Franchising Since: 2014
Headquarters: St. George, Utah
Estimated Number of Units: 80
Franchise Description: Totally Nutz Franchise, LLC is the franchisor. Totally Nutz businesses sell fresh roasted cinnamon glazed nuts and related products at various venues, events, and mall locations. Totally Nutz businesses are typically operated from mobile self-contained units and non-traditional fixed-location kiosks. The franchisor may also allow franchisees to open Totally Nutz businesses in a retail location. Franchisees will choose the type of Totally Nutz business when they sign their first Franchise Agreement.
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Territory Granted: The territorial protections for the franchise will depend on the type of Totally Nutz business. If franchisees are operating a mobile business, they may operate at any event except for a “protected event” of another franchisee. If franchisees operate their Totally Nutz business from a fixed location, they may operate at any location which has been approved in writing by the franchisor. Franchisees do not receive any territorial exclusivity around their fixed location.
Obligations and Restrictions: The Totally Nutz franchise shall be managed by franchisees, or if they are an entity, by one of the owners who is a natural person with at least a 25% ownership interest and voting power in the entity (managing owner). The franchisor will allow franchisees to appoint a designated manager to run the day-to-day operations of the Totally Nutz franchise. Franchisees will need one designated manager for each Totally Nutz business that they operate. Franchisees must sell or offer for sale only those products and services authorized by the franchisor, and which meet its standards and specifications. Franchisees must follow the franchisor’s policies, procedures, methods, and techniques. Franchisees must sell or offer for sale all types of services and products specified by the franchisor.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are in good standing and they meet other requirements, they may add two successor terms of 10 years each.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or obligation.
Estimated Initial Investment
| Name of Fee | Low | High |
| Initial Franchise Fee | $27,500 | $27,500 |
| Training Expenses | $500 | $3,200 |
| 3-Months’ Lease Rent | $0 | $35,000 |
| Security Deposit | $0 | $1,000 |
| Cart / Kiosk Package | $37,000 | $78,500 |
| Tent | $0 | $7,000 |
| Cart / Kiosk Shipping | $0 | $5,000 |
| Additional Inventory | $0 | $40,000 |
| Vehicle and Trailer | $0 | $15,000 |
| Leasehold Improvements | $0 | $5,000 |
| Computer Equipment | $147 | $2,500 |
| Business Licenses and Permits | $50 | $500 |
| Insurance | $175 | $1,800 |
| Professional Fees | $0 | $1,000 |
| Optional Signage | $0 | $1,000 |
| Additional Funds – 3 months | $1,000 | $5,000 |
| ESTIMATED TOTAL | $66,372 | $229,000 |
Other Fees
| Type of Fee | Amount |
| Royalty Fee | 6% of gross revenue. |
| Brand Building Fund Contribution | $500 per year. |
| Technology Fee | To be determined. |
| Custom Advertising Fee | Actual costs plus 20% administration fee. |
| Unauthorized Advertising Fee | $500 per occurrence. |
| Insurance for Franchisees | Franchisees must reimburse the franchisor’s costs plus a 20% administrative fee. |
| Additional Training / Assistance | Then-current charge (up to $500 per day, not including travel and living expenses). |
| Additional Person Training Fee | $250 per additional attendee. |
| Training Cancellation Fee | $500 |
| Convention Fee | Then-current fee (currently estimated to be $500 per person). |
| Supplier and Product Evaluation Fee | Costs of inspection (estimated to be approximately $100 to $500). |
| Customer Issue Resolution | Varies; reasonable costs the franchisor incurs for responding to a customer complaint, which will typically be between $20 and $100. |
| Payment Service Fees | Up to 4% of total charge. |
| Late Payment Fee | The greater of: (i) the prime rate plus 8%; or (ii) 18% per annum. |
| Non-Sufficient Funds Fee | The lesser of: (1) $50 per occurrence and 2.5% of the amount requested, or (2) the highest amount allowed by state law. |
| Failure to Submit Required Report Fee | $100 per occurrence and $100 per week. |
| Audit Expenses | Cost of audit and inspection, any understated amounts, and any related accounting and legal expenses (the franchisor estimates this cost to be between $1,000 and $12,000). |
| Indemnification | All amounts (including attorney fees) incurred by the franchisor or otherwise required to be paid. |
| Professional Fees and Expenses | Will vary under circumstances. |
| Successor Franchise Fee | 20% of the then-current initial franchise fee. |
| Transfer | 25% of the then-current initial franchise fee. |
| Transfer of Cart or Kiosk Equipment | A minimum of 5% of the price of the equipment or $500 per cart or kiosk, whichever is greater, when transferred to another franchisee. |
| Resale Assistance Fee | $12,500 per Totally Nutz business. |
| Broker Fees | The actual cost of the brokerage commissions, finder’s fees, or similar charges. |
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