
Maintenance and Repairs Actual cost to the franchisor.
Insurance Actual cost to the franchisor.
Additional Training Currently $100 per day or $250 per day plus travel if provided at the franchise location.
Additional Assistance in Set-up and Opening Currently $100 per day for training conducted at the franchisor’s location and $250 per day plus travel expenses if provided at the franchise location.
Late Charge and Interest $25 per week late charge for each invoice not paid when due and 1.5% per month interest.
Transfer Fee – Franchise Agreement $15,000 ($15,000 per Restaurant developed under the Area Development Agreement).
Renewal Fee $7,500
Audit Expenses Cost of audit.
Indemnification Amount will vary under circumstances.
Costs and Attorneys’ Fees Amount will vary under circumstances.
Annual Hardware & Software Maintenance & Online & Smartphone Ordering Subscription Fees $3,200 to $3,800 per year.
Relocation Fee $7,500
Liquidated Damages for Non-Compliance with Operating Standards $250 to $2,500 per occurrence, depending on the nature of the non-compliance.
Liquidated Damages for Interfering with Employment Relations of Others $2,500 per employee.

The above information has been taken from the FDD of Zoup!. Year of FDD: 2015

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