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 does it guarantee a franchisee’s note, lease or obligation.
Training and Assistance: Franchisees (or their designated representative if the franchisee is a corporation or other entity) must complete the training program specified by the franchisor before operating the franchise business. The training program will be conducted without charge for up to 3 persons who are owners of the franchise or management employees of the franchise. If this is the franchisees first Restaurant, the franchisee must have at least 2 individuals trained. The franchisor will train additional persons 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 17 day period. The first part of training will take place at the franchisor’s Business Office and Training Center in Southfield, Michigan and a Zoup! Training store operated by its affiliate in Southfield or Troy, Michigan. An additional 5 to 10 days of training will take place at the franchisee’s Restaurant before and at the time of the opening of the Restaurant. The franchisor will provide a representative for up to 8 days before and within the first week the Restaurant is open for business to assist in the setup and initial operation of the Restaurant. 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, but any other delivery of products is prohibited without prior written consent from the franchisor.
Estimated Number of Units: 95
|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|
|Furniture and Fixtures||$55,000||$55,000|
|Signs (Interior and Exterior)||$15,000||$15,000|
|Blue Prints, Architect, Plans and Permits||$14,000||$14,000|
|Initial Inventory and Operating Supplies||$30,000||$30,000|
|Travel and Living Expenses while Training||$0||$3,600|
|Legal, Accounting and Other Miscellaneous Expenses||$5,250||$16,250|
|Additional Funds (3 Months)||$5,000||$15,000|
|Total Estimated Initial Investment||$386,650||$576,250|
|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.|
|Technology License and Development Fee||$150 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||$15,000 ($15,000 per Restaurant developed under the Area Development Agreement).|
|Audit Expenses||Cost of audit.|
|Indemnification||Amount will vary under circumstances.|
|Costs and Attorneys’ Fees||Amount will vary under circumstances.|
|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: 2016
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