Maui Wowi Hawaiian Franchise Costs, Fees & FDD

Year Business Began: 1982

Franchising Since: 1997

Headquarters: Scottsdale, Arizona

Estimated Number of Units: 80

Franchise Description: The franchisor is Kahala Franchising, L.L.C. Franchisees operate a restaurant called “Maui Wowi” preparing and serving fresh fruit smoothies, Hawaiian coffee and related espresso beverages, a variety of Hawaiian products, and other beverage and food items, and other products and services. Maui Wowi products are sold from either fixed store fronts, non-traditional locations such as malls, airports or business complexes, or from portable units placed at events that occur on a periodic basis or are held in special or temporary venues. There are two types of Maui Wowi franchises:

• Standard Franchise: enables franchisees to own and operate three operating units of any type in any combination.
• Empire Builder Franchise: enables franchisees to own and operate 10 operating units of any type in any combination.

Training Overview: The franchisor will provide an initial training program to be conducted in the Scottsdale, Arizona area or at another site it designates. The training program usually lasts approximately five to eleven days, in the franchisor’s discretion, depending on the type of operating unit the franchisee chooses to open as their first operating unit. Up to two individuals designated by the franchisee (three if the franchisee acquires an empire builder franchise) are eligible to participate in the training program without a tuition charge. Additional training or assistance will be provided upon the franchisee’s reasonable request. Further, if the franchisor determines that it is appropriate or necessary, in its sole discretion, whether as a result of observations or otherwise during the operation of the franchised business, the franchisor can require that franchisees (or, if they are not an individual, then a managing member, partner or officer designated by them to participate personally in the franchised business) and/or any of their managers, attend and successfully complete additional training, including online computer training designated by the franchisor. Franchisees (or, if they are not an individual, then a managing member, partner or officer designated by them to participate personally in the franchised business) will attend, at their expense, any international conferences held that the franchisor designates as mandatory.

Territory Granted: The franchisor does not offer territories, and it reserves the right to approve another operating unit in a location in close proximity to the franchisees operating unit. Other than the specific approved permanent site or protected event, franchisees will not receive an exclusive territory. If franchisees are operating a mobile operating unit at events, they may operate at any event except for a protected event of another franchisee or an event located in the state of Utah. If franchisees are operating a fixed operating unit, or if they are operating a mobile operating unit at a permanent site, they may operate at any permanent site, outside of the state of Utah, which has been approved in writing by the franchisor. However, the franchisor will consider proximity when evaluating the permanent site of another franchisee submitted for its approval.

Obligations and Restrictions: While the Franchise Agreement does not specifically require franchisees or their principals to personally participate in the direct operation of the franchise, it is the franchisor’s intention to select as Maui Wowi franchisees only those who plan to actively participate in the direct operation and daily affairs of the Maui Wowi restaurant. The franchise must be personally managed with on-premises supervision and directly operated by franchisees or another partner, shareholder or member of their business organization, or a manager who must have successfully completed the training program. The franchisor requires that the business is solely that of a Maui Wowi restaurant, and franchisees may not conduct any other business or activity at the site of any operating unit without its prior written approval. Franchisees may offer and sell only those products, goods, and services specified and approved by the franchisor in writing. Franchisees will follow the franchisor’s policies, procedures, specifications, methods and techniques.

Term of Agreement and Renewal: If franchisees are purchasing a new Maui Wowi franchise, the term is 10 years from the Franchise Agreement effective date. If franchisees are not in default and satisfy certain conditions, they may renew for a single renewal term of 10 years, with no further right to renew at the end of the renewal term.

Financial Assistance: The franchisor does not offer direct or indirect financing nor will it guaranty a franchisee’s obligations under any note or other obligation, except potentially for the lease for a franchisee’s site or if the franchisees purchase a restaurant corporate-owned “as-is” by one of its affiliates, and only in its sole and absolute discretion.

Estimated Initial Investment
Mobile Unit Franchise

Name of Fee	Low	High
Initial Franchise Fee	$24,000	$50,000
Travel and Living Expenses (2 persons) while training, not including salaries, if any, for franchisees and their employees	$650	$3,550
Mobile Operating Unit	$0	$86,000
Coffee Equipment	$0	$18,000
Optional Equipment	$0	$16,000
Opening Inventory	$1,500	$7,000
POS System, Credit Card Processing and Back Office Computer Equipment (Optional)	$0	$10,000
Miscellaneous Opening Costs	$1,750	$5,000
Additional Funds - 3 Months	$0	$13,500
Concession License Fee	Varies
Business Insurance	$1,000	$4,000
ESTIMATED TOTAL	$28,900	$213,550
Additional Investment if the Mobile Operating Unit Is Operated from a Permanent Site
POS System, Credit Card Processing and Back Office Computer Equipment (Optional)	$5,000	$15,000
Real Estate Lease	$1,200	$30,000
ESTIMATED TOTAL*	$35,100	$258,550

 
Single Unit Franchise (for a Fixed Operating Unit)

Name of Fee	Low	High
Initial Franchise Fee and Training Fee	$24,000	$50,000
Travel and Living Expenses (2 persons) While Training, Not Including Salaries, if any, for Franchisees and Their Employees	$650	$7,000
Architect's Fees	$10,000	$20,000
Real Estate Lease	$1,200	$30,000
Fixed Kiosk	$0	$128,000
Equipment/Decor	$9,000	$38,000
Construction	$32,000	$210,000
Opening Inventory	$2,000	$10,000
Signage	$7,000	$16,000
POS System, Credit Card Processing and Back Office Computer Equipment (Optional)	$3,000	$15,000
Miscellaneous Opening Costs	$3,000	$8,000
Additional Funds - 3 Months	$0	$50,000
Grand Opening Marketing	$10,000	$10,000
Business Insurance	$1,000	$5,000
ESTIMATED TOTAL*	$102,850	$597,000

*The estimated initial investment ranges do not include real estate costs and/or rent for the business location except for the initial security deposit.

Other Fees

Type of Fee	Amount
Advertising Fee	15% of the purchase price of Maui Wowi products and Maui Wowi supplies and equipment.
Optional Snack Program Fee	$150 per month.
Technology Management Fee	$99.95 per month.
Additional Persons Training Fee (Initial Training)	$1,250 per person.
Additional Training Fee	$300 per person per day.
Annual Meeting Registration Fee	$1,000 for one or two to attend a Franchise Owner International Convention. Franchisees will be charged an additional $500 if they do not attend the annual meeting. There is an additional $500 fee for each additional attendee the franchisee brings in excess of two (not including travel and living expenses).
Training Cancellation Fee	$500
Depository Account	$3,000 (must be replenished on a regular basis).
Data Fees	Up to $75 per month (subject to reasonable annual and/or service enhancement increases).
POS System Software, Maintenance, Support, and Upgrade Contract	$129 per month.
Renewal Franchise Fee	25% of the then-current initial franchise fee not including any discounts or reductions.
Transfer Franchise Fee	25% of the then-current and applicable initial franchise fee.
Relocation Fee	$500
Transfer Training Fee	$2,500 for two individuals ($500 for each additional individual).
Document Administration Fee	$500
Default Rate	(a) the Prime Rate plus 4%, or (b) 18% per annum calculated monthly on any outstanding balance, or the highest permissible rate.
Late Report Fee	$100 per report.
Sublease Late Charge	5% of the late or unpaid amount plus any late charges and interest incurred under the direct lease with the property owner (master lease) as a result of the late payment (where applicable).
Collection Costs	All collection costs including reasonable attorneys’ fees.
Non-Sufficient Funds Fee	$50 for each electronic funds transfer returned for non-sufficient funds; $25 for each check or draft returned for non-sufficient funds.
Audit	Cost of audit plus interest at default rate on underpayments or the maximum rate permissible by law.
New Supplier Approval Fee	A charge not to exceed the reasonable cost of the inspection and the actual cost of the test not to exceed $5,000.
Non-Participation Fee for Fixed Operating Unit	$100 per day.
Early Termination Fee	See FDD.
Management Fee	6% of the franchised business’ gross sales (in addition to the royalty fee and advertising fee) plus the franchisor’s direct out-of-pocket costs and expenses.

The above information has been compiled from the FDD of Maui Wowi. Year of FDD: 2025.
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