Saladworks Franchise Costs, Fees & FDD

Year Business Began: 1986

Franchising Since: 1992

Headquarters: St. Petersburg, Florida

Estimated Number of Units: 90

Franchise Description: Saladworks, LLC is the franchisor. The franchisor grants franchises for the establishment, development, and operation of unique Saladworks restaurants offering a variety of salads, sandwiches, wraps, panini, soups and other breads and beverages, prepared in accordance with specified recipes and procedures.
Training Overview: The franchisor will train franchisees and up to three of their management personnel. The required training lasts up to four weeks. Two of those weeks will be spent in the Philadelphia, Pennsylvania, area for classroom and hands-on training, followed by up to two weeks of training in the franchisee’s own restaurant or another location the franchisor designates. In addition, there is a sanitation certification course as prepared by the National Restaurant Association that franchisees will be required to take online and then the franchisor will proctor the exam. The franchisor will send one or more of its representatives to assist with the restaurant’s operation during the initial opening period, which is up to five days of on-site assistance if the restaurant is the franchisee’s first Saladworks restaurant. The franchisor may also offer additional training or refresher courses or seminars to be conducted at its headquarters or at another place it designates, and franchisees and/or their manager may be required to attend these courses. Each year, the franchisor may hold an annual convention or regional meeting, which franchisees must attend.

Territory Granted: Franchisees will operate their restaurant from a specific location which the franchisor approves which will be identified on the data sheet of the Franchise Agreement. Contemporaneously with the franchisor’s approval of the location, the franchisor will provide franchisees with a protected territory for the approved location. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands the franchisor controls. The scope and size of the territory will be in the franchisor’s sole discretion, based on the following factors: general location, traffic patterns, parking availability, size of site in relation to building type, access, visibility, area demographics, population density, surrounding area commercial activity, and market demands. Because these factors may vary significantly from location to location, at a minimum, the territory may be limited to the accepted location.

Obligations and Restrictions: Franchisees (or at least one of their principals if they are a corporation, limited liability company or partnership) must devote their personal full-time attention and best efforts to the management and operation of the restaurant. Franchisees may, however, delegate the day-to-day supervision of the operation of their restaurant to a manager. The manager must successfully complete the initial training before assuming any managerial responsibility. The restaurant must, at all times, be managed by the franchisee or a manager who has successfully completed the initial training. During the initial term of the franchise, and during any renewal term, the franchisor may, in its sole discretion, perform or obtain credit reports, lien searches or other background searches on franchisees or their principals that it considers appropriate. Franchisees may offer for sale and sell only those food and beverage products and accompanying services that the franchisor has approved for the system. Franchisees must offer all services and products that the franchisor designates as required for all franchisees.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Franchisees have the right to renew the franchise for successive 10-year terms, if certain conditions are met.

Financial Assistance: The franchisor does not offer direct or indirect financing, and the franchisor does not guarantee a franchisee’s note, lease or any obligations. A 25% discount of the initial franchise fee is available for active members and honorably discharged veterans of the U.S. Armed Forces, including a spouse or widow of an active member or honorably discharged veteran, and qualified first responders.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$35,000	$35,000
Architectural Plan Review	$0	$1,000
Architect Fees	$13,500	$15,500
Permits & License Fees	$1,500	$5,000
Leasehold Improvements	$250,000	$325,000
Equipment	$150,000	$165,000
Furniture	$14,000	$22,000
Millwork	$40,000	$55,000
Smallwares	$10,000	$12,500
Exterior Signage	$6,000	$14,000
Interior Signage and Graphics	$1,000	$2,500
Technology Systems	$25,000	$32,000
Grand Opening Marketing	$15,000	$15,000
Uniforms, Menu Materials, Office Supplies	$3,500	$4,500
Travel & Living Expenses While Training	$0	$7,500
Opening Inventory	$9,000	$14,500
Insurance	$1,500	$3,500
Additional Funds – 3 months	$15,000	$35,000
ESTIMATED TOTAL	$590,000	$764,500

 
Other Fees

Type of Fee	Amount
Royalty Fee	6% of total net sales.
Brand Development Fund Advertising Fee	3% of net sales.
Local Advertising and Promotion	2% of net sales.
Technology Bundle Fee	$605 - $1,400
Unauthorized Advertising Fee	$1,000 per occurrence.
Site Selection Extension Fee	$1,500
Maintenance/ Repair/ Refurbishing	$75,000 - $150,000
Grand Re-Opening Marketing Fee	$5,000
Transfer Fee	50% of the then-current initial franchise fee if transferring to an existing franchisee; or 75% of the then-current initial franchise fee if transferring to a new owner. The fee to transfer ownership among existing partners only is $2,000.
Interest	Lesser of 18% per year, or highest rate allowed by law, plus $100. (In California, the highest lawful rate of interest is 10% per annum.)
Insufficient Funds Fee	Lesser of 18% per year, or highest rate allowed by law, plus $100.
Costs & Attorneys’ Fees	Actual amount incurred.
Audit Expenses	Actual amount incurred; cost ranges from $250 to $7,500.
Insurance	Cost of insurance. If franchisees fail to maintain their insurance as required, there is an 18% administrative cost charge if the franchisor exercises their right to procure the franchisee’s insurance.
Renewal Fee	$17,500
Service Fee	$600 per day.
Supplier Evaluation Fee	A minimum of $500.
Annual Convention/Regional Meeting	The franchisee’s travel and lodging expenses.
Failure to Attend Annual Convention	$1,000
Training Cancellation Fee	Currently $400 per person.
Food Safety and Operations Excellence Report Fee	Actual amount incurred.
Guest Complaint Resolution Fee	$10 - $100
Critical Operating Standards Violation	$250 - $1,000
Additional Requested Store Opening Assistance & Additional Requested On-Site Assistance	Currently, $500 per person per day, plus expenses.
Additional Training	Travel and lodging expenses.
Additional Onsite Visit/Evaluation	Actual amount incurred.
Training for Replacement Personnel	Travel and lodging expenses.
Affiliate Brand License	$7,500
Survey Fee	Actual amount incurred.
Use of Proprietary Marks	Actual amount incurred.
Indemnification	Actual amount incurred.
Liquidated Damages	Up to 36 months of average royalty fees and brand fund contributions paid in 12 months prior to termination, but in any event not less than $100,000.

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