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Fresh Healthy Vending Franchise Cost & Fees

Date of Incorporation: 2010

Franchising Since: 2010

Headquarters: San Diego, California

 

Business Description: Fresh Healthy Vending LLC franchisees own and operate Vending Machines and/or Micro Markets that dispense a variety of healthy, natural, and organic snack food and beverage products in approved locations such as business offices, hotels, hospitals, schools, universities and industrial facilities.

 

Franchise Offer: The franchisor offers franchises to own and operate (including maintaining, stocking, servicing, repairing and cleaning) Vending Machines and/or Micro Markets that dispense a variety of healthy natural and organic snack food and beverage products in approved locations such as business offices, hotels, hospitals, schools, universities and industrial facilities. Because Micro Markets are “self-checkout”, they are located in secure areas of the above-described locations, such as the break room in corporate offices, teachers’ lounges in schools and universities, or in supervised retail environments such as dance or yoga studios.

 

Financial Assistance: When franchisees purchase their Vending Machines or Micro Markets, franchisees may pay for the machines in full when they sign their Franchise Agreement, or they can pay 40% of the total purchase price when they sign the Franchise Agreement and the balance once the franchisor has secured 50% of their Vending Machine or Micro Market locations. Other than this, the franchisor does not offer direct or indirect financing to franchisees or guarantee any note, lease, or obligation of theirs in connection with the purchase or establishment of your franchise business.

 

Training and Assistance: Currently, the initial training program lasts for two days. Initial training program is currently held at the franchisor’s corporate headquarters in San Diego, California at a time it designates. The franchisor will conduct initial training for two persons at no cost to franchisees. The franchisor may require franchisees and/or their employees or representatives to attend additional or refresher training courses, or participate in similar continuing education programs. These additional courses may address new or modified procedures or address other operational aspects of their franchise business. The franchisor may provide the franchisee with a remedial training program if it determines the franchisee is not in compliance with the terms of the franchise agreement. The franchisor also may periodically hold a Franchisee Conference for all Fresh Healthy Vending franchisees.

 

Territory: For standard territories, the territory will not be exclusive. Franchisees may face competition from other Fresh Healthy franchisees, machines the franchisor or its affiliates own and operate, or from other channels of distribution or competitive brands that it controls. The franchisor may grant “protected” territories to franchisees who purchase 30 or more Vending Machines or Micro Markets and commit to purchasing a number of additional machines sufficient to complete the development of the Territory as it may determine.

 

Term of Agreement and Renewal: The length of initial franchise term is 10 years. Two five-year renewal terms are available, if requirements are met.

 

Obligations and Restrictions: The franchisee will directly supervise the operation of the franchised business on a full-time basis. If the franchisee is a corporation or other entity, an owner must directly supervise the business. In order to maintain the reputation, goodwill and value of our system, franchisees may only offer products and services at a Vending Machine or Micro Market that the franchisor approves. Typically, these products will be those listed on the vendor’s product list.

 

Estimated Number of Units: 285

 

Investment Tables:

Initial Investment

Name of Fee Low High
Initial Franchise Fee ($1,250 per Vending Machine and Micro Market; minimum purchase of 10 machines) $12,500 $12,500
Purchase Price for Vending Machines or Micro Markets (minimum purchase of 10 machines) $100,000 $145,000
Initial Training $0 $2,000
Storage Facility Lease $0 $500
Equipment Other Than Machines $600 $2,500
Location Commissions (of Vending Machine and Micro Market monthly net profits) $0 25%
Email Account $0 $50
Deposits and Other Permits and Fees $0 $1,000
Insurance $350 $3,000
Vehicle $0 $750
Customized Vehicle Graphics $0 $3,000
Professional Fees (legal and accounting) $0 $1,500
Opening Inventory $3,000 $3,000
Coin Float for Vending Machines $1,000 $1,000
Additional Funds - 3 months $5,000 $30,000
Estimated Total $122,450 $205,800

 

Other Fees

Type of Fee Amount
Royalty Fee 6% of the Monthly Gross Revenue of each Vending Machine; 12% of Monthly Gross Revenue of each Micro Market (including merchant service fees).
Advertising Fee $75 per Vending Machine or Micro Market.
Micro Market Software License Fee $55 per month, per Micro Market.
Interest and Late Charge on Overdue Payments Greater of 10% or the maximum rate permitted by law; late charge equal to 5% of amount late.
Initial Training Fee $250 per person per day.
Remedial Training $1,000 per person per day.
Additional Training Fee $250 per person per day.
Franchisee Conference Fee $500 per person.
Default Fee $200 per default.
Additional Vending Machines and Micro Markets $1,200 per new or pre-owned machine plus the cost of each machine purchased.
Dispute Resolution Will vary based on circumstances.
Machine Graphics (Additional Only) $350
Breach of Non-Termination Covenant 5% of the gross revenue of any competing business throughout the one-year non-compete period.
Indemnification Will vary based on circumstances.
Insurance Varies by provider and coverage.
Relocation Fee $1,000 per Vending Machine or Micro market (does not include the Delivery Fee)
Management Fee $75 per day per Vending Machine or Micro Market per day.
Manual Replacement Fee $100
Renewal Fee - Franchise Agreement $5,000
Technical Service Fees (Outside of Warranty Period) $120 per hour.
Transfer Fee $1,000 per Vending Machine or Micro Market, plus any attorneys’ fees we incur in connection with the transfer.

The above information has been taken from the FDD of Fresh Healthy Vending. Year of FDD: 2015

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